Regular credit unions could be major providers of retail banking services to lower-income and minority families. They use federal and state tax exemptions to provide lower-cost loans, higher interest rate savings accounts, and financial education to their members. A recent Woodstock Institute report showed that credit unions are much more likely to offer fairly priced credit cards with clearer terms than banks. But the movement embraces its mission to serve "people of modest means" reluctantly and ineffectively. Past Woodstock Institute research has indicated that specially designated low-income credit unions are much more successful at reaching lower-income people than are mainstream credit unions. However, these credit unions make up only a small percent of the over 10,000 credit unions currently in operation. From our experience, many mainstream credit unions have not used their considerable resources to attract lower-income people as members and credit union regulators continue to resist enforcing provisions that would require mainstream credit unions to live up to their mandate to serve people of modest means.

Woodstock Institute works to encourage mainstream credit unions to enroll more lower-income members, pursue new product development for lower-income people and, at the same time, showcase credit unions that are serving lower-income people so that other mainstream credit unions might follow suit.