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CU Snapshot
| Apr '18 | Mar '18 | |
| # of CUs | 5,724 | 5,727 |
| Members (millions) | 115.3 | 114.9 |
| Total Assets ($ billions) | $1,455.3 | $1,459.9 |
| Total Savings ($ billions) | $1,219.8 | $1,228.8 |
| Net Cap. Assets | 10.5% | 10.4% |
| Loans to Savings | 82.9% | 81.5% |
| Loan Delinq. | 0.8% | 0.8% |
Reach the 'Financially Unengaged'
Tips for bringing individuals into the financial mainstream.
A lack of engagement with a traditional financial institution not only leads to poor financial choices, but it also leads to severe vulnerability for those who are suddenly faced with a financial shock, according to the Center for Financial Services Innovation (CFSI).
That's especially concerning, as 39 million—or 16%—of Americans fall into what the CFSI calls the "Financially Unengaged" category, meaning they have either very little or no relationship with a financial institution.
In addition to leaving themselves vulnerable to financial crises, those found in the Financially Unengaged category face a variety of financial challenges, such as low levels of savings, poor budgeting habits, and an overall lack of confidence in financial skills. Other factors for this group:
► Only one in three plans ahead for large, irregular expenses;
► 62% don't know how long they could make ends meet in the event of a sudden drop in income;
► Only 22% have a regular savings habit; and
► Less then one-third believe they have the knowledge and skills to manage their finances properly.
CFSI also finds that individuals who are financially unengaged are the least likely to have a checking account (more than a quarter don't), a savings account (50% don't), or a credit card (55% don't).
Credit unions can make a connection with this group, CFSI says.
First, partner with organizations that already have relationships with these consumers, such as schools, service organizations, or faith-based organizations.
Next, increase awareness about products that meet the group's needs to show the benefits of engaging with the credit union.
And finally, offering credit-building products and credit counseling services to make a deep impression on the typical financially unengaged consumer that has demonstrated a general misunderstanding or apathy toward their credit situation.
This article is part of a four-part series highlighting analysis of American financial health by the Center for Financial Services Innovation (CFSI). To read more, visit news.cuna.org.
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