Co-authors: Annie Snead, Executive Director Of Philanthropy and Community Relations, Ent Credit Union; Dr. Ryan Halley, Senior Vice President of Financial Wellness, Rivermark Community Credit Union
The poverty line is often treated as the measure of stability, yet families earning above it still find themselves making difficult choices when it comes to funding basic necessities. In Colorado, 37 percent of households face this reality. The number rises to 42 percent in Oregon and 38 percent in Washington.
Credit unions exist to meet challenges like this, with a mission that goes beyond banking. Our aim is to strengthen financial wellness for individuals and the communities they serve. That commitment is reflected in Backbone, a coalition of credit unions (a coalition we are all proud to be members of) dedicated to advancing community well-being and ensuring families have the support they need to thrive.
One tool used to better understand critical community needs is the ALICE Report. ALICE, developed and tracked by United Way, stands for Asset Limited, Income Constrained, Employed, which are households that earn more than the federal poverty level, but are forced to choose between necessities like housing, childcare, food, transportation, and healthcare because of affordability. Nationwide data shows that more than 40 percent of U.S. households fall into this category.
ALICE represents essential pillars in our communities: teachers, first responders, military veterans, early childhood educators, and other essential workers. These individuals work hard at their jobs, but face impossible tradeoffs: fix the car or pay the childcare bill? Pay the utility bill or buy groceries?
Housing and childcare consistently rank among the largest expenses for ALICE households, and insights from ALICE Reports have guided credit unions in directing community investments toward these needs. They also inform nonprofit strategies, shape local programs, and influence statewide legislation aimed at better supporting working families.
Without data from ALICE Reports, many households would remain invisible to policymakers and nonprofits. At Ent, Rivermark, and Verity, ALICE data has become a core tool for understanding local community needs and shaping strategic investments.
In Colorado, Ent Credit Union helped fund the state’s first ALICE Report, conducted by United Way, because the findings could inform a smarter, more compassionate investment strategy. That data has since shaped strategic priorities like childcare and housing. Recent commitments include $225,000 to Early Connections Learning Centers, $250,000 to Hunt Family Housing, $100,000 to the Loveland Youth Campus, and a multiyear $1 million attainable housing initiative with WeFortify. ALICE insights also inform Ent’s financial coach training, helping staff understand the difficult choices households face and respond with empathy and flexibility.
In Oregon, Rivermark Community Credit Union has used ALICE data to destigmatize financial challenges and better understand the lived experiences of households below the ALICE threshold. Approximately half of Rivermark’s members and staff fall below this threshold, highlighting that this is not a “them” issue but an “us” issue. Rivermark partnered with a philanthropic foundation to conduct ethnographic research with ALICE households, revealing insights that shaped six guiding principles for financial wellness programs, emphasizing trust, short-term achievable goals, simplified communication, and member-centered solutions. These principles guide offerings such as low-threshold membership, small-dollar loans, community impact loans, credit-building loans, Bank On checking accounts, partnerships with social service platforms like Unite Us, and employer-partnered programs.
Washington-based Verity Credit Union has strategically woven ALICE data throughout its Community Development Financial Institution (CDFI) approach, and this data-driven strategy has yielded significant results across multiple areas. The credit union's fee restructuring demonstrates immediate member impact by drastically reducing overdraft and Non-Sufficient Fund (NSF) fees, Verity has saved members $3.32 million annually since 2023, with projected savings of $1.16 million in 2025 alone. Meanwhile, lending accessibility has expanded substantially: loan approval rates for underserved individuals have increased by 25% through Zest AI implementation, and over 64% of Verity's lending now supports low-to-moderate-income communities in securing funding for families, homes, and businesses. Beyond individual financial services, Verity has made community investments in affordable housing through partnerships with projects like Cooper Way, Corvidae Limited Equity Co-op, and Astra Apartments, leveraging over $20 million to create 560 affordable homes that directly address the housing crisis. The credit union further strengthens long-term financial stability for households below the ALICE threshold through targeted investments in micro-business lending, microgrants, and culturally relevant nonprofit partnerships.
Across the country, credit unions are using data-driven insights like ALICE to invest in solutions that build stability and opportunity. As part of Backbone, a coalition of credit unions, Ent, Rivermark, and Verity are proud to collaborate with and work alongside our peers who are also committed to this work, proving that, together, credit unions help build stronger, more resilient communities where more people have the chance to thrive.
