Eight credit unions selected for Racial Economic Equity Incubator
Averaging $2.6B in assets, participating credit unions serve 11 states, partnering with 12 community service organizations to co-create products for BIPOC families
MADISON, WI (February 15, 2023) — Filene Research Institute in partnership with Native Women Lead and Urban Strategies, Inc. announced the first cohort of credit unions accepted into its Racial Economic Equity Incubator (REE Incubator). The REE Incubator works to advance racial economic equity through the credit union system by co-creating solutions that meet local community members’ needs and delivers resources, support, and capital to communities of color.
Over the past few years several of the country’s biggest banks have pledged more than $45.2 billion to racial justice. Yet, many of these efforts represent a small portion of the Black, Indigenous, and other families of color across the country, and are targeted toward one solution such as homeownership. The REE Incubator distinguishes itself from other financial services interventions through its model of co-creation – working with not for communities of color to ensure products and policies are non-extractive.
This year’s participating credit unions and their areas of focus are:
- Allegiance Credit Union (Oklahoma City, OK) will partner with Scissortail Community Development Corporation to expand branch presence and create relevant products and services to better serve the local Latino community, including the Hispanic-owned small business community.
- FAMU Federal Credit Union (Tallahassee, FL) will partner with Capital City Chamber of Commerce, focusing on increasing access to capital for minority- and women-owned businesses, in particular Black entrepreneurs.
- Hiway Credit Union (St. Paul, MN) will collaborate with Right Track, St. Paul’s Office of Financial Empowerment, and Youthprise to center indigenous, low-income, and racially diverse youth, developing products that go beyond financial well-being training to focus on wealth and asset-building strategies, including homeownership.
- Kaua’i Federal Credit Union (Kaua’i, HI) will partner with Hawaiian Community Assets along with local business development and leadership programs to build economic resiliency for Native Hawaiians and Pacific Islanders and low-income families. They will utilize “place-based” approaches to support housing, small business/ entrepreneurship, and financial wellness and equity.
- Marine Credit Union (La Crosse, WI) will work with its Foundation to improve homeownership rates and build generational wealth for credit-challenged populations. Finding HOME is a free financial literacy and behavior change program designed to help families that do not qualify for a mortgage achieve homeownership.
- Michigan State University Federal Credit Union (East Lansing, MI) will partner with GreenPath and programs focused on Black empowerment to address the racial wealth gap through addressing high-cost debt while building pathways to homeownership.
- Municipal Credit Union (New York, NY) will partner with The Bronx Community Foundation to create innovative programs to eradicate inequity and build sustainable futures for all Bronxites.
- Veridian Credit Union (Waterloo, IA) will work with Iowa Heartland Habitat for Humanity, 24/7 BLAC, and House of Hope to weave the organizations’ work into a comprehensive program which will improve access to affordable banking and consumer lending and build generational wealth for Black, Indigenous, Latino, and other families of color.
Expanding on Filene’s 15+ year successful track record of testing and scaling solutions, the REE Incubator will identify opportunities to test, refine and evaluate strategies to close the racial wealth gap, and develop a process map centering an equity lens. The REE Incubator provides participants with access to national experts in financial inclusion, a network of like-minded innovators to share experiences and results, and a committed team of coaches and partners to help navigate the systemic and local inequalities that credit unions face.
“Credit unions – members of whom represent 18-22% of US households – can play an important role in the push for racial equity by providing equitable, accessible, and inclusive financial products to U.S. families,” said Josh Sledge, Senior Director of Incubation at Filene Research Institute. “Designing with – not for – communities of color is critical for ensuring products and policies are non-extractive. REE Incubator partnerships and the insights that come from their work will create a roadmap for others seeking to create lasting, structural change from the ground up.”
“The Racial Economic Equity Incubator is a timely, powerful disruption to financial systems which will center co-creation that provides resources and support with community,” said Donovan Duncan, Executive Vice President for Urban Strategies, Inc. “USI is committed to closing the racial wealth gap and this partnership will begin to mend the long-standing relationship between communities of color and financial institutions.”
“Our vision is to increase access to capital through a multitude of pathways, co-creating products and services that center people who have been left out. This approach is crucial to ensuring there’s community trust, support, and activation,” said Jaime Gloshay, Co-CEO of Native Women Lead. “If we’re truly making bold steps toward racial equity, we do this by building the table with the community.”
Insights from the credit unions and their on-the-ground partners will be published throughout the year for the benefit of financial services organizations across the country. Stay up to date with the partnerships and insights that come from the innovation and pilot phase of the REE Incubator program at filene.org.
About Filene Research Institute
Filene Research Institute strengthens organizations through innovative research and incubation, on a mission to improve consumer financial well-being. With cutting-edge insights, innovative solution testing, advisory and custom support, and connections formed through events and communities, Filene helps credit unions think forward and change lives.
About Native Women Lead: Our mission is to revolutionize systems and inspire innovation by investing in Native Women in business. We do this by co-creating with and convening our community to build coalition while honoring our culture, creativity, and connections. Our core values (BEWE) reflect our understanding that Native Women are the Backbone of our communities, we are Emerging as entrepreneurs, and we are Weaving our ideas, resources, and community to manifest change while Empowering one another. For more information, visit https://www.nativewomenlead.org.
About Urban Strategies, Inc.: Founded in 1978, Urban Strategies, Inc. is a national nonprofit leader with extensive experience in implementing results-based human capital development strategies in communities that are undergoing physical revitalization. USI supports communities while working with partners to develop economic opportunities, cradle-to-college/career success, high quality health services and a range of comprehensive service supports. The organization is leading people efforts and neighborhood transformation in 24 cities and 41 neighborhoods across the nation. For more information, visit www.urbanstrategiesinc.org.
