Introduction to Diverge Proposed FCU – Financial Inclusion for Returning Citizens and their Families

Credit union history and principles are rooted in helping underserved communities and advancing cooperation among cooperatives. But even in 2023, there are large groups of people who are not well-served by existing credit unions or other financial institutions and fintechs.

Discrimination in financial services is a significant problem for formerly incarcerated individuals, and especially impacts people of color and women. The lack of a valid form of identification, poor credit history, prior banking problems, or simply having a criminal past, can prevent people from opening even a basic checking account.  Millions of returning citizens are unbanked and credit invisible, forcing them to rely on high cost, often predatory, alternatives, such as check cashers and payday lenders. Opportunities to save, build credit, and achieve long-term financial security are limited. This greatly affects successful reentry into society and contributes to the high rate of recidivism in this country.

The organizing members of the proposed Diverge FCU are committed to changing this narrative. The mission of Diverge Proposed Federal Credit Union (PFCU) is to provide a financial home for returning citizens and their families, offering access to safe, affordable products and the financial education people need to achieve financial stability and economic mobility. In this webinar, Nancy Eiden, Founder of First Step Alliance and Tom O’Shea, former CEO Aspire FCU, will provide an introduction to Diverge, including why a new credit union dedicated to system-impacted individuals is needed and how credit unions can help support its formation. The credit union will be located in New Jersey, and First Step Alliance, a New Jersey registered 501(c)(3) non-profit organization, is an NCUA-approved Membership Association.

Why should the credit union movement support Diverge?

• It benefits all credit unions to have a vibrant, diverse, and growing movement where all consumers can find their financial home.
• Diversity, equity and inclusion is more important now than ever. Millions of people are unbanked – be a part of ending systemic discrimination in financial services.
• Help reduce recidivism. Everyone deserves a second chance, and access to affordable banking services is an integral part of successful reentry.
  
  

In a recent press release, Kyle Hauptman, Vice Chairman of the NCUA stated, “I’d like to commend the team behind Diverge PFCU’s charter application. Their concept is an example of true financial inclusion, and it’s also an example of why reforming NCUA’s chartering process is one of my top priorities.” Join us in learning more about Diverge and how you can support this new credit union charter.