President Message
Wise Winnings and the Credit Union Advantage
CUBFI did something really cool this week. Wait. What’s a CUBFI?
Credit Unions Building Financial Independence (CUBFI) is the charitable arm of the League with a mission to serve Connecticut residents and communities by helping them build and maintain independence through assistance initiatives, financial education, professional development programs, and helping credit unions to do the same. CUBFI also works with partners to help consumers become financially capable through credit unions. CUBFI is a catalyst and a resource for credit unions to help consumers build assets and achieve financial independence.
In this way, the League’s charitable foundation adds value to all credit unions. For example:
CUBFI advances the credit union purpose by delivering high-quality financial education to underserved and overlooked populations, such as Financial Reality Fairs which have served more than 35,000 CT high school students.
CUBFI also promotes professional development through scholarships to the National Credit Union Foundations’ development educator (CUDE) program.
And CUBFI has continued to innovate and grow against the headwinds of a global pandemic. For example:
CUBFI developed and delivered a financial education program to incarcerated people on the cusp of reentry.
CUBFI executed a bold plan to help credit union employees obtain their FiCEP certification as a certified financial counselor. The more certified financial counselors that are deployed through Connecticut Credit Unions, the more we distinguish ourselves from traditional financial institutions. To put it more simply, this plan is turning the Credit Union Difference into the Credit Union Advantage.
But here is where things get really cool:
On Monday of this week (August 15), CUBFI and the Connecticut Lottery Corporation announced a first-of-its-kind partnership called Wise Winnings. To mark the occasion, Lieutenant Governor Susan Bysiewicz joined us at Franklin Trust Federal Credit Union in Hartford’s North End. Franklin Trust, established in 1934, served area educators and a select handful of companies in Hartford until 2013, when it obtained a community charter and expanded its field of membership to all of Hartford County, Connecticut. We have already fielded inquiries from other states about replicating the program, and we are ready to collaborate!
ABOUT WISE WINNINGS:
Wise Winnings is a program that will encourage and help people winning prizes over $600 make responsible financial choices with their windfall. The League is grateful to the CT Lottery for choosing CUBFI as its partner to help this overlooked population improve their financial well-being. As Wise Winnings matures, we see more potential for future innovation, such as finding ways to help winners avoid costly check cashing services or predatory financial services. For some sense of scope, in FY22, the Connecticut Lottery paid $270 million in claims of $600 or higher to 30,000 people. But only 30 of those claims exceeded $500,000.
The four pillars of Financial Well-being are:
By intervening at the moment of claiming the prize, Wise Winnings seeks to help people with Capacity – the ability to absorb a financial shock. A sudden windfall can cause just as much financial shock as sudden debt. And financial shock leads to financial stress. The American Psychological Association reports that financial stress is a leading cause of unhealthy behaviors such as smoking, substance abuse, and excessive gambling or overextending credit balances.
When a prize winner turns to a credit union for advice, we have an opportunity to demonstrate the Credit Union Advantage by addressing the remaining three pillars of Financial Well-being: Control, Choice, and Goals.
And CUBFI (through our very own financial education superstar, Dave Hinchey) laid all the groundwork for this possibility in the middle of the COVID pandemic by identifying the potential competitive value that FiCEP-trained counselors provide to Connecticut’s Credit Unions, and by launching a bold initiative that has put nearly 100 people into the certification process. Contact Dave to learn more about scheduling and funding for FiCEP training.
As always,
Bruce
