Credit Unions Added Over 27.4 Million Potential New Members In
Underserved Areas Across America in 2004
Chairman Johnson commends efforts to make a difference for the many left unserved by traditional financial institutions
Alexandria, VA, January 24, 2005 -- America’s federal credit unions continue their record setting pace to reach out to those left without financial service in moderate and low-income communities across the country with over 27.4 million potential new credit union members added in 2004, according to National Credit Union Administration (NCUA) statistics.
NCUA data indicates that 139 federal credit unions adopted 240 underserved communities with 27.4 million residents between January and December 2004. Texas lead the way by adding 4.98 million potential members in 27 designated underserved areas across the state, while New York added 37 designated underserved areas that will enable over 1.7 million potential members to take advantage of affordable financial services.
“I applaud credit unions hard work in making the dream of financial self-sufficiency a reality for many previously left to make ends meet with payday lenders, pawnshop loans and check cashing fees,” said NCUA Chairman JoAnn Johnson. “NCUA’s streamlined application process epitomizes the agency’s Access Across America initiative that acts to enhance and create economic empowerment for Americans from all walks of life.
In the last four years, 697 federal credit unions have adopted 1,215 underserved areas, totaling 92.1 million potential members.
“Year after year credit unions step up to meet the needs of their members and communities,” Chairman Johnson said. “NCUA will continue to support and facilitate expansion that provides financial service to low-income and underserved communities. I encourage credit unions to evaluate their long-term business plans to consider if adopting an underserved neighborhood or community can fulfill both their financial and philanthropic goals for the future.
“NCUA’s Access Across America initiative has enabled the nation’s credit unions to take unprecedented steps in providing economic empowerment opportunities in well over a thousand communities, many lacking sufficient access to affordable financial services,” Chairman Johnson said. “Now it is the responsibility of the residents within these communities to take advantage of this opportunity. I encourage credit unions that have stepped forward to ensure that those eligible within these communities are made aware of the many benefits of being a credit union member and joining the mainstream financial sector.
Chairman Johnson also noted that NCUA’s faith-based credit union initiative resulted in 36,880 more Americans having access to faith-based credit union services as a result of these institutions adopting underserved neighborhoods in close proximity to their locations. Since 2002, over 736,880 residents have been made eligible to be served by a faith-based credit union.
Underserved Reports can be found at www.ncua.gov/ReportsAndPlans/AcccessAmericaRpt/AccessAmericaRpts.htm.
The National Credit Union Administration is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 83 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
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