Authors: Pogge, Jean, and Ayala, Maria
Summary
The report described how community development credit unions are a creative and democratic tool which low-income communities can use to increase the availability of financial services. They provide neighborhood residents with the means to satisfy immediate financial needs which would otherwise not be served. The innovative ways in which the North Side Community Federal Credit Union has used its resources also point out the great potential which this type of credit union has in fostering economic development in low-income urban neighborhoods. By linking up with other local institutions such as community-based organizations and schools, the North Side Community Federal Credit Union has increased the neighborhood’s ability to address some of its social and economic problems. Through its lending it has strengthened the neighborhood’s economic well-being. As the North Side Community Federal Credit Union’s case also shows, the lack of resources available to credit unions in low-income areas imposes limitations in how much they can do in their communities and how soon they can have a sizable impact. Limited resources impose not only economic but also organizational and educational constraints.
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