In a town in Alabama, the local banks’ departure has left many people without fundamental financial services. But it’s not just about losing access to banks; it also means losing local investments, financial role models in schools, and protections for the community’s vulnerable members.

Thankfully, credit unions in Alabama are stepping up to fill these gaps. Their mission— “people who support people”— highlights how they not only provide essential services but also invest in the community.

With help from the Credit Union Impact Foundation, a nonprofit aimed at strengthening credit unions and the communities they serve, credit unions across the state are expanding their roles as partners, educators, and problem-solvers.

In 2024, credit unions in Alabama received over $82,000 in grants from the foundation to support financial education programs, enhance infrastructure, boost cybersecurity, and support their staff. These initiatives are part of a broader commitment to engage with Alabamians where they are and create lasting local impacts.

Here, we explore some notable achievements from the past year.

Boosting financial literacy and community education

Financial literacy is a significant issue in Alabama, ranking among the lowest in the nation according to Wallethub’s 2024 Financial Literacy Survey. Credit unions are utilizing foundation funds to tackle these challenges through various community-driven approaches.

For instance, they host Financial Literacy Lunch sessions, which offer workshops designed to help adults gain confidence in budgeting, debt management, and savings. These sessions are open to the public and are hosted by credit unions like Alabama One and Redstone Federal Credit Union, reaching a wide range of audience including real estate agents and farmers.

Credit unions have also created focused financial education programs for young people in Alabama. Although personal finance is now a required subject in high schools, it doesn’t cover all that young people need for real-world financial decisions. To address these gaps, credit unions are leveraging resources from A real-life program. This app-based simulation, designed by the Richard Miles Johnson Foundation, gives teens a realistic perspective on budgeting and financial choices. In 2024, the program benefitted nearly 2,000 Alabama students, with participants reflecting a 15% boost in financial confidence and improved money habits.

For older adults, who are often targets of financial fraud, one credit union took an innovative approach. With foundation funding, they organized dinner theater events that combined real victim testimonies with insights from financial experts and law enforcement. Following a successful launch, they’re considering bringing these events to senior centers and churches throughout Alabama, illustrating how credit unions can connect with and support seniors.

These efforts represent the ongoing commitment of credit unions. They aim to provide practical education that builds financial trust at all life stages.

Enhancing operational resilience

Besides community programming, many credit unions utilized foundation funds to bolster their internal operations, strengthen systems, and invest in their workforce.

Some of these grants supported crucial infrastructure improvements, including:

• Upgrading outdated equipment like computers and scanners,
• Redesigning websites to support rebranding,
• Improving collection systems for better tracking,
• Providing cybersecurity training to protect staff and member data,
• Launching and promoting new check and debit card services.

As cyber threats targeting smaller financial institutions increase, these investments are vital for safeguarding member data and maintaining public trust.

Some credit unions have also used foundation funds to establish a groundwork for future growth. One enlisted a dedicated grant writer to pursue CDFI funds aimed at enhancing digital banking access, increasing loan opportunities, and advancing financial literacy. Others are investing in community activities focused on strengthening local ties, particularly in underserved neighborhoods. These strategies will enable credit unions to effectively serve their communities even amid challenging economic conditions.

Besides systems and strategies, the people behind them are crucial. In 2024, the Foundation Grant supported the certification of 19 credit union employees as financial counselors, expanding access to personalized guidance on budgeting and long-term planning. Such support is most effective when offered by trusted, trained individuals who are deeply connected to their communities.

Continued investment imperative

The Credit Union Impact Foundation was set up to empower credit unions in their mission to serve and strengthen communities. This initiative is making significant strides in Alabama.

Foundation support has assisted a diverse range of individuals, from students to seniors, in obtaining financial education, improving credit union management, training staff, and connecting with new members through valuable services. Each of these efforts reflects how credit unions strive to make a meaningful impact daily.

Ongoing investment from credit unions is essential for sustaining these endeavors. Supporting the foundation means contributing to stronger credit unions and brighter financial futures for everyone involved.