Understanding the Nuance of Women’s Financial Needs
When we take the time to understand our members, we can nurture them in both their dark moments and bright spots. As credit unions, we have the responsibility to support members through life’s challenges and give them the power to dream bigger than their circumstance.
Without financial security, people must live in survival mode. Unfortunately, financial inequities tend to reflect societal inequities, with women disproportionately facing significant barriers to financial security. These inequities are deeply rooted in societal expectations and cultural norms that often position women as primary caretakers, reinforcing beliefs that can limit women’s economic opportunities and career advancement.
For instance, women tend to earn less than men, with U.S. Census data showing that women earn 82% of what men earn. The wage gap is wider for women of color, with Black women earning 64 cents and Latinas 54 cents for every dollar earned by non-Hispanic white men.
These disparities highlight systemic issues that impede women’s economic empowerment, and they are perpetuated when women do not have a voice in the board room.
In 2023, a national milestone was reached when women CEOs outnumbered CEOs named John. Considering men named John represent only 3.27% of the U.S. population, this underscores the persistent underrepresentation of women in top leadership roles. Because of the disparities disproportionately impacting women, the presence of female leadership at Community Financial Credit Union (Community Financial) is both important and unique, with both a female CEO and board chair.
Leveraging our diverse perspectives and our superpower of listening, we advocate for financial equity through programs that specifically address the concerns of our members, even the concerns that others aren’t willing to talk about.
Nationwide, people are being driven to financial insecurity through “nuisance fees,” such as payday loans, NSF fees and overdraft fees. Women, particularly single women, women with children, Black and Hispanic women, and those earning less than $60,000 per year, are disproportionately affected by such fees.
As a response, Community Financial launched CloseEnuff™, Michigan’s first checking account of its kind. CloseEnuff™ boldly eliminates nuisance fees by offering robust overdraft protection, early access to direct deposit funds and more.
Additionally, having female voices on our executive team has helped us reach women in their darkest moments, including instances of financial abuse. With up to 99% of domestic violence cases including economic abuse and 3 in 4 women staying with abusive partners due to economic abuse, Community Financial is committed to breaking this cycle of vulnerability that causes many survivors to stay in or return to harmful situations.
Community Financial’s Choose the Bear™ initiative underscores our commitment to addressing economic abuse and assisting survivors in reclaiming their financial independence. Developed in collaboration with First Step, a leading nonprofit agency specializing in services for victims of domestic and sexual violence, Choose the Bear™ aims to provide survivors with emergency financial assistance to facilitate their exit from abusive environments. It includes specialized financial services, such as the CloseEnuff™ cash flow boosting checking account, designed to rebuild financial autonomy and credit, and a compassionate team of trained professionals offering unwavering support throughout a survivor’s journey.
By nature, credit unions are uniquely positioned to design all programming around the member experience. With this, we hold a power to protect members from inequities. The more representation you have in executive leadership, the more nuance you have in creating solutions for your members.
As we look to the future, the urgency of closing the equity gap and supporting women’s financial independence remains paramount. By continuing to lead with purpose and empathy, Community Financial and other credit unions can help create a world where financial equity is a reality for all.
Authored by Tansley
Stearns, president & ceo at Community Financial Credit Union