Cushioning inflation concerns (with grace)

For the large majority of Americans, life post-pandemic hasn’t been easy. Inflation has hit families hard. The cost of groceries, everyday purchases, gas, clothing, entertainment, etc., is felt across the board. Terms such as “shrinkflation” (the practice of downsizing products without downsizing prices) and “excuseflation” (when companies raise prices and blame it on inflation) have become part of our vernacular.

The populations impacted more deeply will not surprise you. Three-quarters of Americans live paycheck to paycheck, so an unplanned expense or fee can result in significant financial setbacks. This barrier is compounded for women who face financial inequities.

With 95% of women being directly involved in their households’ financial decision-making, the financial services industry has a larger role to play in walking with women toward a brighter future. A 2023 Consumer Financial Protection Bureau report found that overdraft and NSF fees disproportionately affect women, particularly single women, women with children, Black and Hispanic women, and women who earn less than $60,000 per year. CloseEnuff™ addresses the pervasive issues of financial barriers disproportionately impacting these populations.

As credit unions, we are responsible for cushioning our members from economic disparities. But it shouldn’t stop there. We hold an incredible ability to partner with our members as they navigate life’s challenges and opportunities.

We’re being called to challenge our industry’s reliance on non-sufficient funds (NSF), overdraft (OD), and courtesy pay fees. As an industry, we’ve long discussed how important innovation is to our sustainability. Isn’t it time we deployed that perspective to find new ways to solve important problems for humans.

I’ve challenged our executive team to leapfrog our industry’s best practices because the human beings we serve deserve more. Understanding the household liquidity challenges of this moment, married with our epic team’s subject matter expertise, led us to build CloseEnuff™.

Through the introduction of CloseEnuff™, we’re helping close the gap for the two-thirds of Michiganders who identify as financially insecure while raising awareness around the importance of cash flow as consumers adapt to changing economic conditions. Innovations like this are a testament to our commitment to manifesting positive change, providing tangible relief and support to everyday Michiganders in their journeys.