The National CU Foundation, in partnership with Filene Research Institute, announced a product incubator for Non-Prime Auto Loans with 14 credit unions, including Soo Coop CU in Sault Ste. Marie.
“Credit unions have a long history as being the proving ground for consumer-centric, innovative financial products,” said Cynthia Campbell, director of innovation labs at Filene, “and partnering with the NCUF to test the viability of Non-Prime Auto Loans with mainstream financial institutions was a natural fit since their experience in working with low-to-moderate income consumers is extensive.”
Eighty-eight percent of Americans drive to work. Without a car, options for work, food, childcare and healthcare become limited. Economic mobility is strengthened through the mobility that comes with affordable, reliable wheels. This product increases access to affordable auto loans to those who have credit challenges.
“Estimates say that families can increase their income by as much as 25 percent with access to reliable transportation,” NCUF Executive Director Gigi Hyland said. “We’re excited to work with not only Filene on this project but also such a wide array of credit unions across the country to give affordable, safe and reliable used cars to those that need them most.”