Veridian Credit Union selected to lead a Racial Economic Equity Incubator

February 21, 2023

WATERLOO, Iowa (February 21, 2023) – Filene Research Institute, an independent cooperative finance think tank based in Madison, Wisconsin, has selected Veridian Credit Union to lead a Racial Economic Equity (REE) Incubator in Waterloo, Iowa. It’s one of eight incubators Filene is organizing across the U.S. in collaboration with Urban Strategies, Inc. and Native Women Lead to close the racial wealth gap. The Veridian-led incubator will focus specifically on closing gaps in homeownership and access to consumer lending with existing community partners in Waterloo, including Iowa Heartland Habitat for Humanity, 24/7 BLAC and House of Hope.

“Credit unions – members of whom represent 18-22% of U.S. households – can play an important role in the push for racial equity by providing equitable, accessible and inclusive financial products to U.S. families,” said Josh Sledge, senior director of incubation at Filene Research Institute. “Designing with – not for – communities of color is critical for ensuring products and policies are non-extractive. REE Incubator partnerships and the insights that come from their work will create a roadmap for others seeking to create lasting, structural change from the ground up.”

According to the Federal Reserve’s 2019 Survey of Consumer Finance, white households hold 86.8 percent of overall wealth in the country, though they accounted for only 68.1 percent of households in the survey. By comparison, Black and Hispanic households hold only 2.9 and 2.8 percent of wealth, respectively, while accounting for 15.6 percent and 10.9 percent of the U.S. population respectively. Data reflects that wealth in the U.S. is disproportionately skewed toward white households.

Veridian has historically worked with each participating organization individually to provide staff, funding and other resources for various programs. The credit union applied to Filene for the chance to lead an incubator in 2022, and the application was formally approved in January.

“We know that homeownership is one of the most significant tools allowing consumers to maintain financial stability and achieve long-term financial success,” said LeKeisha Veasley, Veridian’s community inclusion strategist. “The Cedar Valley is fortunate to have several strong organizations and passionate leaders working to address racial disparities in homeownership and access to credit. That gives us a great opportunity to coalesce our efforts for efficiency, effectiveness, and a chance at making a replicable recipe that could also be impactful in other communities.”

Incubator participants will explore new and existing strategies in programs like Iowa Heartland Habitat for Humanity’s Blueprints, 24/7 BLAC’s Project HOME and House of Hope’s Driving Hope, as well as study other ways to move the needle in advancing economic equity. The REE Incubator is expected to take place over the next two years.

 

About Veridian Credit Union

Veridian Credit Union, founded in 1934 in Waterloo, Iowa, is a not-for-profit financial cooperative owned by its members. The credit union offers a full range of business and consumer financial services with 1,000 employees and 30 branches across Iowa and eastern Nebraska. For more information, visit veridiancu.org or call (800) 235-3228.

About Filene Research Institute

Filene Research Institute strengthens organizations through innovative research and incubation to improve consumer financial well-being. As an independent cooperative finance think tank, Filene’s membership network connects a community of leaders and bright minds to change lives through innovation, truth and cooperation. In addition to delivering cutting-edge, actionable academic research, Filene also provides incubators to test and scale solutions, events to spark organizations into action and advisory services to help accelerate and implement innovation. For more information, visit. filene.org and @fileneresearch.