The Austin neighborhood on Chicago’s West Side, home to nearly 100,000 residents, has long been a financial services desert. For decades, its residents were forced to rely on predatory payday lenders or travel outside their community to access basic financial services. This lack of access perpetuated cycles of poverty, leaving residents vulnerable to financial insecurity. In late 2022, two organizations entered into a partnership agreement to bring a credit union to Austin. Recognizing this critical gap, CNote Impact Cash® Partner, Great Lakes Credit Union (GLCU) partnered with The Leaders Network and the Illinois Credit Union League to bring essential banking services to Austin, opening the Leaders Network Financial branch in April 2024.

A Neighborhood in Need

The challenges facing Austin were clear: with a median household income of just $38,407, many residents struggled to build savings, pay for emergency expenses, or access affordable credit. Predatory payday lenders and currency exchanges thrived in the absence of banks, charging exorbitant fees that only deepened financial hardship.

David Cherry, president of The Leaders Network, a group of multicultural, interfaith, and community leaders described the dangerous cycle: “By the time people finish paying off their [payday] loan, they’re so much in debt they’re behind on their light bills, their rent. It’s been an unmitigated disaster.” 

Credit Unions Bridging the Gap

In 2023, the FDIC reported that 4.2 percent of U.S. households—representing about 5.6 million households—were unbanked. The data revealed that unbanked rates were disproportionately higher among lower-income households, Black, Hispanic, and American Indian or Alaska Native households, single-parent households, and those with irregular income or disabilities. These findings underscore the barriers millions face in accessing essential financial services, barriers that are common in regions without sufficient access to financial services.

Data from the Federal Reserve Bank of Philadelphia underscores the importance of credit unions in addressing some of these challenges. Credit unions, which account for only 21% of banking branches nationwide, have eliminated 36% of banking deserts by opening new locations. 

GLCU exemplifies this credit union commitment. With assets of $1.4 billion and over 81,000 members, the institution stepped forward to partner with The Leaders Network to bring a financial lifeline to Austin. This collaboration reflects shared values of financial empowerment and community development, critical to addressing the systemic inequities that perpetuate financial exclusion.

“We’re going to initiate a new day and a new way of conducting financial transactions on the West Side,” said David Cherry, grateful the collaboration was possible.

Branch Opening: Turning a New Leaf on Financial Freedom

The Leaders Network Financial branch of GLCU opened its doors on April 24, 2024, to provide Austin residents with affordable, equitable financial services. The branch offers innovative products tailored to the community’s needs, such as:

• Fast Cash Loans, which are affordable loans based on member relationships rather than credit scores.
• Credit Builder Loans: Tools to help members establish or improve their credit at no cost.
• Fresh Checking Accounts: Accessible accounts without monthly balance requirements.

In addition to accounts and loans that help members get back on their feet, the credit union offers small business loans, mortgages, home equity lines of credit, interest-bearing checking accounts, share certificates, retirement accounts, savings accounts, and other essential financial services – paving the way for financial and economic empowerment in the Austin community. 

Michelle Collins, a retired banker and Austin native who played a key role in opening the branch, emphasized the transformative potential of financial access. “When you’re investing in your home or becoming an owner, you’re building equity—and that’s wealth building for the community.”

Transforming a Community

The branch has already begun to make a tangible difference. Residents now have a safe place to deposit savings, build credit, and access affordable loans. These small but critical steps represent a significant shift for a neighborhood that once depended on high-risk financial alternatives.

Reggie Little, a business development specialist at the branch, reflected on the progress: “With us lowering the bar to a dollar to open up a savings account [or] CD, just knowing that you have a CD can give someone a sense of pride. Of course, you can grow that CD as time goes by, but we’re helping them take those baby steps.”

Looking Ahead

GLCU’s commitment to Austin demonstrates the power of credit unions to meet the needs of underserved communities, echoing findings from the Philadelphia Fed and FDIC. As financial deserts continue to persist nationwide, credit unions like GLCU are proving essential in reversing the trend and providing equitable financial access.

As David Cherry aptly stated, “Let’s make Austin this shining example of what is possible.”

*CNote Group, Inc. is not a bank, a credit union, or any other type of financial institution. CNote is not a registered investment advisor with the Securities and Exchange Commission (SEC) or a broker-dealer authorized by the Financial Industry Regulatory Authority (FINRA). CNote is not a legal, financial, accounting or tax advisor. CNote does not negotiate interest rates. Impact Cash is not a security or investment. Impact Cash® deposits are insured by the FDIC or NCUA, subject to the terms and conditions of the Impact Cash® agreements. We encourage you to consult with a financial adviser or investment professional to determine whether or not the CNote platform makes sense for you.This information should not be relied upon as research, investment or financial advice. This material is strictly for illustrative, educational, or informational purposes and is subject to change.