Self-Help's Micro Branch
Self-Help Federal Credit Union has launched a pilot credit union concept, the “Micro Branch”, designed specifically around the needs of families living paycheck-to-paycheck. The Micro Branch provides relevant transaction products and services (check cashing, remittances, etc.), a convenient location and extended hours, and a familiar and supportive environment. The Micro Branch is also part of a federally chartered, federally insured credit union that offers deposit accounts, debit cards and loan products designed specifically as a critical bridge for check cashing customers into the financial mainstream!
An Innovative Branch Model Designed Specifically to Serve Unbanked Families
There are more than 100 million people in America who don’t have access to mainstream checking, savings, and credit accounts. These are hardworking families – many living paycheck-to-paycheck in under-served communities.
At best, these families get useful services from a check cashing or similar outfit, but have no easy path to the financial mainstream. All too often they are forced even further to the fringe – to payday lenders, rent-to-own stores, less reputable check cashers and pawn shops – where they pay excessive fees and can get trapped in a very destructive "debt trap". They do not develop the credit history or savings that can help them toward economic opportunity and independence.
Self-Help Micro Branch
Self-Help Federal Credit Union has launched a pilot credit union concept, the “Micro Branch”, designed specifically around the needs of families living paycheck-to-paycheck. The Micro Branch “meets these customers where they are”, providing:
- relevant transaction products and services (check cashing, remittances, etc.)
- a convenient location and extended hours; and
- a familiar and supportive environment.
Without asking them to change their behavior first, the Micro Branch meets the needs of working families today – and offers them a path towards financial stability tomorrow. It’s an exciting new form of credit union!
Products & Services
We believe the Micro Branch is ideally positioned to serve the needs of its target markets, like the largely Latino immigrant population around our East San Jose pilot branch. Its operating model includes a complete suite of financial products that are relevant to the lives of this target demographic.
- Efficient Transaction Services – Micro Branches provide check-cashing, remittances, money orders, bill-pay services and ancillary products (stamps, phone cards, etc.) that meet the needs of our community. These transaction services represent the building blocks of a long-term relationship with un-banked & under-banked consumers by building trust around products with which they are already familiar.
- Deposit-Based Checking & Saving Accounts – Micro Branches offer a check-less checking account that is designed to offer a compelling value proposition while reducing the need for fee-based transactions and the possibility of overdraft charges. The account is offered at a monthly fee that includes a debit card with picture-ID, a savings account and a discount towards transaction services.
- Access to Capital – Given Self-Help’s extensive experience on lending to families with thin or no credit, we intend to offer a full line of relevant lending products at the Micro Branch over time. As we learn and understand the behavior and needs of our members we will design and introduce lending products specifically tailored to our membership.
Convenient & Accessible
The Micro Branch service model is based on convenience, community involvement and a network of branches targeting dense, low-income neighborhoods. We will locate in shopping centers on heavy-traffic thoroughfares in order to be in the line of site of commuters who are on their way home from work. We offer extended hours, seven days a week and staff accordingly for heavy-traffic days from Friday to Sunday. Our goal is for our branches to both capture the young family who runs errands on weekends as well as on-the-go workers who can access our Micro Branches on their commute home.
Familiar & Supportive Environment
The design of our Micro Branch is an important element of our strategy. We designed the branch to feel familiar to our members – to encourage walk-in’s – and once inside the look and feel of the branch will be distinctive from mainstream banks / credit unions and check-cashers – an environment that is accessible, yet professional and secure. Our aim is to be known within the community as a credit union they can trust; a place where families get the services they need, in a comfortable setting, from people who believe in them.
