Personal finance and community wealth building can be a daunting journey. The Stepping Stones Community Federal Credit Union, the lead financial institution dedicated to serving the limited-income communities of Wilmington, strives to equip individuals and the community with the tools and information needed to build financial independence confidently and easily.
Take Stepping Stone’s 1378 Savings Challenge, inspired by programming from the Delaware Community Reinvestment Action Council (DCRAC), which teaches credit union members to gradually increase their deposits over a year.
During the first week of January, members save $1. In the second week, $2. By following this savings roadmap, participants reach the savings club’s titular goal by week 52. Throughout the year, credit union staff ask members about progress and mark milestones.
“Saving small amounts sometimes is a lot easier than just coming in with a couple hundred dollars to save,” said Blanche Jackson, Stepping Stones CEO. “And to see that at the end of the year, and know that you’ve saved $1,378 dollars, is very powerful.”
Chartered in 2011, Stepping Stones is committed to creating products tailored to the needs of limited-income individuals, differentiating itself from mainstream banking institutions, explained board chair Matthew Parks, also a vice president of Discover Bank. This past spring, Parks spoke alongside other community wealth building champions at Healthy Communities Delaware’s (HCD) Equity Action Summit. Meaningful work and access to wealth are necessary elements of the Vital Conditions for Health & Well-Being Framework for thriving people and places, which is used to influence HCD’s work.
Through a combined focus on education and community engagement, Stepping Stones supports individuals and fosters community success. Accessible loans help members incur “good debt” while the interest accrued from such loans further bolsters community wealth. Meanwhile, the credit union actively looks for ways to improve the community, such as partnering with developers to purchase properties from absentee landlords, renovating them, and converting them into homeownership opportunities.
According to statistics from the Delaware Community Reinvestment Action Council, a fifth of Wilmington residents lack adequate banking services, with an even larger portion having zero or negative net worth. Those in this socioeconomic status face potential losses of up to $3,000 annually due to exploitative financial practices such as payday lending, exacerbating their precarious financial standing.
Four key initiatives at Stepping Stones identified by Parks and Jackson centered around wealth-building efforts: advancing minority homeownership; automobile lending; assisting workforce development; and credit building.
Stepping Stones Federal Credit Union has expanded its product offerings to also include auto loans. | PHOTO COURTESY OF SSFCU
“We have members who do our credit-building process and we’ve seen credit scores increase by 70 points or more at times, by following the meetings and doing the credit-building workshops,” Jackson said.
That improved credit score could be the difference in an individual being able to secure an apartment or a vehicle, which in turn has implications for a person’s health, employment opportunities, and overall lifestyle. Through this type of wealth building, Stepping Stones is using the principle of multi–solving multiple challenges through creative, effective, collaborative solutions.
Having a reliable automobile is often essential for maintaining employment in Delaware, for example, as well as ensuring access to daycare services and other necessities. Developing automobile loan programs that encourage investment in reliable vehicles under reasonable terms and interest rates, and doing so in partnership with trusted employers, is one example of how Stepping Stones is creating products that fit the needs of its community, Parks said.
Additionally, Stepping Stones prioritizes partnerships with workforce development programs that boast a proven track record of job placement and income growth for participants, Parks said. A workforce lending partnership between Stepping Stones and Zip Code Wilmington, with funding from Discover Bank, is a prime example. It connects students from Zip Code Wilmington, a nonprofit software coding bootcamp purposely designed to be accessible and affordable to all, with Stepping Stones loans, assisting with expenses related to a 12-week software coding program and living costs. Typically such smaller loans are not offered in a traditional student loan space.
“We’re providing the funding that allows them the opportunity to go to school to get a better employment opportunity,” Parks said.
Further illustrating their unwavering commitment to accessing essential financial services is Stepping Stones’ partnership with the Delaware Department of Corrections. For the past five years, Stepping Stones has been providing banking services for individuals incarcerated in Delaware, and currently counts around 400 incarcerated individuals as members.
When individuals consider why they bank there, factors like convenience, user-friendly apps, or proximity to home likely come to mind, Parks said. However, Stepping Stones, which relies on federally insured deposits to fuel its initiatives, proposes an additional reason: Being a catalyst for positive change.
Stepping Stones sees itself as a vital asset to the community, but its success relies on everyone coming together to support it.
As Parks asked, “What better way to allow your money to work for you?”
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