Executive Summary
From lessons learned to best practices, this report includes helpful guidelines for what makes a successful ESSDL program. Credit unions that are considering an ESSDL program should work closely with their employer partners when designing a program. Each organization should be aware of the other’s role and responsibilities and should agree ahead of time on the metrics they will be using to track and measure success.
ESSDL programs, while sharing many similarities, should also take into consideration the needs of the employee borrowers. While operational and regulatory processes need to be observed, programs should be mindful of not creating unnecessary friction for borrowers. Balancing data collection with employee privacy is also key. Situating ESSDLs as part of a larger wellness or financial education program is also a helpful consideration.
Credit Union Implications
- Flexibility of ESSDL program design creates an opportunity for innovation and experimentation in meeting the needs of employee borrowers
- Can lead to higher credit union talent retention by creating a sense of efficacy and community engagement
- Enables cross-selling opportunities
- Builds new membership and can cement the credit union as a Primary Financial Institution (PFI)
This research was made possible through the generous support of the FINRA Investor Education Foundation.
