Robert Cashman

Over the past several years, consumer spending and behavior has continued to evolve, leading to significant changes within the financial services industry. Just like gas, electricity, eggs and flour, banking is a commodity – and consumers have more options now than ever before on how and where they’ll manage their money.

As such, there’s been a race among banks and credit unions to keep up with the competition and meet the evolving needs of consumers, ramping up digitization and automation efforts, learning how to effectively use AI and mitigating risk in a society ladened with fraudsters and scammers. Some financial institutions have survived, while others have failed – and some have merged with other banks and credit unions to increase assets and expand overall customer and/or membership base.

Regardless of the changing landscape, the number one priority for all financial institutions today should be how to help members improve their financial wellbeing and reach their goals – whether it’s buying a house, furthering education or building up retirement savings.

Mass. Is in a Tough Place

Unfortunately, there are many challenges consumers face as they work toward achieving these goals, especially here in Massachusetts where the cost of living is 46 percent higher than the national average.

With rent and mortgage payments encompassing almost half of one’s earnings in Massachusetts, it is becoming increasingly harder – and in some cases impossible – for residents to save. Without leaning on a parent’s savings, many children won’t be able to attend college or university without going into major debt, if they’re able to attend at all – an undesirable entrance into adulthood with studies showing that a college education contributes to lifelong higher earnings.

And even if a person is fortunate enough to complete their degree and find a job after graduation, college grads are often faced with exorbitant education loan payments, prohibiting them from buying a home or saving long-term for retirement, creating an unfortunate and vicious cycle for future generations.

Because of all this, the current economic landscape in Massachusetts is suffering.

Many people are migrating out of the state, moving to where the cost of living is more affordable and there is more of an opportunity to save for financial goals. Additionally, businesses of all sizes are struggling to operate and are seeking guidance and assistance along with a legislative and regulatory environment that is welcoming and understanding. If they can’t find this kind of help, consumers and businesses alike will take their business elsewhere, and the migration out of the state will accelerate.

So, what does personal banking have to do with this?

With the odds stacked against so many of us in Massachusetts, it’s imperative to partner with a financial institution that can help navigate these challenges. Credit unions have a long history of tackling these obstacles, always taking a “people-first” approach since their inception in the mid-1800s.

People-First, Leaving No One Behind

Founded as a way for low-income workers to pool resources and enjoy the same banking benefits as their wealthier neighbors, credit unions across the world have continued to share the same philosophy. In addition to providing the same types of products and services you’d find at a bank, credit unions are also committed to helping members achieve overall financial wellbeing through individual counseling, credit building and opportunities to obtain affordable loans.

The credit union philosophy of “people helping people” ensures that no one is left behind in their journey to reach financial stability. Credit union employees work with members to devise a plan to move forward – and when noticing a trend amongst members, create products to help a larger group of people reach their goals.

For example, with rising interest rates and increasing housing prices across the state, we saw at Metro Credit Union that many of our members were struggling to buy their first homes – with the introduction of our 40-year mortgage, we were able to make becoming a homeowner a reality for more individuals.

Additionally, we recently entered the private student loan market, offering affordable loans and lines of credit so more families can send their children to college. We’re hopeful that by providing these options to our members, we’re helping to break the vicious cycle of hardship in Massachusetts and help more people reach financial wellbeing.

Local financial institutions, particularly credit unions, are instrumental in facilitate this type of change in Massachusetts so it’s important that we invest in and support local banks and credit unions as opposed to the larger national players. As we approach International Credit Union Day on Oct. 17, I encourage you to reflect on what credit unions have done for your community over the years and celebrate the ways they continue to support and give back to their members each day.

Robert Cashman is the president and CEO of Chelsea-based Metro Credit Union.