How American 1 Helps The Homeless Get Back On Their Feet

A partnership between the Michigan-based credit union and a local shelter is changing lives and gradually expanding to other parts of the state.

A partnership between American 1 Credit Union ($670.2, Jackson, MI) and a local homeless shelter has changed lives in the credit union’s hometown and is gradually expanding to serve unhouse people in other parts of the state.

Carolyn Duncan, American 1 Credit Union
Carolyn Duncan, Chief Member Experience Officer, American 1 Credit Union

Financial wellness is a key component of American 1’s mission, and the credit union’s communications team includes a three-person team exclusively focused on that topic. In mid-2023, credit union leadership elected to bring those services to the Jackson Interfaith Shelter.

“This is obviously a true underserved community,” says Carolyn Duncan, American 1’s chief member experience officer and member of the shelter’s board of directors. “We look at it as someone has hit an unfortunate path on their journey. That’s how the shelter functions. When you walk into that building, the first thing you see is the word ‘Hope.’”

According to Duncan, the relationship between the two entities is built on shared core values and a shared sense of service.
American 1’s partnership with the Jackson Interfaith Shelter wouldn’t be nearly as successful without the right people in the right roles. Read more in “ American 1 Promotes Financial Wellness From Shelter To Stability.”

CU At The Shelter

The relationship began by Duncan simply asking the shelter’s CEO how the credit union could support residents there. The initial plan was to provide shelter clients with financial education, but it quickly became apparent financial resources of any kind weren’t easily accessible for many clients.

The credit union started by offering on-site financial wellness classes four times per month, with sessions in the morning and evening to accommodate residents with first- and third-shift jobs. Soon after, Drive Staffing, a firm founded by a retired manager at the nearby Martinrea manufacturing plant, began hosting weekly job fairs at the shelter. Drive Staffing offers jobs on the spot to shelter residents and provides transportation to and from the plant. It also helps employees find work-appropriate clothing and more.

As shelter residents work with Drive Staffing to start their jobs at Martinrea, American 1 staffers work with shelter residents to ensure they understand the importance of having a safe, insured place to keep their money once they start earning a paycheck.

“A lot of these clients were using CashApp or Venmo or other apps that weren’t necessarily secured, or they would put money on pay cards and come into our branches or other financial institutions in the area to make withdrawals,” says financial wellness manager Collin Martin. “Budgeting for them has always been a struggle, so we’re eliminating that issue by getting them a banking account they can use to budget and track their spending.”

To make things even easier, the credit union’s mobile banking unit — a 60-foot RV that  includes two loan officer stations and two teller stations — is on-site once per month to open accounts for shelter residents. What’s more, American 1 always schedules these visits to align with when representatives from the Michigan Secretary of State’s office are on hand to help residents with legal ID cards.

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“Now they have a valid ID and a bank account,” Martin says. “They have everything they need to start working, deposit their paycheck, track their spending, and continue that financial education.”

To spread financial wellness as much as possible, American 1 provides individual financial coaching for all shelter clients, regardless of whether they bank there. That includes how to start a budget, track spending, and manipulate a budget over time as needs change.

Building Trust

Many clients at the shelter were initially apprehensive about the credit union’s presence there. One former member whose account had been charged off needed extra reassurance that the credit union was there to help, not to nag her about the old loan. But over repeated visits, she and others gradually got comfortable with the credit union.

Collin Martin, American 1 Credit Union
Collin Martin, Financial Wellness Manager, American 1 Credit Union

“We’ve built a relationship with leaders at the shelter, and they’ve advocated for us and let clients know we’re there as a resource and not just someone trying to get their money,” Martin says. “Now they love it when we come out. We see them on the street every once in a while, and they know us. The stigma behind a financial institution coming to the shelter to collect debts has been diminished.”

Since mid-2023, more than 150 people have attended the credit union’s classes at the shelter, and 36 have opened accounts with American 1. Credit union staff work with residents to help determine the best product, whether that’s a savings account, a traditional checking account, or an account with overdraft protection and other safeguards. One client who worked with the credit union even recently closed on the purchase of his first home.

Expanding Partnerships

Although American 1 has earned plenty of credit for its work, Duncan is quick to note the shelter played an equally crucial role in the program’s success.

CU QUICK FACTS

AMERICAN 1 CREDIT UNION
HQ: Jackson, MI
ASSETS: $670.2M
MEMBERS: 66,032
BRANCHES: 18
EMPLOYEES: 278
NET WORTH RATIO: 14.2%
ROA: 0.85%

“It did a good job of vetting us to understand our purpose coming in,” she says. “One thing about American 1, we’re not about showing up with a media crew; we’re about showing up with our resources. I think it was that ability to build the relationship that made it a success. The other thing I’ll call out is that the shelter has a lot of partners in the community, and those partners all look carefully at how we can build on one another.”

As the partnership evolves, American 1 is looking for additional ways it can serve residents since it can’t be on-site all the time. One project in the works is a resource packet with financial education basics for shelter staff to provide residents when American 1 isn’t available.

Even better, the credit union is expanding its outreach with this community. American 1 has begun to partner with homeless shelters in other communities it serves and aims to provide the same level of resources to each shelter. The latest expansion is to provide classes and bring the mobile banking unit to Share the Warmth of Lenawee, a shelter in Adrian, MI, about 45 minutes southeast of Jackson.

“This community is an underserved niche market,” Martin says. “It was a no-brainer that this is where we should invest resources. These are the people who need it most. We’re meeting these clients on their worst day.”

January 27, 2025
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