RE: Lending Pawnshop Alternative
Credit Union: Bridgeway Credit Union
Location: Phenix City, AL
Asset size: $69.9 Million
Field of membership: Multiple Common Bond
CEO: Kimberly Nichols
Located in Phenix City, Alabama, Bridgeway Credit Union (Bridgeway), the $70 million asset sized institution faced numerous challenges including limited resources and technological constraints. However, under the leadership of CEO Kimberly Nichols, Bridgeway has developed innovative, alternative lending solutions that not only meet the diverse needs of their members but also enhance their financial well-being, setting them apart from its larger banking counterparts.
Bridgeway’s commitment to serving its members led to obtaining a Community Development Financial Institutions (CDFI) certification. This achievement provided access to grants that in turn expanded their lending offerings and enhanced member services. These CDFI funds facilitated the strategic use of membership incentives like reduced fees and higher rates of interest on savings as well as making investments in advanced lending technology and digital infrastructure. By employing improved online banking services, digital tools, and mobile apps, Bridgeway has attracted a broader, more tech-savvy membership base, while enhancing the overall convenience and efficiency of their banking services.
One outstanding initiative has been the introduction of Bridgeway is the 12/24 on-time payment service. This program refinances loans for members who have made timely payments with other institutions, offering them better rates and terms. This not only helps members manage their finances more effectively but also reduces their dependency on high-interest loans like title pawning, a predatory lending practice. The credit union has also implemented a more efficient loan management system streamlining the loan application and payment processes. This integration ensures that members receive timely and efficient service, enhancing their overall banking experience.
According to Bridgeway, its focus on non-predatory, affordable lending options yielded remarkable results. Since the inception of their alternative lending programs, the credit union has seen a notable decrease in loan delinquencies. The loan portfolio grew substantially reflecting the credit union’s quality of loan products and the financial health of its members. Moreover, Bridgeway grew exponentially, from $6 million to $70 million. This growth was due in part to the successful merger with a larger credit union, which has significantly expanded their resources and capacity to serve more members.
Bridgeway Credit Union plans to continue enhancing their lending products based on member feedback and to expand their community outreach and financial education programs. With more than 8,400 members benefiting from their services, Bridgeway is set to extend its impact, fostering economic stability, and empowering more individuals and businesses to achieve financial success. Bridgeway exemplifies how small credit unions can overcome industry challenges through innovative thinking and member-focused strategies. Their commitment to providing alternative, non-predatory lending options and enhancing financial literacy has not only improved the financial health of their members but has also solidified their position as a pivotal community resource. As Bridgeway continues to adapt and grow, they remain a testament to the credit union philosophy and power of people helping people.
The above profile was curated from Bridgeway Credit Union “Lending: Pawnshop Alternative”, a submission in the Blueprints for Small Credit Union Success published by America’s Credit Unions – March 2024