WASHINGTON—CU Student Choice said it expanding beyond its student lending roots with the launch of Employer Choice, a payroll-integrated platform the company said is designed to help credit unions deliver credit and savings solutions to workers facing increasing financial stress, according to a statement from the organization.
The program comes as many workers struggle with unexpected financial challenges, according to CU Student Choice which roughly 60% of workers experience a financial shock each year, with more than half lacking enough savings to cover a $1,000 emergency expense. As a result, many turn to high-cost borrowing options such as payday loans, paycheck advances and title loans, the company said.
“Across the country, workers are facing growing financial pressure, and employers are seeing firsthand how that impacts productivity, retention, and overall well-being,” President and CEO Scott Patterson said in a statement. “For nearly two decades, we’ve helped credit unions build and scale specialized lending programs, and with Employer Choice we’re bringing that expertise to financial wellness benefits.”
18 Months of Development
The Employer Choice platform has been in development for 18 months with input from a steering group of 16 credit unions representing a combined $70 billion in assets and more than five million members, the organization said.
The platform connects credit unions directly to employees through employer payroll systems, allowing borrowing, repayment and savings to occur within workplace benefits programs, CU Student Choice said.
“Just as employers offer health insurance and retirement plans to support long-term well-being, there’s an increasing need to support employees’ financial stability,” Doug Farry, SVP with Student Choice and director of the Employer Choice platform, said in a statement. “We are bringing credit unions into that equation, enabling them to deliver transparent financial solutions through the workplace and creating a powerful member growth channel in the process.”
Small-Dollar Loans
CU Student Choice said the platform includes a small-dollar loan product designed as an alternative to payday lending. The loan does not require a traditional credit score check and instead uses employment-based underwriting factors such as job tenure, income stability and employer characteristics.
The one-year term loan is structured to provide access to emergency funds while enabling automatic repayment and offering borrowers an opportunity to build or improve their credit over time, according to the organization.
In addition, the platform is expected to roll out payroll-linked savings in the coming months, allowing employees to automatically build emergency funds through direct deposits into accounts at participating credit unions.
One Early Adopterhttps://clicks.thecredituniondaily.com/form/IFB-67c1df50dbce13-48353883
San Antonio-based Credit Human Federal Credit Union, an early adopter of the platform, said the offering aligns with its mission to serve working families.
“Employer Choice is a new way to solve an old problem—connecting credit unions with working people at the moment financial help is most needed,” CHFCU President and CEO Steve Hennigan said in a statement. “By delivering responsible solutions through employer channels, we can reach employees earlier, reduce reliance on high-cost lenders, and welcome new members in a way that supports long-term financial stability.”
