Major Foundations Back First-of-Its-Kind Credit Union for People With Disabilities
A first-of-its-kind credit union designed specifically around the needs of people with disabilities is in development. Artichoke Credit Union is being created by the Ford Foundation, the John D. and Catherine T. MacArthur Foundation and the Robert Wood Johnson Foundation, and it is set to open next year as a sub-brand of the Michigan State University Federal Credit Union, based in East Lansing, Mich.
The new institution will offer checking and savings accounts, certificates, personal loans, and credit and debit cards. Unlike other financial institutions, it will focus on accessibility, offering specialized financial education, inclusive product design, guardian access options and other features intended to serve people with disabilities along with their families, caregivers, advocates and the organizations that support them. Membership is expected to cost $5 when sign-ups begin next spring, and deposits of up to $250,000 will be federally insured through the National Credit Union Administration.
The credit union takes its name from Ed Roberts, a pioneer of the disability rights movement. After contracting polio at 14, Roberts said a doctor told his mother he would be a “vegetable” if he survived, and he later recalled deciding “to be an artichoke — a little prickly on the outside but with a big heart.”
The Ford Foundation said research by the Financial Health Network found that people with disabilities often encounter barriers to banking, including high fees, limited access to low-cost credit, complications created by asset limits and low awareness of ABLE accounts. That research also indicated banks are frequently unfamiliar with the needs of people with disabilities and do not actively seek out the customer base.
“A thriving democracy depends on economic inclusion, yet millions of Americans with disabilities cannot access the financial tools needed to build assets and secure their independence,” said Heather Gerken, president of the Ford Foundation. She described the new credit union as designed by and for the disability community.
April Clobes, president and CEO of the Michigan State University Federal Credit Union, said her institution was among the first to offer accessible ATMs and has a track record of other inclusive efforts. “As we serve more than 400,000 members, we remain committed to meeting each individual where they are and creating experiences that empower financial independence,” she said. The credit union is expected to begin signing up members next spring ahead of a full launch next year.