The 352,000-member, $3.3 billion Redstone Federal Credit Union has launched a CUSO-owned subsidiary check cashing firm aimed to both serving unbanked consumers’ immediate financial needs as well as influence them to join the credit union.
“For the nearly four out of 10 Alabamians who do not use traditional banking organizations, Right Choice Money Services offers a welcome and competitive alternative,” said Joseph Newberry, the Huntsville-based credit union’s CEO. “Right Choice is not only good for the consumer; it’s good for the community. And Right Choice is the right thing to do.”
The credit union cited an FDIC survey from September which reported that almost 193,000 Alabama households did not have a checking or savings account in 2011 and that nearly 40% of all households in Alabama use alternative financial services, such as check cashers or payday lenders.
The proportion of households that used such services in the last 12 months increased in Alabama and seven other states around the country, Redstone added.
Right Choice Money Services is different from its competitors because it offers its customers a pathway to traditional savings and credit products through its partnership with Redstone, the credit union said.