Johnson Urges Problems Be Recognized

NEW YORK CITY - NCUA Chairman JoAnn Johnson said the financial services world needs to acknowledge there is a problem in reaching the unbanked, that financial education is essential to change people's lives, and giving credit unions the opportunity to reach out to underserved areas is key to implementing change.

In remarks before was the Eastern Regional Conference on Reaching Unbanked People here, Johnson was joined by U.S. Treasurer Anna Escobedo Cabral and Treasury Deputy Assistance Secretary Dan Iannicola. Johnson discussed some of the reasons and ramifications for more than 10-million Americans being without access to mainstream financial services.

"While financial education is not the sole cure for problems facing the underserved, it is necessary for all of us in the financial services community to emphasize its significant role at every opportunity," Chairman Johnson said. "The advertising slogan 'an educated consumer is our best customer' resonates when it comes to financial literacy among the unbanked."

Johnson, a former teacher, called financial education a priority and said that financial well-being is "not based on obtaining a loan or buying a new car; rather, it is learning and adhering to basic financial principles-knowing the importance of saving, how to balance a checkbook, budgeting, and investing for the future. Financial education fosters financial stability for individuals and for entire communities."