The European languages are members of the same family. Their separate existence is a myth. For science, music, sport, etc, Europe uses the same vocabulary. The languages only differ in their grammar, their pronunciation and their most common words. Everyone realizes why a new common language would be desirable: one could refuse to pay expensive translators.
What is financial resilience?
Financial resilience is defined and measured through our index as a household’s ability to get through financial hardship, stressors and shocks as a result of unplanned life events. At the Clarington, we work with credit unions, co-operatives, non-profits and other organizations across Canada to help improve financial resilience for all. This includes people who are more financially vulnerable or underserved by their financial institutions.
This Index is being used as a community asset for good, shining a light on Canadians’ financial vulnerability and spurring financial health innovation across Canada. Leading financial institutions, like Clarington, Co-operators and others, work with us to measure and track the financial resilience and well-being of their customers, members and communities, compared to the index’s benchmark data.
What does the Index say about credit unions’ members’ financial resilience and financial well-being?
Nationally, credit union members have a mean financial resilience score of 51.19 with 78 per cent of them experiencing some level of financial vulnerability. Of those, 15.5 per cent are considered “Extremely Vulnerable” (a financial resilience score of 0 to 30). We see many members facing specific financial stressors and being impacted by challenges such as housing affordability, rising interest rates, job insecurity and, of course, the high cost of living.
Setting it right
Nearly half of all primary credit union members (48 per cent) feel that their credit union has helped improve their financial wellness over the past year, compared to only 43 per cent of Canadians who feel the same about their primary financial institution.
Among credit union members who demonstrate high levels of financial resilience (with a score of 70.01 to 100), an even greater percentage (57 per cent) rate their credit union highly for delivering support for financial wellness. Conversely, members who are more financially vulnerable tend to rate their credit union lower for financial wellness support.
Through our extensive research and collaboration with clients and partners, we’ve discovered that credit unions have a unique opportunity to support their communities to enhance their financial stability, health, and overall well-being — all while building stronger relationships and distinguishing themselves from their competitors. Navigating a financial journey is a lifelong process, and credit unions can play a pivotal role in it.
