Focusing on Youth Financial Wellness Helps This Credit Union Build Long-Term Member Relationships

In a Nutshell: As one of the poorest states in the U.S., Louisiana struggles to include all its citizens in the economic mainstream, with recent data reporting the state had the second-highest population without bank accounts. Pelican State Credit Union‘s novel approach to changing that focuses on products that directly benefit students and young people. By demonstrating the value of financial services to children, Pelican sets them up for long-term success. At the time of our conversation with Chief Growth Officer Leigh Porta, Pelican had grown to nearly 80,000 members strong increased its essential role as an economic energizer in its state.

Baton Rouge, north of New Orleans in Louisiana, has a proud but complex history that includes being governed by seven different nations and a well-earned reputation as a cultural melting pot.

It’s also the capital of the second-poorest U.S. state. The area around Baton Rouge displays many scenes of financial struggle and includes more than its share of individuals who, through tradition or habit, have come to regard financial services with suspicion.

Many recent national reports show that millions of Louisianans live from paycheck to paycheck. Many resort to costly payday loans to tide them over until the next cash infusion.

Many others exist outside the banking system. In 2023, the Consumer Financial Protection Bureau reported that Louisiana had the second-highest percentage of unbanked persons, at 8.1%, following Mississippi at 11.1%.

We believe financial institutions have a unique role in fighting against these trends and turning the tide toward community vitality. Baton Rouge-based Pelican State Credit Union leads the way as an institution committed to introducing more Louisianians to the benefits of financial services through credit union membership.

Like many credit unions, we learned that Pelican has a distinctive origin story. It started in 1956 as the credit union for employees at Louisiana’s charity hospitals, mental health centers, and state offices.

When we spoke with Chief Growth Officer Leigh Porta in the summer of 2024, Pelican was home to more than 500 select employer groups and managed over $700 million in assets for nearly 80,000 members.

Porta told us Pelican’s products and services cover a wide range and serve members at all income levels. However, most Pelican members are low-income and decidedly in the subprime credit category. Pelican leaves no stone unturned in its effort to reach more low-income consumers.

Porta said a significant recent push takes a long-term view in reaching out to area youth. Financial products that educate and serve young people may be a key to increasing financial inclusion.

“We have products for every member, but we take financial wellness and education very seriously at Pelican,” Porta said. “We want to build those relationships early because if we care for them when they’re younger, we believe they’ll stay with us for a lifetime.”

Pelican is a federally certified Community Development Financial Institution, and the National Credit Union Association has designated it a Low-Income Credit Union.

In recent years, it has accepted more than $10 million in grants to further its mission of financial inclusion.

It makes a lot of sense to start as early as possible with members and prospective members to reach that goal. Pelican’s youth outreach strategy begins with its Student Points Visa Credit Card. Pelican designed the card to get students — who can be of any age — thinking about using credit wisely for their financial benefit.

Anyone with a credit score of 610 or above is eligible to apply for a Student Points Visa Credit Card. Applicants with no credit can provide proof of school enrollment. The maximum limit is $2,500.

Moreover, the Student Points Visa Credit Card pays 5 times the points — redeemable for cash — on purchases popular with students, including DoorDash, Uber, Lyft, Uber Eats, ASAP, concert tickets, entertainment/streaming services, gaming purchases, fast food restaurants, and coffee shops.

“Students can be from any walk of life, but typically, a student is a younger person with little or no credit,” Porta said. “With a $2,500 limit, they can’t get into too much trouble, and it teaches them to charge what they can pay.”

Making on-time payments and paying your balance in full are the keys to wise credit card use. Pelican offers a catalog of items cardholders can redeem for their points, but cash back is the big lure. The card is unique because Pelican doesn’t save the perks and points for big spenders with established credit.

An email marketing push in June 2024 followed a soft launch in May. Not many members of student age walk into branches receptive to a sales pitch, so well-trained Pelican staff offer the product to parents and grandparents. The card comes with free Norton LifeLock ID Theft Protection.

“All of our Visa credit cards give you the monthly FICO score right in our Pelican State Credit Union app,” Porta said. “You’ll quickly learn if there’s any swing in your score. Plus, you can watch it grow, which is fun.”

High school students under 18 (along with parents, grandparents, alums, and everyone associated with a school) have a different inroad to financial services: the School Pride Debit Card.

Pelican members who add a School Pride Debit Card to their checking account earn the privilege of fundraising for their school every time they swipe their card. A local university and 13 area high schools have joined the program. Signees with up to 499 active cards earn 5 cents for each swipe; those with more than 500 active cards earn 10 cents per swipe.

“It’s so cute with your school name and mascot on it,” Porta said. “It’s a Pelican card, but the branding reflects your logo and colors.”

Porta said the card presents a win-win-win scenario because you receive a quality product, the credit union receives new members, and the school of your choice gets fundraising dollars.

“The schools that initially signed on have raised between $500 to $1,000 off their first year,” Porta said. “The more cardholders and swipes, the more money they’ll raise.”

Through Youth Accounts, even younger students associated with Pelican membership can engage in positive behaviors and earn rewards. Signing up for a Team Pelican Youth Savings account earns children aged 17 and under $5 for every A grade on a report card. Signing up for Teen Checking earns teens 13 to 17 $10 per A.

Associated with Pelican’s Youth Accounts is its Project ACCOUNTability Learning Hub for Teens, which makes learning money management skills easy and fun for teens. Pelican also awards an annual $1,000 college scholarship in each of the 13 Louisiana parishes it has branches in.

“I have three kids, and I make them physically go into the branch and get that money in their hands so they can see it,” Porta said. “It’s an excellent opportunity to watch your savings grow over time.”

Pelican is all-in with these youth programs because it is battling to overcome generations of counterproductive, often habitual money management habits that leave many wanting more and having less.

Counterproductive financial habits increase economic alienation and lead to generational poverty. Making the credit union pitch to youngsters is essential to get them into the system and learn the benefits of positive financial habits.

That said, just as Pelican is a full-service credit union with members from all walks of life, it takes a holistic approach to building stronger communities.

From financial education in schools and communities to employee volunteerism and corporate giving, Pelican strives to be everywhere members, residents, and businesses need it to be.

Performing these direct outreach services may not directly impact credit union earnings but profits communities immeasurably.

Porta shared with us a conversation between two 12-year-olds she overheard that provides her with inspiration to keep going. It was a Monday. One child mentioned that her mother was about to go grocery shopping, and the other asked whether Mom had received her paycheck.

“The first child said no; she gets her payday loan on Monday and her paycheck on Tuesday,” Porta said. “It was just so matter of fact that’s how you do your business.”

But it doesn’t have to be that way. Putting youngsters in charge of their financial destiny teaches them lessons that may contradict those their financially skeptical parents have handed down. The bank (or credit union) may not always be out to get you.

Pelican earns loyal members in return for providing young people with memorable experiences. Porta’s children will undoubtedly long remember earning those cash rewards for good grades.

“We feel a real calling,” Porta said. “We see people working hard, but they can’t catch up. We’re passionate about keeping it from getting so far down the road that they’re living paycheck to paycheck and can’t recover.”