April is Financial Capability Month, a time focused on recognizing the role of investments, education, and supportive programs that help to ensure families are financially resilient and help build a more equitable economy. As we focus on the cross-cutting efforts necessary to promote financial capability, we’d like to shine a spotlight on the Economic Mobility Corps (EMC), an innovative partnership between the Department of the Treasury’s CDFI Fund and AmeriCorps, launched in 2021, to place AmeriCorps members for one-year terms of service at certified CDFIs.

Through this interagency collaboration, the EMC program is expanding national service opportunities while bolstering the ability of CDFIs to deliver financial services and products to families and communities in need. At the same time, the EMC program is also building a pipeline of diverse talent to undertake community and economic development work as members gain new skills and professional experience to build their careers in the CDFI Industry.

CDFIs provide credit, capital, and financial services in support of underserved families and communities throughout the country. The Treasury Department has certified over 1,400 CDFIs serving distressed urban, rural, and Native communities throughout the country. CDFIs have a proven track record of investing in communities and filling critical gaps in providing financial services, financial products, and wealth-building opportunities for low-and moderate-income consumers and aspiring entrepreneurs in underserved geographic areas. Yet, despite this critical work, CDFIs are often under-resourced and experience human capital constraints, especially those CDFIs working in rural communities.

CDFIs are particularly well equipped to help strengthen the financial resiliency of families, many of whom were historically shut out of traditional banking resources. In 2021, one in five households in the United States were unbanked or underbanked, a reality that disproportionally impacts households with low-incomes, leaving them vulnerable to predatory financial services. By coupling responsible financial products with direct services and technical assistance, CDFIs uniquely promote inclusive economic outcomes for the clients and communities they serve.

Read the full article about how CDFIs can drive economic mobility by Michelle Harati at LISC.