THE ROLE OF CREDIT UNIONS IN FINANCIAL INCLUSION: A NUDGING INTERVENTION EVALUATION
In 2012, the US government introduced a series of policy measures, including the NCUA nudge intervention, as part of an economic relief package. The NCUA sent out 1,003 letters to credit unions, informing them of their eligibility for the low-income designation. As a result of this initiative, the number of low-income credit unions skyrocketed by 69% in 2012. To determine if this nudge intervention could redirect credit unions’ strategic choices, resulting in a positive relationship concerning credit offers and prices for low-income members in the United States, we conducted a thorough analysis of credit union panel data between 2000 and 2019, using difference-in-differences and event study techniques. Our findings indicated a positive influence between the NCUA’s "Nudge Intervention" and the expansion of financial inclusion by the credit unions that responded to the incentive.