An Interview With Jason Hartman
Share what you are doing and what you are learning so that we can collectively move the needle.
Most of us take it for granted that we can open a bank or a credit card. But the truth is, according to the World Bank, close to one-third of adults — 1.7 billion — are still unbanked, and have no access to a transaction account. About half of unbanked people include women in poor households in rural areas or out of the workforce. What can be done and what is being done to promote more financial inclusion? To address this Authority Magazine started a new series about Companies Helping To Promote Financial Inclusion. As part of this series I had the pleasure to interview Paul Chong.
Paul Chong is head of investments and retirement at CUNA Mutual Group where he leads CUNA Mutual Group’s retirement, annuities and wealth management businesses. Prior to joining CUNA Mutual Group, Chong served as executive director, head of institutional consulting and 401(k) at UBS. In addition, Chong served as executive vice president for business development at Prudential Retirement and president, Corporate Market Groups for CitiStreet.
Thank you so much for doing this with us! Before we dig in, our readers would like to ‘get to know you’. Can you tell us a bit about how you grew up?
I grew up in the northern part of New Jersey and am the youngest of 6 children. My father was an immigrant from Peru, and we were one of the few Asian families in my town at the time. One of my sisters has cerebral palsy and is deaf. Those two factors had a great deal of influence on our family dynamic. My father never let racism or intolerance get in the way of his success, and my sister’s optimism gave us perspective on what is important in life. I am lucky to have grown up in a close and supportive family environment that taught me that all things were possible.
Is there a particular book that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
It’s actually a book I have never read called The Ascent of Man. My Dad had bought a bunch of copies for us all to read because he thought it was an excellent book, and that we would benefit by reading it. I told him that I would rather read my science fiction/fantasy books, and he threw the book towards me. That was the day that I learned not to say the first thing that came into my head. As I’ve had kids of my own and have tried to get them to read and do things that I think would be beneficial to them, I think back to that day. I have a whole new appreciation for my father and what he went through.
Do you have a favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life or your work?
Early in my career our CEO gave a motivational speech about the work that we did, which was retirement planning. He shared a story about a man who was walking down a beach after a bad storm which washed ashore thousands of starfish. He came upon a little girl who was picking them up one by one and throwing them back into the ocean. He looked at the thousands of starfish all around her and asked, there are so many, how can you possibly make a difference? She lifted another starfish and showed it to him, threw it in the ocean and said, it makes a difference to this one. That has always stuck with me, because the issues we are trying to solve are very large. However, if we focus on making an impact one person at a time, we are accomplishing a lot.
How do you define “Leadership”? Can you explain what you mean or give an example?
True leadership is a selfless duty. Those you lead depend upon you to put your self-interest aside, to help them individually while doing what is best for the team and to make those difficult decisions that will get second guessed by all. Teddy Roosevelt’s “The Man in the Arena” comes to mind as a way to describe my thoughts about leadership, it requires courage, tenacity and dedication.
Can you share the most interesting story that happened to you since you began your career?
The most interesting story of my career is that when I turned 40, I decided to leave the financial services industry to become an entrepreneur in the food service industry. I quickly realized that food service wasn’t for me, and that I hadn’t fully appreciated what I had been doing up to that point. I loved the people, the mission and the challenge. Not everyone can say that. There is a saying that goes, “in order to find out who you are, you must first find out who you are not.” This little step off the beaten path told me a lot about who I am not.
Now let’s move to the main focus of our interview. Let’s start with a basic definition so that all of our readers are on the same page. What exactly is Financial Inclusion?
I regard financial inclusion to be the concept that all people should have access to financial products and services that are necessary to live in their community.
What does it mean to be “unbanked”?
Being “unbanked” is a catch-22 where basic financial services are unattainable because you do not have a bank account and a place to start achieving financial wellness.
For the benefit of our readers, can you explain some of the typical reasons why a person might be unbanked? Why can’t they just walk into the local bank and open an account? Why can’t they simply open an account online?
The most common reason cited is that they cannot afford the minimum balance in order to maintain an account, in the case of a physical bank, or they do not have reliable access to the internet in the case of opening an online account. There are many other reasons that have to do with socioeconomic status, language barriers and documentation.
Can you tell our readers a bit about your work to promote Financial Inclusion? Without saying names, can you share a story about a person who was helped by your initiative?
At CMFG we have identified personal finance as one of the main pain points for our customers. We serve Credit Unions and their members, and as you may know, the credit union movement started because many people were unbanked. We work with and support the many financial inclusion programs and initiatives across the industry sponsored by individual credit unions as well as CUNA and the National Credit Union Foundation. We are also implementing personal financial coaching programs for customers who tell us that they can’t afford their premiums or participate in their retirement plans.
This may be obvious to you, but it will be helpful to spell this out. Can you articulate to our readers a few reasons why it is so important for businesses to promote financial inclusion?
It is important to provide the same basic services and access to everyone, regardless of socioeconomic status. Financially, it may be counter intuitive, but promoting financial inclusion also drives economic growth. By helping individuals and families to become banked, they in turn are able to use their wealth to support their communities, build businesses and invest in education.
Here is the main question of our discussion. You are an influential business leader. Can you please share your “5 Steps Business Should Take to Promote Financial Inclusion.” Kindly share a story or example for each.
- Step One: General research. A good place to start is the Center for Financial Inclusion.org, finrafoundation.org. McKinsey and Deloitte have excellent studies on the subject as well.
- Step Two: Market research. Determine what audiences and populations your products or services could potentially reach in these target demographics.
- Step Three: Product/Service changes. Explore how your business could potentially be adapted for to include these expanded audiences and markets.
- Step Four: Pilot and learn. In this next step, focus especially on how you can make a difference on person at a time.
- Step Five: Share what you are doing and what you are learning so that we can collectively move the needle.
You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger.
I have always felt that the pay it forward concept works incredibly well, especially for this topic. If an unbanked person receives the help, counseling and access that they need to become banked and subsequently more financially stable, chances are that they know others who could use similar help. If we ask them for those referrals and help reaching them, we can quickly compound our reach.
Is there a person in the world, or in the US, with whom you would like to have a private breakfast or lunch, and why?
Melinda Gates — As co-chair of the Bill and Melinda Gates foundation, I would like to hear her views and experience on how to best impact poverty, disease and inequity around the world from a top down (a foundation with considerable financial might) and bottom up (individuals around the world) approach.
How can our readers further follow your work online?
CUNA Mutual Group’s website: cunamutal.com
LinkedIn: https://www.linkedin.com/in/pauljchong/
This was very meaningful, thank you so much. We wish you only continued success on your great work!
Paul Chong of Investments & Retirement On How They Are Helping To Promote Financial Inclusion was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.