Pam Cohen, Chief Operating Officer, Affinity Federal Credit Union

October 2025 — In an interview with Invest:, Pam Cohen, chief operating officer of Affinity Federal Credit Union, emphasized the lender’s structure that allows greater flexibility in developing solutions for its members. She also discussed Affinity’s not-for-profit model and challenges like housing affordability and fraud prevention. “Our approach is fundamentally different because it is rooted in relationships rather than pure profitability,” Cohen added.

What differentiates Affinity’s service model from traditional banks and fintech institutions?

One key differentiator is that we are a cooperative and a not-for-profit organization. While we must generate revenue to sustain operations, our structure gives us greater flexibility in developing solutions for our members and allows us to maintain lower fees, which directly benefits them.

Fintech institutions play an important role in advancing the industry, and we believe in partnering with them. However, fintechs may not develop the same depth of relationship with their users, as they may not fully understand where members are struggling or where they need encouragement. While fintechs excel in digital engagement, they may lack the emotional connection and human understanding that we prioritize.

Traditional banks are also essential institutions, but credit unions like ours operate differently. We offer similar products and services, but with a fee and rate structure that is often more favorable to our members. Moreover, credit unions were originally established to assist individuals of modest means. In an economic environment where many are struggling due to inflation, that mission is more relevant than ever. We exist to provide support and help members navigate financial hardships with clarity and confidence.

As such, while fintechs often focus on a single aspect of a person’s financial life, we take a comprehensive, relationship-driven approach. Our goal is not solely profit-driven; we prioritize member outcomes and long-term financial well-being. Since we are a cooperative, member satisfaction is critical—because our members are, in essence, the owners of the organization. This purpose-driven model guides every decision we make and keeps us deeply connected to the communities we serve.

What role do credit unions like Affinity play in supporting New Jersey’s small-business sector?

Our role is critical in this area, and we have seen that the greatest need often exists in low-to-moderate-income communities. Credit unions were founded to assist those who struggle to secure credit elsewhere, and we remain deeply committed to that mission. The success of small businesses is vital to the health of our communities—when they struggle, the entire community feels the impact. We take tremendous pride in helping these businesses not only stay afloat but thrive.

To provide an example, during the pandemic, we had members—some of whom only had personal accounts with us—come to us after being turned away by larger banks for Paycheck Protection Program (PPP) loans. Many of these banks would not even accept applications from smaller businesses.

At Affinity, we processed every application we possibly could, even reassigning staff from non-lending departments to assist. There were instances where our teams worked late into the night, sometimes until three or four in the morning, to ensure these loans were completed. That level of commitment reflects our core belief in standing by our members when they need us most.

Because we emphasize relationship-building, we do not make lending decisions based solely on credit scores at a single point in time. Instead, we look at the whole picture—how long a member has been with us, their family ties to the credit union, and other meaningful factors. As a result, members who have been denied loans elsewhere often find approval with us. Our approach is fundamentally different because it is rooted in relationships, community support, and long-term partnership rather than pure profitability.

What are some of the biggest challenges facing credit unions in New Jersey today?

It is expensive to live in New Jersey. The question we continually ask ourselves is: how do we provide the right products and services at the right time for our members? At Affinity, we have dedicated personnel focused entirely on our well-being efforts and the financial literacy programs we’ve put in place. The amount of education we provide to our members and our communities—entirely free of charge—is incredible. In 2024, we visited high schools and local colleges, including community colleges, to conduct real-world budgeting exercises so students could better understand personal finance. We believe it is essential to expand financial education so that younger generations feel more comfortable with financial concepts and confident in asking questions.

We aim to be a judgment-free organization. Sometimes it is tough to go to your parents because they may judge your decisions. It can be tough to go to another financial institution for the same reason—they may provide the product, but there is still judgment attached. Our challenge is figuring out how to deliver support, guidance, and products in a truly nonjudgmental manner so that people feel comfortable coming to us, regardless of where they are in their financial journey.

Another major challenge we’re seeing is the frustration among members who hope to become homeowners but are facing astronomical housing costs. Many feel they have done everything right—they have worked for years to save a down payment—yet they watch homes sell for $100,000 over asking price, putting ownership out of reach.

It is difficult to offer solutions in an environment like this. We assure them that we will support and coach them along the way, but for the average person, saving an additional $100,000 often means waiting several more years to afford a home. That is incredibly tough for families who have worked so hard. And this challenge extends beyond housing—we are seeing the same pressures in the cost of automobiles and even basic everyday essentials.

One of the biggest issues is that the economic environment has become so difficult that even with an extraordinary amount of support, it is often still not enough for many who are struggling today. As a credit union, we remain committed to walking alongside our members through these challenges with honesty, empathy, and unwavering support.

With fintech innovation accelerating and digital banking demand rising, how are you leveraging technology to improve decision-making and client service?

We are spending a great deal of time this year enhancing our technology to strengthen fraud prevention and bolster digital security. We have several projects underway that will help us achieve that. We are also focused on improving our data technology and exploring AI, like many others in the industry, to determine its most meaningful and responsible applications.

We already have a strong digital presence, and once these initiatives are completed, we believe it will be even stronger. One area where AI has been particularly useful is in improving communications and translation. Traditionally, translation requires significant time and resources, but AI has allowed us to make our online information much more accessible across multiple languages—helping us better serve and connect with the diverse communities that rely on us.

Our goal is to use technology thoughtfully, not just for efficiency, but to deepen accessibility, strengthen trust, and ensure every member has the tools and information they need to make confident financial decisions.

What are the top priorities and goals for Affinity over the next two to three years, and how do they align with the broader banking and financial landscape?

Our financial landscape is difficult right now. Our top priorities are ensuring our communities are healthy and ensuring our members are healthy. That is it. As the largest credit union headquartered in New Jersey, it is not only our responsibility but our mission to ensure that our members and communities thrive.

One of the biggest challenges the banking sector faces is uncertainty in the upcoming economic climate. It is not only members who are struggling; planning is difficult for everyone when the future feels unclear. However, our mission remains unchanged. Our focus on our members and communities will not waver.

We will continue prioritizing well-being, stability, and long-term improvement. In an environment marked by uncertainty, we believe our role is to provide clarity, partnership, and consistent support so that our members and the communities around us can move forward with confidence.