Viewing Community Well-Being through Broken Windows

January 5, 2026

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In the early 1980s, two social scientists, George Kelling and James Wilson proposed a theory arguing connections between a physically neglected environment with its susceptibility towards increased crime. Named the “Broken Windows Theory”, Kelling and Wilson posited that,

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“If a window in a building is broken and remains unrepaired for too long, the rest of the windows in that building will eventually be broken, too… [T]he unrepaired window acts as a signal to people in that neighborhood that they can break windows without fear of consequence because nobody cares enough to stop it or fix it.”

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Essentially, a broken window left unrepaired signals to the rest of the community that no one cares—leading to more windows being broken and eventually more serious crimes that perpetrators feel emboldened to carry out.

 

While Broken Windows Theory is mainly used in criminology, there are ways we can see similar patterns of financial neglect in a community as well. One can gauge the financial health of a community by identifying forms of widespread economic neglect (the “broken windows”) experienced by residents. Researchers have found that various forms of neighborhood economic disinvestment can negatively impact the long-term life chances of those who are unable to make ends meet. 

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Examples of economic broken windows include:
 

• Predatory Lending: An abundance of payday loan shops and check-cashing outlets.

• Banking Deserts: Physical branch closures leave consumers unable to find local finance options.

• High Delinquency Rates: The frequency of small financial failures can be a sign of inadequate wages among residents, and their inability to meet basic obligations.

• Lack of Independent/Locally-Owned Businesses: Lack of finances and infrastructural support for residents to circulate capital within their own community.

• Housing Unaffordability: Shortage of affordable housing options for residents.

 

Yet credit unions can serve as a stabilizing force behind "fixing the windows" before the neighborhood's economic health spirals. Credit unions are member-owned, mission-driven, and can prioritize the community’s viability over profits. But do credit unions have insights into the economic broken windows of their own fields of membership? What data are they collecting—if any—to track what the financial pain points are felt by locals?

 

For two decades, Coopera Consulting has provided the data, industry insights and “repair kits” for credit unions across the country. As a mission-driven consulting firm dedicated to assisting mission-driven credit unions, Coopera can be a trusted collaborator to help communities heal—one broken window at a time.