Press
Inclusiv releases capacity building & technical assistance guide for black credit unions
Today, Inclusiv releases Preserving and Growing Black Credit Unions: Inclusiv’s Guide for Building Capacity and Providing Technical Assistance, drawn from Inclusiv/Black Communities experience targeting resources and support to Black-led credit unions in New York City and Chicago. The guide details the model Inclusiv/Black Communities developed together with participating credit unions to expand the reach and impact of Black credit unions.
The guide serves as a resource for credit unions seeking to grow and build in the midst of growing demand for their services and an increasingly complex financial services landscape. Black credit unions have repeatedly demonstrated how to successfully reach and serve formerly excluded consumers and businesses by delivering loans to those who would otherwise have to rely on high-cost predatory services. Yet these institutions have faced decades of underinvestment and regulatory pressure to merge or liquidate. With support from Citi, Inclusiv has made it our top priority to support these critical legacy institutions to build effective business models, access external resources and investment, and not just survive but grow and thrive along with their members. Preserving and Growing Black Credit Unions was made possible with support from Citi and our numerous credit union allies and partners, including the African American Credit Union Coalition, Illinois Credit Union League, New York Credit Union Association, and the Faith Based Credit Union Alliance in Chicago.
In the United States, 514 credit unions designated as minority depository institutions (MDIs) serve nearly 4 million people in communities of color. Collectively, these MDIs represent over $40 billion in locally owned, community-controlled assets. The composition of minority-designated credit unions reflects the history and the diversity of the credit union movement: 54% of MDIs are Black credit unions, 19% are Hispanic American, 10% are Asian American, 2% are Native American, and 15% are Multi-Ethnic credit unions. Black credit unions play a critical role in advancing racial equity in the U.S. by expanding financial inclusion and wealth building in their communities. Black credit unions serve nearly 2 million people and manage over $17 billion in community assets.
“Black credit unions are the building blocks to a racially just and equitable financial system for this country. For decades, these institutions have served as the sole source of affordable credit and financial services for their members and communities,” says Cathie Mahon, Inclusiv CEO. “We are at a critical moment of inflection to ensure that capital raised in the name of racial equity be invested into Black owned and led credit unions. With Preserving and Growing Black Credit Unions, Inclusiv has been able to document both the important role of Black credit unions and the concrete ways they are working to overcome obstacles and barriers to growth, develop productive on the ground partnerships and build a plan for growth, stability and sustainability for themselves and their communities into the future.”
“Minority-owned credit unions are deeply embedded within communities of color to deliver access to financial services,” said Gregory Schiefelbein, Citi Community Relations New York Tri-State Market Leader. “By supporting Inclusiv in the publication of its new guide, we aim to help these institutions sustain and grow their operations to continue serving racially diverse households and entrepreneurs.”
“Inclusiv and Concord Federal Credit Union began a relationship when Concord was at a turning point in its history. Inclusiv provided assistance in critical areas that enabled Concord to develop a feasible strategic plan and growth strategy. As a result, Concord has since experienced growth in its membership and assets, and provides new services and products to its members,” says Harry Franklin, former manager, Concord Federal Credit Union.
The Inclusiv/Black Communities initiative, which began as the African American Credit Union Initiative, brought together regional networks of Black credit unions to establish and prioritize goals, conduct research, implement new systems, and share best practices. Inclusiv has produced a replicable model for the continued success of Black credit unions who serve and sustain their communities.
The model described in Preserving and Growing Black Credit Unions includes identifying strategic priorities and leveraging partnerships; expanding technology and product offerings; maintaining regulatory compliance; planning for transitions and mergers, and raising resources needed for growth. The capacity building and technical assistance model, with minor adjustments, has been applicable to Inclusiv’s collaboration with Black credit unions in other geographies. To further grow Black credit unions at this crucial moment, the public and private sectors need to come together to invest in the following areas:
- Expanding their capital base through grants and investment from the expanded government, corporate and private philanthropic sources available;
- Maintaining or growing their lending through the ongoing financial crisis;
- Reaching new members of their communities through community partnerships and expansion;
- Strategically updating their technology to expand access in their communities; and
- Strengthening their staff and board capacity for long-term sustainability.
Inclusiv is extremely committed to supporting the growth and preservation of Black credit unions, as we have been since our founding in 1974. As part of the Inclusiv/Black Communities initiative, Inclusiv continues to advance financial inclusion and racial equity by providing our members with learning opportunities and training to professionalize the field, increasing the number of Black credit unions that receive CDFI certification and funding, providing technical assistance for strategic growth, and supporting regional networks so that Black credit unions can provide each other with ongoing peer support.
