June 27, 2017 About | Subscribe | Contact | CUNA News [ Log in ]

Article Tools

CUNA Research Reports

CU Snapshot

 Apr '17Mar '17
# of CUs 5,926 5,953
Members
(millions)
111.2110.7
Total Assets
($ billions)
$1,381.2$1,374.7
Total Savings
($ billions)
$1,161.4$1,163.6
Net Cap.
Assets
10.4%10.4%
Loans to Savings79.3%78.2%
Loan Delinq.0.8%0.7%

         Credit Union Indicators

Serve Minorities With Targeted Products

Small-dollar loans and financial counseling can be transformative.

The most effective ways for credit unions to serve minority members, according to the Filene Research Institute, include

Roughly two-thirds of all credit unions that serve significant minority populations cite "targeted products" as the most effective way to engage with minority communities—though combining these strategies can prove even more effective, according to Filene's white paper "Reaching Minority Households: Learning from Minority Credit Unions."

Many of these credit unions combine small loans with financial counseling to transition underbanked or unbanked borrowers into long-term savers who are more financially secure, according to Filene.

Filene's research also finds that serving low-income minority members requires a financial institution to adopt a different mindset.

For example, in "financial services deserts," retailers often don't accept credit cards and instead require money orders or cash.

In response, some credit unions experiment with checkless cashing accounts with ATM and debit cards, but without the checks that payday lenders require.

(Via news.cuna.org)