Credit unions are also reaching and serving diverse populations through the 551 MDI credit unions that serve 3.9 million members (3.5% of credit union memberships), represent 9.9% of the total number of credit unions, and hold 2.7% of total credit union assets.
MDI credit unions are those where more than 50% of their current membership, potential membership, and board members are minorities.
MDI credit unions represent a significant proportion of credit unions and their assets, especially when compared to the more modest number of MDI banks (152). MDI banks represent 2.8% of the total number of banks and hold a mere 1.3% of total bank assets.
CUNA estimates that MDI credit unions generate significant benefits for their members. Between September 2017 and September 2018, MDI credit unions provided $314 million in direct financial benefits to MDI credit union members. These benefits are equivalent to $83 per member.
Through participation in other designations and certifications such as the low-income designation, community development credit union certification, Community Development Financial Institution certification, the Juntos Avanzamos designation—and by taking advantage of resources such as Coopera—credit unions are further demonstrating a commitment to serve diverse and underserved communities.
Despite FOM restrictions, credit unions are doing a good job of reaching and serving diverse populations—but there is room to do better.
Credit unions that reach these populations successfully use innovative products and services that meet the needs and demands of their diverse communities, such as ITIN loans, small dollar loans, emergency loans/payday alternative loans, and small business loans.
Doing better in an increasingly diverse marketplace means deepening credit unions’ reach and continuing to invest in gaining a deeper understanding of diverse groups to develop tailored products and services to better serve them.