Technology investments can elevate product and service delivery

Alignment of systems, processes would help CUs reach underserved

December 20, 2022

CUNA supports the Interagency Community Investment Committee’s (ICIC) goal of improving the effectiveness of federal community investment programs, it wrote to the committee Monday. The committee issued a Request for Information on improving the operations and delivery of federal community investment programs.

“Alignment of requirements including definitions, deadlines, and reporting requirements allows credit unions investments in systems and processes to have exponential impacts for the communities they serve,” the letter reads. “Reductions in barriers will ensure that the broadest number of underserved, unbanked, and low-income e communities get access to safe and fair financial products and services that will contribute to their overall financial well-being strengthen the capacity of community financial institutions, such as Community Development Finance Institutions (CDFIs), Minority Depository Institutions (MDIs), Revolving Loan Funds (RLFs), community banks and credit unions to low- and moderate-income communities and historically underserved populations.”

CUNA also makes additional suggestions to help improve the effectiveness of federal community investment, including:

  • Calling on ICIC agencies to support the Expanding Financial Access for Underserved Communities Act, which would modernize the Federal Credit Union Act to enable credit unions to serve underserved communities.
  • Calling on the Small Business Administration (SBA) and other agencies to take a look at other arbitrary restrictions to ensure that participation in its loan programs is maximized in an efficient and effective manner
  • Supporting the Treasury with regard to obtaining appropriations from Congressional to improve the technological and service capacities at the Community Development Financial Institutions Fund.
  • Urging ICIC to coordinate amongst its various agencies to ensure that each agency’s data collection requirements are consistent so that compliance costs can remain manageable, particularly for small to mid-sized lenders.
  • Encouraging the ICIC to consider how it can most effectively work with the NCUA’s CURE Office to reach these credit unions.