Building vibrant communities is as much a part of a credit union’s DNA as deposit and loan products, and it’s a key editorial focus for Callahan & Associates as we move into the new year. A look back at 2023 shows credit unions are already leaning into their communities, and we’ll continue that focus in the year ahead. You can define that by geography, but there are other definitions as well. Navy Federal’s community is the military and armed forces. Farmers Insurance Group FCU focuses on a single select employee group. Other credit unions serve religious or ethnic communities. But no matter how they are defined, communities are brought together by a common bond.
Strengthening that bond is a large part of how credit unions serve their communities. Read on for a few of my favorite CreditUnions.com stories that illustrate how the industry has helped build vibrant communities this year.
- Banking deserts remain a key concern for credit unions focused on expanding financial access, and that concern is only growing as for-profit banks shrink their branch footprints. Thankfully, we’ve seen a host of credit unions step up to prevent the creation of new banking deserts. In Illinois, Great Lakes Credit Union partnered with The Leaders Network to help prevent banking deserts and more. Not far away, Michigan’s Honor Credit Union and United Bay Community Credit Union both stepped in when banks left town, ensuring small communities maintain access to affordable, accessible financial services.
- Home prices remain a major concern as historically low affordability rates and surging interest rates this summer put homeownership even further out of reach for many. Three credit unions we profiled this year are putting their creativity to the test to help borrowers overcome common barriers to buying a home. Land-lease partnerships, down payment and credit assistance, and even executive roles dedicated to expanding homeownership all are ways credit unions are tackling this crisis head on.
- During the past year, the industry doubled down in its efforts to support small business through not only business lending programs but also broader initiatives that support entrepreneurs — particularly new ones. Many of those had roots in the pandemic and the Paycheck Protection Program. Others predated the pandemic, including an effort from Tennessee Valley FCU that brings together grant funding and small-dollar lending. Speaking of small-dollar lending, a microloan program in New Mexico is funding community organizations and supporting a wide network of partners.
- Of course, in an industry serving 140 million Americans spread across more than 4,700 institutions, the picture varies by asset size, community needs, and more. A Callahan analysis earlier this year examined the loan portfolios of low-income credit unions, and an uncertain economic picture could impact strategy at those shops in the year ahead.
