For Credit Unions Slow to Embrace Diversity, Take a Cue From Toronto

I recently returned from a trip to visit our friendly northern neighbors in Toronto, Canada. It was my first time traveling to this beautiful city, and I was enamored by the amount of diversity.

Living in Washington, D.C., the nation’s capital, I’m no stranger to the amazing diverse racial mosaic that is the place I call home. However, Toronto is the crème de la crème of diversity, meaning, it’s one of the most diverse places I’ve ever seen. Turns out, my observation was correct, as it actually is one of the most diverse cities in the world. The city is filled with so many different types of people –160 languages are spoken in the city, which is home to 6.2 million people including 2.7 million immigrants, according to Statistics Canada, a website run by the Canadian government.

With such a diverse mix of people, the city offers so many different sights and sounds. In just one weekend, I attended the Latin Festival, a weekend-long street fair with vibrant dances and music. The next day we ventured to Afro Festival, complete with various culinary delights, vendors and musical guests, all of whom were of African heritage. It felt like a tour around the world, all while staying in one city.

While having dinner one evening, I noticed a community organization across the street from the restaurant where we were eating. On the window it advertised free services including English classes, childcare and legal counsel. Now, I don’t claim to be an expert on Toronto, or the racial or social issues within the city. However, based on my conversations with people who live there and observations of residents’ interactions, it appeared to be a city that embraces diversity instead of fighting it. That motto in fact seems to embody what everyone who visits or lives in Toronto loves about it, and it’s also benefiting the city in a major way financially.

According to Tourism Toronto, the city “had a record-breaking year in 2017, with 43.7 million visitors welcomed to the region. For the first time, overnight visits in Toronto, Canada’s Downtown, surpassed the 15 million mark (15.5 million), joined by 28.2 million same-day travelers. Visitors to Toronto spent $8.8 billion – the most economic activity ever generated by the region’s tourism industry and represents $700 million more in hotel rooms booked, attractions seen and restaurants experienced than in 2016.”

Which brings me to my slightly circuitous point of this article: What Toronto is doing is exactly what credit unions should do – embrace diversity, promote it, encourage it and create products tailored to different types of people.

Promoting and embracing diversity is the right thing to do. However, beyond that, it’s also financially beneficial to credit unions.

In a column I wrote last year, “The Importance of Embracing Diversity at Your Credit Union,” Ronaldo Hardy, president/CEO of the $101 million Southwest Louisiana Credit Union in Lake Charles, La., emphasized that now more than ever, consumers are becoming more aware of how they’re directing their dollars, and are looking for representation when deciding to do business with an organization. Additionally, a 2017 Forbes article said, “Companies that have more diverse management teams have 19% higher revenue due to innovation.”

The NCUA recently issued a Business Case for Credit Union Diversity, which includes three key points explaining why diversity is good for business:

• Growth: Diversity creates opportunities for growth in untapped markets.
• Innovation: Diversity gives credit unions the ability to create more innovative solutions and services that meet the diverse needs of members.
• Talent: Diversity allows credit unions to attract employees and volunteers from a broader pool of talent.

Perhaps I sound like a broken record when it comes to my promotion of diversity, since I’ve written so many articles about it. I agree with others in that we’ve made a ton of progress in this country and in credit unions. However, it’s still a song that needs to be played on repeat because embracing diversity has been a very slow process.

The NCUA’s 2018 Voluntary Credit Union Diversity Self-Assessment Results stated: “Of the 81 credit unions submitting a self-assessment in 2018, more than half reported having a leadership and organizational commitment to diversity. Just under half reported proactively implementing employment practices that expanded outreach efforts to diverse individuals. Overwhelmingly, the majority of reporting credit unions did not actively engage in supplier diversity, and did not make their diversity and inclusion policies and practices publicly available. Approximately one-third of the reporting credit unions actively monitored and assessed their diversity policies and practices.”

While credit unions seem to be making progress, there’s still so much room for improvement. If you don’t want to listen to me, listen to the NCUA: “Research shows that diversity leads to better service, greater innovation, better solutions, increased membership, and an enriched member and employee experience. These things make credit unions strong and sustainable, which ultimately leads to greater strength for the entire credit union system.”

Tahira Hayes is a correspondent-at-large for CU Times. She can be reached at thayes@cutimes.com.