Credit Unions Work to Heal Racial Divide

The credit union industry’s mantra is “people helping people.”

From the tragic death of George Floyd and weeks of protests across America erupted a loud cry from people of color to help them end racial disparities. Hearing that collective loud cry from millions of protesters, many credit union leaders said they are now unified and determined to help them.

The key question being discussed by credit union leaders is: What can credit unions do to address the complexities of racial issues in their communities? While diversity, equity and inclusion policies are important, without cultural change that encourages true inclusion, it risks being little more than checking the right boxes, as NCUA Chairman Rodney Hood recently observed.

Public opinion has shifted as the majority of Americans now recognize that the nation has racial problems that extend from police abuses to a variety of inequalities in education, housing, the workplace and poverty levels. What’s more, 60% of Americans said that brands must take a stand and speak out on racial injustice, according to a June survey of 2,000 U.S. respondents conducted by public relations consulting firm Edelman in Chicago.

Renee Sattiewhite, president/CEO of the African American Credit Union Coalition in Duluth, Ga., is coordinating a new national initiative, Commitment to Change, with other credit union organizations such as CUNA and WOCCU, which will make recommendations later this year for an industry-wide call to action.

“I believe that credit unions can lead the way,” Sattiewhite said. “I believe the mindset of credit unions with people helping people, we can change this nation. We can lead the effort to end racism because we have a spirit that comes from strength and perseverance.”

But many credit union professionals are asking: Where do we start? How can we move forward? What are the specific steps that we can take?

Sattiewhite said it starts with remembering to be kind to each other and credit unions having open and candid conversations about race. Before those tough talks begin, however, the ground rules must include showing respect for everyone, not judging people for what they say and listening carefully.

“The first thing is not to blame anybody for how they feel and or take it personally,” she said. “If we’re going to have these conversations, you’ve got to get a thick skin. You can’t be so sensitive.”

Indeed, the lack of honest and fact-based conversations about the depth of the challenges of race seldom take place and rarely lead to action. That was one of the findings of a report called “Divided by Design” on race and class in the South, compiled by the National Advisory Council.  Bill Bynum, president/CEO of the $309 million Hope Credit Union in Jackson, Miss., served on the council. That report was released in October 2019 and posted on Hope’s website.

Tim Anderson, president/CEO of the $1 billion United States Senate Federal Credit Union in Alexandria, Va., agreed that listening is an important first step to addressing inequalities.

“A lot of times we think we have the solutions, yet we haven’t listened to the people who are hurting,” Anderson said.

Among his close white friends, Anderson said they have a rule that it’s OK to talk about race even if it may be initially uncomfortable because talking about the topic can lead to greater understanding.

“One of my white friends may bring up something that may sting a little bit, but you know what? I’m so glad that they do because now we can have real conversations,” he said. “We’ve got to talk about it because that’s how we resolve it.”

Robert Trunzo, president/CEO of CUNA Mutual Group in Madison, Wis., said credit unions need their norm to be that they regularly – right now and in the long term – engage in explicit conversations around race and their role in the credit union movement to fight injustices and barriers to a brighter financial future for all.

Four years ago, CUNA Mutual Group formed a multicultural center of expertise to understand diversity among credit union members and how credit unions can respond to those differences to provide better products and services. Through its research, the organization determined that minorities and young people were the biggest untapped populations for credit union membership, and how minorities differed in their preferences for borrowing and other financial services.

Minnesota Credit Union Network President/CEO Mark Cummins said that in addition to providing resources to address the immediate needs of those impacted by the riots following the death of George Floyd, Minnesota credit unions are revisiting their diversity, equity and inclusion (DEI) policies, having discussions with staff internally and reaching out to members.

“Input and dialog with the community is an important initial step to understand these issues and explore how our values and the credit union model positions us as an active participant in the solution,” Cummins said. “I look forward to partnering with credit unions to have these important discussions with both the community and policy makers.”

Sattiewhite, who has throughout her career studied and discussed all sides of the complex race issue, said candid conversations can help white people understand the cultural nuances of the Black community.

“We need to have an inclusive culture,” she said. “We need to have an accepting culture.”

As an example, former San Francisco 49ers quarterback Colin Kaepernick stirred an intense national debate when he took a knee during the national anthem in 2016 to protest the country’s treatment of minorities.

Sattiewhite said Black people viewed his action as a sign of respect because they are keenly aware of the current and historical problems of inequality that have affected their lives. But white people viewed Kaepernick’s action as a sign of disrespect because they may not be aware of the many struggles and challenges of inequality that Blacks have faced for a long time.

White people had every right to feel that what Kaepernick did was disrespectful, she acknowledged, but Sattiewhite also said she believes that when what the football player was protesting by kneeling and why is fully explained, it gives people a different perspective.

Today, people now have a different perspective, she pointed out, after viewing side-by-side images on social media showing Kaepernick kneeling on the ground and the former Minneapolis cop kneeling on the neck of George Floyd, an image that made it clear to many that this nation continues to have racial problems.

Getting to know and understand these cultural differences was another key finding of the Divided by Design report.

“Exposure to different cultures and ways of life helps people develop awareness of others and of possibilities for the future, furthering their acceptance of differences and ability to pursue their full potential,” the report said.

The report’s No. 1 finding was that many white people lack an understanding of the scale of racism in America, including its racial history and how it permeates today’s institutions. That’s why, Sattiewhite noted, it’s so important for people to become educated about American racism. While reading the Divided by Design report, available for free at dividedbydesign.org, is a good place to start, there are many other books, movies and documentaries available at all public libraries and other online resources.

It’s interesting to note, however, that several months before the George Floyd incident sparked public fury, credit union organizations were addressing diversity, equity and inclusion issues across the industry.

In September 2019, CUNA’s board of directors voted to make DEI the industry’s eighth principle. The idea for adding it came from Maurice R. Smith, CEO of the $2.3 billion Local Government Federal Credit Union in Raleigh, N.C., last year when he served as CUNA’s board chair. A few months later during the 2020 GAC, the Network of Latino Credit Union Professionals and the African-American Credit Union Coalition launched a new initiative, the Diversity, Equity and Inclusion Partnership, which is focusing their combined efforts to provide actionable strategies and counsel to credit union organizations to implement diversity, equity and inclusion efforts throughout the industry.