Actions Speak Louder

As CUNA Mutual Group Vice President of Diversity, Equity and Inclusion Angela Russell said in a recent op-ed, “If we stand by our Black Lives Matter statements, it must go beyond the brand.” Credit unions and other organizations that declared their stance against racism by releasing a public statement this summer, but have not yet followed up with real action, are simply not doing enough.

The Aug. 23 police shooting of Jacob Blake, a Black man in Kenosha, Wis., and the ongoing COVID-19 pandemic that has brought to light severe economic and health-related disparities according to race, are just a few reminders of why it continues to be more important than ever to proactively address racial inequality.

That’s not to say that “brand building” statements are totally worthless. A recent survey from BAI of 475 financial services employees and HR leaders said that those surveyed “cite that having a visible DEI statement is an important foundational element in creating a strong organizational culture that supports diversity issues.”

Stopping after releasing that statement and expecting change is like completing step one of a recipe and expecting a completed dish, however. “The passion and energy are there to make changes, but financial services leaders must also develop concrete action-oriented plans and set goals that are supported by metrics to enable them to regularly assess progress,” BAI President/CEO Debbie Bianucci said in releasing the survey results. “It’s important for leaders to set specific goals not just for employment but also focused on professional development opportunities for workers of every gender, race, ethnicity and orientation. That’s what will really move the needle.”

Movement is starting to take place within the credit union industry, but it’s going to take time and commitment from a majority of its professionals for any significant differences to be seen. To get some ideas of what DEI action should look like for credit unions, I tuned in to a webinar last week co-hosted by Inclusiv, formerly known as the National Federation of Community Development Credit Unions, and Coopera, a consulting firm focused on helping credit unions better serve the Hispanic market.

One resource ready-for-action credit unions might turn to first is the CU DEI Collective, an expanding, collaborative group within the credit union movement created to push for DEI, as well as a central hub credit unions can visit to learn how to leverage DEI-related tools. Its roster of founding organizations includes some of the most influential voices in the movement – aside from Inclusiv and Coopera, they include the African-American Credit Union Coalition, American Association of Credit Union Leagues, CO-OP Financial Services, CUNA, CUNA Mutual Group, Filene Research Institute, The National Credit Union Foundation, Humanidei & O’Rourke, the Network of Latino Credit Unions & Professionals, PSCU, the World Council of Credit Unions and Your Credit Union Partner.

The first step members of the CU DEI Collective should take, Coopera CEO Victor Corro noted during the webinar, is to sign a “Commitment to Change” pledge – a passive move that isn’t much different from the aforementioned public anti-racism statements. But the next step, “holding a mirror to ourselves and looking at our products and services,” Corro said, is an active one.

The pledge lists specific ways for credit unions to bring about change, such as:

• Review pricing and fee structures to ensure a disproportionate burden is not placed on those who have lacked historical access to quality financial services.
• Examine and understand the role of data in creating and reinforcing inequality in financial services.
• Create a more diverse, inclusive and equitable team including volunteers, boards and staff across all functional areas. (This points to one of the most glaring ways credit unions fall short in embracing inclusion, as around 90% of the decision-makers on boards and in C-suites are white, Corro said.)
• Support staff of color with appropriate programs such as affinity groups and mental health services.
• Donate to and volunteer with community organizations working to advance racial justice.

One way to make a measureable difference in the lives of marginalized or underserved communities is to become designated as a Community Development Financial Institution (CDFI) or Juntos Avanzamos credit union. During the webinar, Inclusiv President/CEO Cathie Mahon and SVP of Membership and Network Engagement Pablo DeFilippi dispelled myths about receiving one of these designations, one being that becoming a CDFI carries too much risk.

Mahon referenced her organization’s “Inclusive Finance Report,” which found that while CDFIs experience more loan delinquencies and charge-offs, they are more profitable, grow faster and are more active lenders than their peers. She also spoke to the misconception that becoming a CDFI “puts a target on your back from the NCUA,” stating, “I can’t say that every examiner will be understanding of what this is, but systemically, the NCUA has made a commitment to this space and sees it as a value add.”

Whether it’s through an official designation or independent initiative, the Inclusiv experts agreed that a commitment to action is what will advance inclusion. “[Inclusion] is creating means and opportunities for everyone to participate in an equal playing field. It’s working to undo historic inequalities and inequities that exist. It’s not a passive term [that means,] ‘let’s open up our products and services to everyone.’ We need to figure out how to use our institutions and roles to open up opportunities to those people, so it’s a very active term.”

DeFilippi added inclusion is “not a ‘flavor of the day,’ but a defining moment for our nation and the movement to recognize its importance, and not just because everyone is talking about it. It’s a moment for us to come to terms, move the needle beyond talking and get into action.”

The actions don’t have to be huge to be meaningful. At the bottom of each page of the September 2020 issue of The Oprah Magazine, for example, is a different suggestion of a small way readers can help fight racism. A few highlights: “Download Official Black Wall Street, an app that offers reviews of Black-owned businesses and notifies you when you’re near one”; “Fight voter suppression by supporting the Color of Change PAC’s Voter Mobilization movement at votingwhileblack.org”; and “Test your implicit bias and assumptions regarding people who are different from you by taking quizzes at implicit.harvard.edu.”

So, what will your credit union do to help move the needle on DEI beyond releasing that anti-racism statement that, while necessary, really does nothing except passively check a box?

Natasha Chilingerian is executive editor for CU Times. She can be reached at nchilingerian@cutimes.com.