If 2020 has taught us anything, it's the value of preparing for emerging trends that suddenly become today's reality. For credit unions, that means building the capacity to thrive amid a likely return to lower levels of member deposits, generational shifts that could reduce membership and the mass adoption of digital services. One largely unexplored way to create such resilience is through impact investors, who can help credit unions enhance services and speed up adoption of new technology while providing mission-aligned, patient capital.

Impact investing, driven by personal values as well as financial returns, has experienced phenomenal growth in the past few years.  According to US SIF's biennial trends report, total impact investment assets under management in the U.S. grew 42% from 2018 to 2020. In the same time period, impact assets invested at community development credit unions grew 49%. Some of the ways deposit dollars from impact investors add value for credit unions include:

• More capital to invest in products and services for members;
• Less time spent seeking new depositors and responding to due diligence requests;
• A diversified deposit base that provides a hedge against local economic downturns; and
• Relationships with newer, tech-enabled organizations that bring in fresh ideas and resources, and encourage collaboration and knowledge-sharing among credit unions.

These benefits have enabled credit unions to capitalize for long-term growth, reduce their capital acquisition costs and expand their capabilities, making them more resilient and future-focused.