SEATTLE–Express Credit Union is reporting strong growth after moving to serve several underserved segments in its community: immigrants and Hispanics.
In the late 2000s, the $16-million Express CU said it became a certified Community Development Financial Institution and low-income designated by the NCUA.
“At that time, we leaned in hard on the community development mission, and that remains the centerpiece of why Express exists today: to serve that community development need,” said CEO Paul Baudin. “We realized from the outset that one of the most severely underserved segments in our community were the immigrants, and specifically the Hispanic community.”
Today, Express CU is reporting that approximately 40% of its membership is Hispanic, which it credits to its “deep commitment” to serving the market. Among its offerings to the market:
- Individual Taxpayer Identification Number (ITIN) loans. For credit unions unfamiliar with the product, an ITIN is a tax processing number issued by the IRS for those who are not eligible for Social Security Numbers
- A business development officer who spent a year in Paraguay with the Peace Corps
- An entire frontline team that is bilingual
‘An Important Need’
“It really serves an important need within that community to have a welcoming financial institution where they can speak in Spanish if they wish and be served,” Baudin said. “We love helping those folks out.”
Express Credit Union, which is also a Treasury Certified Acceptance Agent, said it has partnered with the King County United Way on its free tax preparation services, and it further helps United Way with ITIN application. In 2020, the Express CU team helped 150 first-time ITIN applicants and renewals – member or nonmember.
“That's just us giving back to the community,” said Baudin. “ITIN borrowers have the same credit needs as anyone else does, even just basic things like vehicle loans. A lot of our members love to come to us for loans to get pickup trucks, because that's what they need to do their job.”
“It's been our experience that if you take the time to know your members, which I would hope that every credit union does, and understand what their needs are, then we have not found that lending to ITIN holders is any riskier than lending to our general membership,” Baudin added.
Passion Required
Baudin believes credit unions should get involved in serving the Hispanic market and ITIN lending for the right reasons.
“You need to have a certain degree of passion and wherewithal to take it on,” he said. “Please think beyond just what the effect on your bottom line is. It’s baked into the credit union philosophy, people helping people. Credit unions should know it obviously requires extra effort to community well, and the last thing I would want to see would be a credit union, going down that road, basically, just to get loans on the books without really having a genuine commitment to serving the Hispanic community in the long run.”
Partnered With Your Marketing Co.
The credit union has been working with South Carolina-based Your Marketing Co. in its Hispanic outreach. The company’s offering include a Hispanic community specialist.
“There have been some terrific dual-track campaigns put together in both English and Spanish,” Baudin stated.