NEW YORK–The role of Black credit unions in extending financial services to often-underserved communities and residents in this city has gotten the attention of local media.
Under the headline, “Black Credit Unions Coming Out of the Pandemic Stronger Than Before,” NextCity.org profiled a number of local businesses that have received loans from credit unions as part of what was descry bed a “new chapter” in the CUs’ histories.
Among the credit unions featured was Concord FCU, which is based at one of the oldest historically Black churches in Brooklyn. In that case, a loan it made to a local business “came about as a result of a dramatic shift in the credit union’s business model, a shift initiated through a partnership with Inclusiv,” the national network of credit unions that focuses on community development,” the report stated.
“With Inclusiv’s help, Concord expanded its eligible membership, modernized its technology and hired its first full-time staff since it was established in 1951,” NextCity.org stated.
Loan Portfolio Triples
“As a result, Concord Federal Credit Union has nearly tripled its loan portfolio since the beginning of the pandemic,” NextCity.org reported. “Meanwhile, Inclusiv is now working with 80 majority-Black credit unions across the country, and some are experiencing even more significant transformation in their lending or membership.”
The report cited NCUA data showing there are approximately 260 majority-Black credit unions, down from 389 majority-Black credit unions in 2013, the first year the NCUA’s Office of Minority and Women Inclusion submitted its first required annual report to Congress. The decline is in line with the overall reduction in the number of CUs.
One of the challenges, the report states, is that “…many majority-Black credit unions just weren’t built to make loans. In a world still full of financial institutions that make a business out of preying on Black communities, many Black credit unions were built mainly as a way for members to have a trusted place to deposit their savings.
Adding Staff
“That’s especially true of credit unions attached to Black churches. Many majority-Black credit unions have only part-time staff, or they’re run by volunteers from a church congregation,” the report continued. “They’re open for business maybe two days a week, sometimes only one day — Sunday of course, when members could stop by before or after services to make deposits or withdrawals.”
Established in 1951 to serve the members of Concord Baptist Church, for its first seven decades Concord Federal Credit Union had zero full-time staff. Before the pandemic it was only open on Sundays and Thursdays. Today it has two full-time staff and is currently looking for a third.
But Concord Credit Union said the CU has now put the “emphasis on lending.”
For the full profile, go here.