ALEXANDRIA, Va.–The NCUA board was given an update on the status of support for diversity, equity and inclusion in credit unions, with one staff member sharing some of the reasons credit unions have said they are reluctant to participate in a voluntary self-assessment of DEI.
During its November board meeting, Director of NCUA’s Offices of Minority and Women and Inclusion Monica Davy told the board diverse organizations outperform those are less diverse, and contribute to a safe and sound credit union system.
Davy noted joint standards have been created for credit unions to follow and since 2016 the agency has been asking credit unions to voluntarily take the Credit Union Diversity Self-Assessment.
Davy said 35 credit unions submitted a diversity self-assessment in 2016, with the number growing each year until 2019, when 118 CUs did so. The highest response rates have come from credit unions with more than 500 employees, perhaps not surprising, given the additional resources available at larger CUs.
Seven credit unions have submitted a self-assessment each of the last four years, Davy said, with all seven showing an increase in affirmative responses to greater diversity in the areas of leadership/organizational commitment, employment practices, supplier diversity, transparency, and monitoring and assessment.
Why Don’t More Participate?
“NCUA is encouraged by the momentum in the industry since the agency started by promoting diversity and inclusion,” said Davy. “Diversity is an investment in growth, talent and innovation and reinforces the credit union philosophy of people helping people.”
In response to a question from NCUA Board Member J. Mark McWatters on why more credit unions aren’t participating in the voluntary DEI self-assessment, Davy said she has heard credit unions cite three main reasons:
- Credit unions just don’t trust NCUA with the information
- CUs aren’t happy with where they are with DEI and want to wait until they improve
- Because it’s not mandatory and there “is so much else on their plates, they just don’t make it a priority.”
Civil Rights Issue
NCUA Chairman Rodney Hood noted he continues to refer to economic inclusion as the “civil rights issue of our time,” and said CUs perform better and better serve their communities when they support DEI.
Hood, joined by the other two members of the board, called on credit unions to participate in the self-assessment survey.
NCUA Board Member Todd Harper said he remains “fully invested” in equity, inclusion and belonging efforts, calling it the “right thing to do for credit unions and the nation” and are “vital” to growth.
‘Zero Tolerance’
McWatterssaid he continues to support “endeavors each day to create and nurture a culture of diversity, equity and inclusion, or DEI, within the agency and the credit union community. While we can’t solve all of the DEI related issues today, we can - working together - help to build a culture with zero tolerance for any discrimination based on race, ethnicity, religion, disability, sexual orientation, and gender that, regrettably, continues within our society today. I strongly support the agency’s OMWI program and its mission to enhance DEI throughout the agency and the credit union community.”