A year in diversity: Credit union leaders fight for change

December 28, 2022 9:00 PM

Financial institutions competing for talent and new markets of consumers have expanded suites of services and adapted hiring practices to reach underrepresented demographics.

Diversity, equity and inclusion have been top-of-mind for credit union leaders over the course of 2022, driving many to launch campaigns to nurture the next generation of diverse talent through coaching programs, employee resource groups and other initiatives.

Below are American Banker articles over this past year that showcase how institutions of all sizes are pushing for change.

How credit unions are pushing for change by hiring millennial leaders

Institutions seeking to not only attract younger members but also provide a broader suite of financial services are recruiting leaders from the millennial generation and younger to help meet the needs of underserved communities.

"One thing I learned while in business school is if you want to attract your target market, hire your target market and get out of their way … if you represent your target market, it's not difficult to attract and retain them," said Monica Belz, president and chief executive of Kaua'i Federal Credit Union in Lihue, Hawaii.

Credit unions and banks alike are facing competitive pressure from financial technology firms and neobanks that cater to younger consumers. Additionally, reports of the inequalities found in the Paycheck Protection Program and other issues have placed a greater emphasis on financial inclusion.

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One woman's mission to save credit unions by championing diversity

In March 2022, when Renée Sattiewhite sat on stage during a conference in Washington, D.C., she didn't know who was in the audience — or how much her help meant to that person.

The woman in the audience had been trying to start a credit union in North Minneapolis, "in what we call Ground Zero for George Floyd and Philando Castile. For years we had been trying to do this, and because of the heart of one person on that stage it is closer to reality, and that would be Renée Sattiewhite," the woman said. "I picked up the phone and called her and explained my journey. Ground Zero for this project is riddled with payday lenders and fringe bankers. There was no cavalry coming."

The audience member was Debra Hurston, the executive director of the Association for Black Economic Power in Minneapolis. She continued: "In addition to the injustice in the policing system, there's a huge, amazingly gaping hole in the financial system for the people of north Minneapolis. I called that lady on the stage. And I told her that my organization with a staff of one — me — needed a credit union. The community needed help. … She had never met me. She said, 'Debra, we're gonna send you some help.' "

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NCUA workforce diversity efforts show results

National Credit Union Administration officials say they're making strides in diversifying the agency's workforce.

At the NCUA's monthly board meeting on April 21, the new director for the Office of Minority and Women Inclusion, Miguel A. Polanco, highlighted the agency's progress in broadening its talent pool.

"Belonging is what I consider to be a composite indicator, [as] it is the byproduct of getting both inclusion and engagement right within an organization," Polanco said in the meeting. "As an agency, we shoot for a sense of belonging as an optimal state and if we measure for it, we can gauge how effective we have been in delivering the conditions where employees are able to contribute to the best of their ability."

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Women credit-union CEOs debut mentorship program

A credit union advocacy group formed by women leaders is launching a training program to make sure its members are able to grow their organizations and avoid the need for consolidation.

The Credit Union Women's Leadership Alliance was created in December 2020 through the collaborative efforts of 13 female chief executives and the Madison, Wisconsin-based insurance firm CUNA Mutual Group to offer a forum for sharing best practices and policies — as well as other resources — exclusively for women CEOs who run institutions with assets of $300 million or less.

The nonprofit organization seeks to distinguish itself from prior groups by serving as a sounding board solely for female member executives whose day-to-day tasks often extend beyond the C-suite, according to Lily Newfarmer, president and CEO of the $122 million-asset Tarrant County's Credit Union in Fort Worth, Texas, and one of CUWLA's key founding members.

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New bank, credit union diversity leaders share their top ideas

Credit unions and community banks are doubling down on diversity, equity and inclusion initiatives, both internally and as part of their communities.

Whether promoting internal talent or executing a search for new leaders, the boards of many community lenders are enlisting the help of cross-cultural experts to better situate themselves to meet the needs of the underserved and promote inclusiveness.

Two years since the murder of George Floyd, financial institutions have continued to introspectivly review practices and hiring efforts to ensure that DEI-focused campaigns are successful in creating a more inclusive workplace culture, offering opportunities for staff of all backgrounds to rise through the ranks. With the recent racially-motivated shooting in Buffalo, New York, the importance of inclusivity within banks and credit unions will remain at the forefront of decisions to come.

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What’s in a name? A credit union's LGBTQ program finds a wider audience

Credit unions that tailor services for members of the LGBTQ community may find an unmet need among other demographics as well.

Michigan State University Federal Credit Union in East Lansing, Michigan, is nearing the finish line on development of a feature within its digital banking platforms and card offerings that will allow members to set a preferred name and set of pronouns. The program, which is expected to go live before the end of the third quarter, is like many others that allow credit card users, for example, to put their preferred name on the card.

While such services are developed with transgender and nonbinary audiences in mind, they also appeal to other marginalized groups such as international students or indigenous persons, said Amanda Denney, director of diversity, equity and inclusion for the $6.8 billion-asset MSUFCU, which serves students and staff of the university, as well as employees of the state.

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Inside credit unions' work to promote LGBTQ leadership

Members of the LGBTQ community from within the executive ranks of many credit unions and professional organizations are taking steps to ensure that others like them have a path to leadership and belonging.

Financial institutions that have already begun promoting or hiring professionals well-versed in diversity, equity and inclusion are furthering such initiatives by actively gathering and acting on feedback from employees belonging to marginalized groups.

"Executives have to really put words to what they mean by inclusion, [while working to] advocate and create kind of a pathway to that … but I don't think that's enough," said Andrea Cooper, director of talent for the Madison, Wisconsin-based insurance firm CUNA Mutual Group. "When we listen to the voices of our employees, we also recognize what voices might be missing, and how we can be intentional about bringing that perspective into this culture we're trying to create."

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Banks, credit unions broaden efforts to recruit workers with disabilities

With job opportunities for people with disabilities lagging, banks and credit unions are consulting with advocacy groups and entering partnerships to ensure recruitment provides equal employment opportunities.

Credit union executives have begun addressing the potential and existence of unconscious biases within hiring practices, member-facing services and other operations.

Ronaldo Hardy, chief people officer and co-owner of the credit union consultancy CU Strategic Planning in Tacoma, Washington, recently helped the firm found a diversity, equity, inclusion, belonging and accessibility institute for institutional board members that fosters discussion about existing biases in the workplace and helps develop a plan to mitigate the problem.

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How credit unions are addressing diversity at the board level

Credit unions are supposed to be representative of the communities they serve, but their board members don't always reflect their audience's diversity. Many in the industry are working to change that.

Building on the discussions that followed the murder of George Floyd in 2020, many financial institutions have adapted their hiring practices to better address diversity, equity and inclusion — both internal and external — and tailoring their operations based on the new perspectives they bring in.

Within the credit union industry, a longstanding issue of succession planning creates an opportunity to seek out fresh voices and talent, Susan Mitchell, chief executive of the consultancy firm Mitchell, Stankovic & Associates in Boulder City, Nevada, said during a panel discussion at CUNA Mutual's Discovery 2022 conference.

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Credit unions are taking bigger steps for diversity, equity and inclusion

Credit unions are furthering efforts for diversity, equity and inclusion, continuing the industry-wide push for change.

Through initiatives such as the Credit Union Women's Leadership Alliance's Coaching program and a partnership between Raiz Federal Credit Union in El Paso, Texas, and CU Strategic Planning, institutions are addressing the disparity within executive ranks and other levels of management.

These three honorees from this year's list of the Best Credit Unions to Work For are key examples of how financial institutions are improving their recruiting practices so that their employees better reflect the racial and gender demographics of the communities they serve.

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