NEW YORK -
The National Federation of Community Development Credit Unions has introduced a consulting service it calls "CU Breakthrough" to assist CUs in expanding to low-income areas and other communities. The consultants available are from the Federation's member CUs who have, as the Federation noted, "practical experience in serving underserved populations, such as low-income rural or inner-city communities, Native Americans, immigrants, people with disabilities and the growing millions who are vulnerable to predatory lenders."
NFCDCU Executive Director Cliff Rosenthal used remarks at NAFCU's annual meeting in Honolulu to introduce the new consulting service during a session that attracted a relatively strong turnout of larger credit unions. Later, during a conversation with Credit Union Journal, Rosenthal said he has been delighted at the number of credit unions that have been approved for underserved communities, but the approval from regulators is just the first step. "We know from a lifetime of experience that the first step into a new market can be the hardest one, and it always helps to have an experienced guide," he said.
Among the guidance the Federation will be offering will be an "underserved audit" that it says can identify aspects of a credit union's operations that help or hinder access by underserved communities; alternatives to payday and predatory loan programs; special asset-building programs, and more.
It has also established a speaker's bureau that includes Bill Myers, the now-retired CEO at Alternatives FCU, and Audrey Cerise, who led ASI FCU through the recovery from Hurricane Katrina.
During his remarks at the NAFCU meeting Rosenthal provided background on the Federation's bridge partnerships, noting, "We came to the increasing recognition that there was no way in the world that our small group of credit unions can do it alone. Mainstream credit unions can't do it alone either because they don't have the experience Partnership is in our DNA, it's just what we do."
