Serving the underserved: The right growth strategy for credit unions

It didn’t matter where you were, what role you had or the size or seg of your credit union, ten years ago—five, even— “disruption” was the threat. Consumer behaviors had changed. Everyone “went digital” and it felt like an army of agile young start-ups were camped outside the gates, waiting to siphon off members. Now, of course, we know different.

With the benefit of hindsight and myriad mature partnerships across the credit union system, it’s clear FinTech disruptors weren’t a threat so much as an opportunity. The NCUA’s final rule on Financial Innovation was more an exclamation point than a period: To grow, thrive or just survive, credit unions must embrace and integrate new partners and technologies.

Today though, the credit union movement faces a new type of disruption—increasingly multicultural communities.

Population diversity: the new disruption

Take a look around. Whether you’re in a rural town or a metropolitan city, a northern plain or a southern bayou, your community is more diverse than ever before.

The U.S. Latino population in particular is growing rapidly. In 2021, roughly one in five Americans was of Latino or Hispanic heritage. This diverse, multicultural, multiethnic group already represents three quarters of new U.S. workers and wields trillions in purchasing power ... and they’re financially underserved.

Enter credit unions.

Living our mission

Every credit union has its own unique origin story, but our mission to serve the underserved binds us together. It’s that collective promise that makes us a movement, not an industry—and it’s the long-term growth strategy staring us in the face.

We know an individual’s race and ethnicity influences their financial behaviors. Sadly, it also shapes (and often determines) an individual’s financial opportunities.

Acquiring the data, engaging the community: your next strategic investment

Like every growth strategy, serving the underserved (now very clearly represented by the fast-growing, hardworking, politically influential Latino and Hispanic population) will require investment. But the potential return is astronomical.

However, the Field of Dreams strategy won’t work. It’s not enough to simply announce credit unions are open for business, and/or wanting to serve new communities. The brand equity, understanding and excitement isn’t there yet. But with savvy data from partners like Coopera Consulting, and effective marketing operationalization, there is a so much opportunity to build that brand equity.

Latino communities are a logical fit for credit unions. They share credit unions’ family- and community-centric ethos and have a long history of resource pooling and financial cooperation. In addition, young Latinos—the second largest population group in the country!—are looking for a financial partner.

This is the future of our country. This is the “disruption” we face today. And like the FinTech disruptors of yesterday, understanding and embracing this opportunity is the only way credit unions grow and thrive in the future.

Reach out to discover how Mission Brands Consulting can help.