Post by Okwes on Apr 1, 2007 22:17:16 GMT -5
National Credit Union Foundation Posts Resources to Help Credit Unions Serve
Native Americans
The National Credit Union Foundation (NCUF) has released a paper describing
credit unions'opportunitieThe National Credit Union Foundation
The Native American research is based on two NCUF initiatives in 2006:
* NCUF's national survey of credit unions with Native Americans in
their fields of membership
* NCUF's summit of 14 leading credit unions serving Native
Americans
Credit union leagues and foundations from 10 states participated in
these initiatives.
"In a movement built upon a tradition of social responsibility, we feel a
large part of the Foundation's responsibility is to help credit unions reach
untapped markets," explained NCUF Executive Director Steve Delfin. "Our Native
American initiatives were intended to help credit unions move along the
learning path to reach and serve this underserved population."
According to the latest Census, 2.5 million Native Americans live in the
U.S. - nearly 1% of the population that has little or no access to
financial services.
Opportunities
The 11-page paper identifies many opportunities for credit unions
to serve Native Americans, such as:
* Minimal competition - Since only 14% of Native American communities have a
financial institution, opening a branch and/or ATM can generate income to
cover costs while meeting a community need. Some credit unions have placed a
branch in a Native American casino or high
school, or placed an ATM on a reservation.
* Financial literacy - Tribal members need help with budgeting and
long-term financial planning, especially when they receive per capita
distributions, tax refunds, and/or casino allocations. Financial
education can be targeted to Native American adults as well as students.
* Membership expansion - Native American members are very loyal
once you establish a trusting relationship. They will bring family into the
credit union to become members. Then they will look to the credit union first
when they need loans.
* Increased lending - Consumer loans, auto loans, home mortgages
on and off the reservation, construction lending, micro-financing, and
business lending are all opportunities for credit unions.
* Tribal government accounts - Tribal governments can be a
significant source of deposits as they maintain large amounts of funds
in their accounts. In addition, they can attract other tribal
organizations to the credit union
* Community Development Financial Institutions (CDFI) Fund -
Credit unions can apply for and become certified CDFIs if they target
Native Americans. This designation signifies lending in low-income
communities and can help subsidize loan programs.
Model Products & Services
Several survey and summit participants are successfully implementing
model programs they are willing to share with other credit unions able
to serve Native Americans:
* Sponsoring a reservation credit union
* Financial literacy programs
* Credit counseling
* Volunteer Income Tax Assistance sites
* Payday lending alternatives
* Business lending
* HUD Housing Guarantee program (Section 184)
Untapped Resources
Most credit unions may not know about or know how to access resources
available to help serve Native Americans:
* Grant funding - A large pool of funds are available from
governmental agencies and private and corporate foundations to help
non-profits reach Native Americans. For example: The CDFI Fund has a
Native American program where organizations can apply for assistance;
the Annie E. Casey Foundation and the Internal Revenue Service have
provided funds to develop outreach tools to promote access to the Earned
Income Tax Credit program.
* Partnerships - Various types of partnerships can be formed with
organizations already serving Native Americans. These partnerships can
be leveraged to help strengthen a partner's program as well as a credit
union's. For instance: Tribal governments have access to information about the
tribe's programs, organizational structure, business endeavors, networks,
strategic plans, and political players; all of these resources can be leveraged to
help a credit union determine the best way to serve the tribe.
* National support organizations - Several national associations
and organizations are dedicated to serving Native Americans. Some offer
technical assistance and training. For example: The Native Financial Education
Coalition is a network of more than 100 organizations and tribes addressing the
financial education needs of Native people. Also, First Nations and Owesta
provide training on the CDFI Fund's Native American program.
"As with other underserved markets, serving Native Americans requires
some knowledge and expertise that may be new to the credit union but
which can be acquired," concluded white paper author Ruth Jaure, NCUF's
Program Development Director who next month will become the CDFI Fund's Program
Manager. "By learning about best practices and model programs, credit unions
can teach each other. Identifying the various resources available to o
rganizations reaching Native Americans is another step toward acquiring the knowledge
to successfully serve Native communities.w
Native Americans
The National Credit Union Foundation (NCUF) has released a paper describing
credit unions'opportunitieThe National Credit Union Foundation
The Native American research is based on two NCUF initiatives in 2006:
* NCUF's national survey of credit unions with Native Americans in
their fields of membership
* NCUF's summit of 14 leading credit unions serving Native
Americans
Credit union leagues and foundations from 10 states participated in
these initiatives.
"In a movement built upon a tradition of social responsibility, we feel a
large part of the Foundation's responsibility is to help credit unions reach
untapped markets," explained NCUF Executive Director Steve Delfin. "Our Native
American initiatives were intended to help credit unions move along the
learning path to reach and serve this underserved population."
According to the latest Census, 2.5 million Native Americans live in the
U.S. - nearly 1% of the population that has little or no access to
financial services.
Opportunities
The 11-page paper identifies many opportunities for credit unions
to serve Native Americans, such as:
* Minimal competition - Since only 14% of Native American communities have a
financial institution, opening a branch and/or ATM can generate income to
cover costs while meeting a community need. Some credit unions have placed a
branch in a Native American casino or high
school, or placed an ATM on a reservation.
* Financial literacy - Tribal members need help with budgeting and
long-term financial planning, especially when they receive per capita
distributions, tax refunds, and/or casino allocations. Financial
education can be targeted to Native American adults as well as students.
* Membership expansion - Native American members are very loyal
once you establish a trusting relationship. They will bring family into the
credit union to become members. Then they will look to the credit union first
when they need loans.
* Increased lending - Consumer loans, auto loans, home mortgages
on and off the reservation, construction lending, micro-financing, and
business lending are all opportunities for credit unions.
* Tribal government accounts - Tribal governments can be a
significant source of deposits as they maintain large amounts of funds
in their accounts. In addition, they can attract other tribal
organizations to the credit union
* Community Development Financial Institutions (CDFI) Fund -
Credit unions can apply for and become certified CDFIs if they target
Native Americans. This designation signifies lending in low-income
communities and can help subsidize loan programs.
Model Products & Services
Several survey and summit participants are successfully implementing
model programs they are willing to share with other credit unions able
to serve Native Americans:
* Sponsoring a reservation credit union
* Financial literacy programs
* Credit counseling
* Volunteer Income Tax Assistance sites
* Payday lending alternatives
* Business lending
* HUD Housing Guarantee program (Section 184)
Untapped Resources
Most credit unions may not know about or know how to access resources
available to help serve Native Americans:
* Grant funding - A large pool of funds are available from
governmental agencies and private and corporate foundations to help
non-profits reach Native Americans. For example: The CDFI Fund has a
Native American program where organizations can apply for assistance;
the Annie E. Casey Foundation and the Internal Revenue Service have
provided funds to develop outreach tools to promote access to the Earned
Income Tax Credit program.
* Partnerships - Various types of partnerships can be formed with
organizations already serving Native Americans. These partnerships can
be leveraged to help strengthen a partner's program as well as a credit
union's. For instance: Tribal governments have access to information about the
tribe's programs, organizational structure, business endeavors, networks,
strategic plans, and political players; all of these resources can be leveraged to
help a credit union determine the best way to serve the tribe.
* National support organizations - Several national associations
and organizations are dedicated to serving Native Americans. Some offer
technical assistance and training. For example: The Native Financial Education
Coalition is a network of more than 100 organizations and tribes addressing the
financial education needs of Native people. Also, First Nations and Owesta
provide training on the CDFI Fund's Native American program.
"As with other underserved markets, serving Native Americans requires
some knowledge and expertise that may be new to the credit union but
which can be acquired," concluded white paper author Ruth Jaure, NCUF's
Program Development Director who next month will become the CDFI Fund's Program
Manager. "By learning about best practices and model programs, credit unions
can teach each other. Identifying the various resources available to o
rganizations reaching Native Americans is another step toward acquiring the knowledge
to successfully serve Native communities.w