The doors are open if the vision is there to go through them.
Following NCUA’s recent rule change IRPS 08-2, underserved area adoptions remain a viable growth and diversification strategy for multiple common bond credit unions. Although the new rule raises additional hurdles for approval to serve an underserved area, the value in adding underserved areas to your charter are numerous.
The numbers clearly indicate that credit unions serving underserved areas have stronger growth rates than do the overall credit union community as a whole. Likewise, the ability to offer a lower cost financial alternative to the many pawn shops and check cashing outlets that seem to be on every street corner in an underserved area is an integral part of the credit union heartbeat.
In fact, documentation of service to persons of modest means is a growing credit union priority that can be enhanced by adopting underserved areas. Most credit union core processing systems can monitor new loans, account openings and services extended to residents of underserved areas through their addresses.
Equal in importance to the service and growth opportunities that come from adopting underserved areas, the ability to expand a credit union’s outreach into an underserved neighborhood or community provides a membership diversification option that can help position the credit union to prosper for decades to come.
With over 90 million Americans living in underserved areas throughout the United States, many need a financial partner to assist them with their American Dream of financial self sufficiency. A pawn shop or check cashing outlet is not the partner they need.Underserved areas across America need the lower cost financial services that can be provided by credit unions. The doors are open if the vision is there to go through them.