NEW ORLEANS – Credit unions that claim that multicultural members aren't an issue at their credit union may be inadvertently turning away business from the $2 trillion spending multicultural market. According to EthnoConnect President Michael Lee, credit unions may subtly be sending the signal to people from other cultures that " we don't want you here" which is why they may not be going to the credit union branches. Lee says that he guarantees that minorities are the future face of credit union members. Branch environments that operate under an " American-only perspective" of "why don't they do as we do" are not welcoming and put off potential members. "Right now 33% of the U.S. is minorities, by 2050 they will be the majority and have more of an impact on the U.S.," said Lee. "Those people are in the future of credit unions and the good news is that this group does not trust banks, which can be a huge opportunity for credit unions to step in and emphasize that credit union difference." Lee adds that this untapped market makes for the perfect members because they represent a growing population of good savers that prefer and value smaller member-owned institutions. Building trust through financial literacy and community marketing efforts is vital to credit unions reaching this target market.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.