For the Madison, Wis.-based company's fifth annual "What Matters Now" research report, Native American, Alaskan Native, Indigenous and multiracial populations were given the attention they always deserved, being pulled into the research process as individual groups with unique habits, concerns and preferences. Gen Z was also included for the first time, and addition, the research was conducted in both English and Spanish in order to better capture linguistic nuances and emotions from Spanish-speaking consumers. This approach painted a clearer, more accurate picture of what today's credit union members and potential members need to improve their financial lives, and resulted in more useful recommendations for credit union leaders looking to create impactful membership engagement and growth strategies.

Here are some suggested actions, based both on the latest What Matters Now report and a recent interview with CUNA Mutual Group Director of Multicultural Business Strategy Opal Tomashevska, that credit unions can take to better serve racial/ethnic groups and generations that until now have been frequently overlooked. These suggestions are not one-size-fits-all, as every credit union serves a unique membership and lives out a unique mission, but represent good starting points.

Reach out to Native Americans, Native Alaskans and Indigenous people, who it turns out already love you. One of the most surprising findings from the report, according to Tomashevska, was that these groups were the most likely to say they use a credit union as their primary financial institution. Why? The fact that the credit union movement's values tend to resonate well with non-white consumers likely plays a role, Tomashevska said.

Knowing that they probably won't have trouble convincing these groups of the benefits of credit union membership, credit unions should focus on engaging with them further by listening to them and learning what they need (which may differ by region), and investigating whether there are any barriers that prevent them from accessing financial services. For example, does your credit union allow tribal IDs as a form of identification, and if so, is that advertised? It's also important to help these groups feel welcome by ensuring they're represented in marketing materials, and on your board and frontline staff.

Help members build generational wealth. A majority of the research report's subjects – but especially Native American, Hispanic and Black consumers – said they want their families' future generations to achieve increasing levels of financial success. Credit unions can support this goal by designing products and services that promote long-term financial stability, such as paths to homeownership and alternatives to predatory loans, as well as getting to know members to discover more about their situations and why they are saving money. And, they should educate members on the basics of those products and services and their benefits, instead of assuming they already know that information.

Take a human approach to financial education. Financial worries have ballooned for consumers across the board over the past five years, according to the report. Successfully addressing these worries first requires credit unions to acknowledge them, as well as the fact that the worries will differ from person to person. Second, credit unions need to focus on eliminating the shame that often accompanies financial stress, for example by hiring staff who can easily relate to members' issues and build trusting relationships with them. And, credit unions must ensure all members are aware that they can drop in to discuss their concerns, as some may falsely believe their standing as a member impacts their ability to seek on-demand advice. Tomashevska said it's about "making sure that that service is available to people, that they can come in at any level of financial literacy and any level of income, and be able to have someone in the credit union who can speak with them."

Cater to members who are gig workers or paid in nontraditional ways. According to the report, nearly half of multiracial, Native American, Black and Hispanic consumers are embracing side hustles or multiple jobs, or starting their own businesses to get to where they want to be financially. Accommodating nontraditional working rhythms requires credit unions to implement nontraditional loan programs that reject the longstanding monthly payment due date system. "People want to reach their financial goals, and they're saying one job isn't enough. How are you able to be flexible with them? I would say offering multiple payment options is going to be helpful, because the monthly payment model may have really worked a few decades ago, but it's not working as well now," Tomashevska said.

Showcase your differentiators online. The research revealed that multiracial, millennial and Black consumers are more likely than other groups to check out a financial institution's online presence – including its social media, mentions of the institution in the press and who its partners are – before deciding to take their business there. So, see what comes up about your credit union in a Google search. Are multiple races/ethnicities represented on your leadership's About Us page? Are there stories and photos up that show how your credit union is supporting its community, and do they appear authentic? Do they explain why your credit union supports specific causes?

"All of those things are going to influence multicultural groups, and especially millennials, to want to work with that institution," Tomashevska noted. "You can lose business or gain business just by what's out there online, because they're definitely taking a look at those things."

Above all, Tomashevska emphasized one key action to take before implementing any new initiative targeting specific racial/ethnic groups within your credit union's field of membership: Listen, listen, listen.

"What are they looking for, asking for and calling in for, where you're saying, 'Sorry, we don't have that, but you can go here'?" she said. "It's about capturing that data so that you know what folks are really looking for and interested in."

Natasha Chilingerian

Natasha Chilingerian Executive Editor [email protected]