As first seen in Coopera's August 2023 newsletter. Article written by Jennifer Esperanza, Ph.D., Senior Director of Organizational Culture and Strategy

What impedes an organization’s ability to fully implement diversity, equity and inclusion initiatives? What might credit unions do to think of DEI as more than just staff trainings and recognizing cultural holidays, but more as a holistic perspective that employees across all departments see as integral to their work?

The answers to these questions may come from an unlikely analogy: the integration of desktop computers in the workplace during the late 1980s and early 1990s. I may be revealing my age here, but I’d like you to imagine what companies might have experienced three decades ago, when there was a push to get rid of typewriters, filing cabinet rooms, Rolodex cards and other equipment that office workers had been relying on for decades, in favor for using one machine that could apparently do it all. Some of you may even remember experiencing that transition yourselves.

Doing away with those old systems was not easy, was met with trepidation, and wasn’t an overnight success. I remember hearing a colleague insist that their accounting ledgers were more accurate than computer spreadsheets. Another person wondered how she could possibly produce correspondence on company letterhead using a computer, and that her typewriter was still perfectly fine to use. But after a couple of years, these concerns became a moot point when computers and laser printers proved to do those things and more. It completely transformed the processes that had been in place for so long, altered the nature of how we accomplished our work, and allowed us to gather and analyze information in new and different ways. By the time I left that job, we had hired a dedicated IT specialist to ensure that all systems were running smoothly, and to assist employees in their different technology needs.

Integrating computers into the workplace required a huge shift in the cultural mindsets of organizations and individuals, as well as taking a leap of faith that this new perspective would forge new possibilities for growth. This is what is required to fully understand the importance and impact of DEI as a catalyst for transforming mindsets and systems of operation, as well as forging new possibilities for revenue growth.

There is no easy formula to integrate DEI more fully into an organization, but here are a few insights to keep in mind:

Decentralize DEI: If DEI is spearheaded only by someone in Human Resources, your organization is taking a myopic approach. In an article by Fast Company, DEI is not a transactional approach in which you’re merely ticking boxes on a to-do list. It is transformational work that requires a variety of stakeholders to engage in deep, systemic change. The article states, “True DEI work addresses layers beyond what HR was ever meant to—such as the individual growth, improving environmental conditions, fostering change management, addressing societal concerns, and facilitating anti-racism work.”
Establish a dedicated DEI resource. Treat DEI as you would a Chief Technology Officer or IT expert. Consider having your DEI officer report directly to the CEO. If you’re a smaller organization with no full-time, dedicated person, consider a DEI consultant to be just as important as an IT consultant that you rely on for tech maintenance and support. DEI requires trained experts in their field who can be there to hold the organization accountable for its DEI goals (such as the hiring and retention of more diverse staff), while continually providing staff with learning and engagement opportunities.

DEI needs to be woven across the entire credit union and necessitates constant upkeep, consultations and accountability. There is no finish line in this work; it is an ongoing journey, much like continually investing in new laptops for employees acknowledging that progress requires continuous effort and adaptation. Coopera offers a range of transformative DEI services, including consulting, data analytics, and trainings, empowering credit unions to embrace DEI with purpose and drive meaningful change. Let us know how we can help your credit union embrace DEI through a transformative, not a transactional approach.

Transforming Mindsets: Embracing DEI as the New Operating System for Credit Unions

August 1, 2023. Article written by Jennifer Esperanza, Ph.D., Senior Director of Organizational Culture and Strategy

There is no easy formula to integrate DEI more fully into an organization, but here are a few insights to keep in mind:

Decentralize DEI: If DEI is spearheaded only by someone in Human Resources, your organization is taking a myopic approach. In an article by Fast Company, DEI is not a transactional approach in which you’re merely ticking boxes on a to-do list. It is transformational work that requires a variety of stakeholders to engage in deep, systemic change. The article states, “True DEI work addresses layers beyond what HR was ever meant to—such as the individual growth, improving environmental conditions, fostering change management, addressing societal concerns, and facilitating anti-racism work.”
Establish a dedicated DEI resource. Treat DEI as you would a Chief Technology Officer or IT expert. Consider having your DEI officer report directly to the CEO. If you’re a smaller organization with no full-time, dedicated person, consider a DEI consultant to be just as important as an IT consultant that you rely on for tech maintenance and support. DEI requires trained experts in their field who can be there to hold the organization accountable for its DEI goals (such as the hiring and retention of more diverse staff), while continually providing staff with learning and engagement opportunities.

Growing the Hispanic Market and Beyond: Opening and Speeding Up Pathways for Success

June 30, 2023. Authored by Jennifer Esperanza, Ph.D., Senior Director of Organizational Culture and Strategy

Most people had never heard the name Richard Montañez. Born to migrant farmworkers from Mexico, Montañez worked as a janitor at the Frito-Lay snack company in southern California. A motivated worker and an astute observer by nature, he rose up to various ranks in the company including machinist operator to ultimately, Executive of Multicultural Marketing. He has been credited with introducing the world to the popular (and spicier) version of Cheetos, aptly named “Flaming Hot,” which mixes spicy, salty and citrusy flavors often found in Mexican cuisine.

Montañez’s story was recently made into the film “Flamin’ Hot,” which can be viewed on select streaming services. Although this 90-minute rags-to-riches movie may have been distilled in a way that distorts the complicated realities of a person’s entrepreneurial success, “Flamin’ Hot” still captures an essential point that the business world needs to know: that catering to the proclivities and tastes of Latinos is a path to innovation and overall growth for the consumer base in a variety of industries.

According to a 2021 report by the U.S. Bureau of Labor Statistics, “people of Hispanic or Latino ethnicity, who may be of any race, made up 18 percent of the total labor force.” Yet a majority of these workers are not likely to be in positions of influence or have easy access to share potentially lucrative ideas or innovative approaches to work. Richard Montañez was precisely that type of employee—someone with the motivation to help his company succeed but was not in a role that would take and implement his ideas seriously.

Lucy Pérez, a partner at the consulting firm, McKinsey & Company, conducted research on the Latino market. In an NPR interview, she shared that 28% of Latinos interviewed were unsatisfied with the product offerings that are available to them in the U.S. These products range from food to beauty products and include financial services. Pérez says, “One of the big findings for us was that, if companies could address this dissatisfaction, we're talking about an extra $109 billion that Latinos would be willing to spend.”

Like any organization, there are specific pathways for innovative ideas to be launched and avenues for staff to share productive insights. While this ensures minimal disruptions and respect for the systems put into place, such pathways (if too rigid) can come at the expense of the organizations to hear from staff, including Hispanics.

The key is not necessarily to upend an entire system of protocols, but rather to foster a culture in which staff have enough psychological safety to share ideas and make observations that leaders may not necessarily be aware. But there are ways to begin building that culture. Coopera Consulting offers focus groups for credit union employees at all levels to safely share their insights and ideas. As a neutral third-party, Coopera is able to listen with empathy, produce reports that identify common trends expressed by focus group participants, and highlight ideas that could improve the organization. Who knows? The next Richard Montañez could be sitting inside your credit union at this moment.

Growing Hispanic Market

Financial Inclusion Intersectionality

Deep Financial Inclusion Starts with Intersectionality

July 7, 2022. Authored by Jennifer Esperanza, Ph.D., Senior Director of Organizational Culture and Strategy

The nuances of intersectional identities matter when it comes to advocating for deep financial inclusion.

Did you know that Type II diabetes disproportionately impacts Hispanic women at higher rates than white men? Multiple factors impact the likelihood of developing Type II diabetes - including gender, ethnicity and social status. Certain combinations of each lend to being susceptible to different physical illnesses. Just like with physical well-being, a member's financial well-being is influenced by multiple factors which can include socio-economic status, geographic location and education level. Organizations can work toward cultivating deep financial inclusion by considering that a person's financial outcomes are affected by more than just one identity.

“Intersectionality” describes how we aren’t just one identity, but a series of overlapping identity markers such as race, class, gender, sexual orientation, age, ethnicity, religion, disability and more. Collectively, they create a set of lived experiences that are unique to those combinations of markers. This TED Talk by legal scholar Kimberle Crenshaw highlights the urgency of intersectionality when it comes to addressing inequities. Crenshaw explains the most vulnerable demographics in this country have fallen through the cracks of legal, social and economic policies not just because of one identity, but often because multiple types of identities come into play. Historically, institutions (including the world of finance) have not made room for intersectional identities.

For example, a low-income African-American woman who identifies as queer and is in a same-sex marriage may find herself struggling to secure a home loan, more so than a Black woman who is middle-class and in a heterosexual marriage. As a woman, pay discrimination is one example of how gender affects the ability to secure the savings to make a down payment. Moreover, a person who identifies as African-American/Black may have experienced the consequences of redlining; this illegal lending discrimination limits homebuying to small pockets of a city with lower home values. In addition, LGBTQ individuals underindex when it comes to homeownership: 64% of LGBTQ couples are homeowners, compared to a 75% home ownership rate for heterosexual couples. Assisting minority, queer, low-income women to make gains in home ownership requires more targeted interventions.

Credit unions can benefit by looking at their members through this lens of intersectionality. By recognizing the complexity of our members’ identities (and thus, their struggles) we gain their trust in being true partners in ensuring financial success.

Urgent Need for Young, Multicultural Consumers

The Urgent Need for Credit Unions to Focus on Young, Multicultural Consumers

As first seen on CUInsight.com on August 29, 2024. Authored by Víctor Miguel Corro, Coopera CEO.

In today’s rapidly evolving financial landscape, staying relevant is more than a goal—it’s a necessity. Companies, organizations, and brands that thrive are relentless in their pursuit of the market segments that will drive their future growth. They understand that relevance isn’t static; it demands constant adaptation and a laser focus on attracting new consumers. For credit unions, this means embracing the challenge of appealing to young, multicultural consumers who represent the future of financial services.

The urgency for credit unions to evolve cannot be overstated. As the financial ecosystem becomes more competitive and technology continues to reshape consumer expectations, credit unions must ensure they are not left behind. The traditional values that have long defined credit unions—community focus, member-first philosophy, and financial education—are more relevant than ever. However, these values must be communicated in ways that resonate with today’s younger, more diverse population.

The power of demographic data and consumer psychology

To effectively reach young, multicultural consumers, credit unions must leverage demographic data and insights from consumer behavior psychology. Understanding the demographic shifts underway in the United States is crucial. The U.S. Census Bureau projects that by 2045, the nation will become majority-minority, with Hispanic, Black, Asian, and multiracial populations making up more than half of the population. Within this shift, younger generations are leading the charge. These groups are growing not only in numbers but in economic power and influence.

But raw demographic data is only part of the equation. Credit unions must also understand the psychological drivers behind consumer behavior, particularly among those under 35. This age group is navigating a complex financial landscape—saddled with student debt, grappling with high housing costs, and striving to achieve financial independence in a volatile economy. They are not merely looking for a place to park their money; they seek a transformational relationship with their financial institution.

The desire for transformational relationships

Young consumers today, especially those under 35, are looking for more than just transactional banking. They want to build relationships with financial institutions that understand their unique challenges and aspirations. They crave sound financial guidance and tools that can help them improve their financial wellness, manage debt, save for the future, and invest in their dreams.

This desire for a transformational relationship is rooted in the psychology of trust and value. Younger consumers are often skeptical of traditional financial institutions, perceiving them as impersonal and profit-driven. They are more likely to engage with brands that demonstrate a genuine commitment to their financial well-being, that offer personalized advice, and that act as partners in their journey toward financial independence.

Why relevance requires relentlessness

The brands that succeed in attracting young, multicultural consumers are those that are relentless about understanding and serving their needs. They are not content with superficial engagement; they dig deep into the cultural, social, and economic realities of their target markets. They innovate constantly, ensuring that their products, services, and messaging are not only relevant today but are also adaptable to the trends of tomorrow.

For credit unions, this means going beyond the traditional playbook. It’s about creating products that address the unique financial challenges faced by young people today—whether it’s managing student debt, saving for a first home, or investing in a side hustle. It’s about leveraging technology to offer the digital-first experiences that younger consumers demand. And critically, it’s about authentically engaging with multicultural communities, not as a secondary audience but as the primary focus of growth strategies.

The role of data in driving transformation

Demographic data and insights into consumer psychology must inform every aspect of a credit union’s strategy. This includes everything from product development to marketing and member engagement. By analyzing data on consumer behavior, credit unions can identify the specific needs and preferences of young, multicultural consumers. They can develop targeted financial products and services that address these needs, and craft marketing messages that resonate with the values and aspirations of this key demographic.

Moreover, credit unions can use data to personalize the member experience. Younger consumers, in particular, value personalized interactions that make them feel understood and valued. They are more likely to engage with a financial institution that uses data to offer tailored advice, anticipate their needs, and provide solutions that are relevant to their unique financial situation.

A call to action

The time for credit unions to act is now. The industry is at a pivotal moment: either embrace the challenge of attracting and serving young, multicultural consumers or risk becoming increasingly irrelevant. The path forward requires a bold commitment to innovation, a deep understanding of the needs and aspirations of these key segments, and a willingness to invest in the future.

This is not a time for complacency. Credit unions have the values, the community focus, and the potential to lead the charge in financial health and inclusion. But to do so, they must be relentless in their pursuit of relevance. They must recognize that the young, multicultural market is not just another segment—it is the future. By focusing on this market, credit unions can ensure they remain not only relevant but essential in the financial lives of generations to come.

The next generation awaits

The next generation of consumers is ready to engage with financial institutions that understand them, that speak their language—literally and figuratively—and that are committed to their financial well-being. Credit unions, with their unique structure and mission, are perfectly positioned to be these institutions. But they must act with urgency, focus, and a relentless drive to stay relevant.

The future of credit unions depends on their ability to attract and retain young, multicultural consumers. These consumers are not only looking for financial products—they are looking for partners in their financial journey. They want institutions that offer guidance, support, and the tools they need to achieve their financial goals. The time to act is now. The choices made today will determine whether credit unions thrive or fade into obscurity. It’s now or never.

Curb Cut Effect

The Curb Cut Effect

November 1, 2023. Authored by Jennifer Esperanza, Ph.D., Senior Director of Organizational Culture and Strategy

A common worry among the credit unions I consult with is centered on these questions: “If we take on a Hispanic marketing strategy, wouldn’t it neglect other demographics in our field of membership? Could a Hispanic focus send the wrong message that we’re taking favorites instead of serving everyone?” My answer to these questions is simply -- NO. Taking on a targeted strategy does not mean it comes at the expense of others; instead, it means embarking upon an opportunity that opens avenues for overall growth.

Believe it or not, implementing strategies to grow your Hispanic membership creates new pathways to reach African Americans, veterans, people with disabilities, and other historically underbanked groups in your community. Look no further than the “curb cut effect” to ease your organization’s doubters and to learn new ways of approaching a common concern.

What is a curb cut? Curb cuts are those gradual slopes on the corners of a sidewalk, which makes it easier for someone to transition from the curb to the street (and vice versa.) They were initially introduced to accommodate people with physical disabilities, particularly those using wheelchairs or walkers. However, once curb cuts were introduced, the public soon realized that curb cuts are useful for pedestrians with strollers, delivery and construction workers, bicycles, and many others who needed an easier way to move up and down the curb. Laws and programs designed to benefit vulnerable groups often end up benefitting more than the original intended target audience, according to a 2017 article from Stanford Social Innovation Review.

Below are three areas in which curb cuts serve as a great metaphor for anticipating the positive impacts that a targeted marketing strategy can have on credit unions:

Accessibility and Inclusion: Opening opportunities for more than one demographic.

Imagine if your credit union accepted ITINs (individual taxpayer identification numbers) as a legitimate form of identification to open a checking account or apply for a loan. Contrary to popular belief, ITINs are held not only by Hispanics, but also by other resident and non-resident aliens. Canadian “snowbirds” who live in the U.S. during the winter, foreign workers in the tech sector, foreign real estate investors and students from abroad are other common examples of ITIN holders who are in need of banking services, too.

Economic Impact: Creating more efficient processes can lead to generating revenue.

Reevaluating and restructuring your credit union’s processes so that they are more fluid, streamlined, and inclusive can lead to efficiencies, increased revenue, and can speed up processing times. Loan applications often rely on extensive documentation and in-person visits. Many banks and some credit unions now offer online loan applications with streamlined documentation submission. Online loan applications are incredibly helpful for limited-English speakers who may be too shy to make an in-person visit, as well as for members whose work or personal schedules interfere with your branch’s operation hours.

Enhanced Customer Experience: Inclusive spaces suddenly become popular.

Just as curb cuts allowed the physically disabled to have better access to previously unattainable parts of the city; the new type of access has benefited all pedestrians. Similarly, credit unions building a reputation of satisfied members within smaller segments of the market will also garner positive reputations across the market. Our credit union clients who have made strides in overall membership growth often say that it started by attending to the needs of the underbanked Hispanics in their community. A satisfied Hispanic member will sing the praises of the credit union who assisted them by securing a loan or helped them improve their credit score. Soon, co-workers, fellow churchgoers or neighbors are signing up to become members.

In short, credit unions need not shy away from a Hispanic strategy if their organizational goals include growing their overall membership and boosting consumer engagement with their products. We can achieve both!

Opportunities to Serve

Opportunities to Serve a Diverse Field of Membership

June 1, 2023. Authored by Jennifer Esperanza, Ph.D., Senior Director of Organizational Culture and Strategy

Some of my favorite conversations have been with Uber drivers, many of whom are immigrants who share their stories of what it’s like to make a life in the U.S., given the cultural and linguistic hurdles they often face when they first arrive. In 2022, I struck up a conversation with a driver from Iraq, who came to this country over 15 years ago with his wife and two sons. He was a businessman back home, but when he settled in the Pacific Northwest, he needed work right away. The local food packaging plant was a place where many new immigrants and refugees were employed, where individuals from Afghanistan, Burma, Guatemala, Rwanda and other countries could immediately find work.

I asked my driver, “If you don’t mind me asking, what did you think about the banking system when you first arrived in the U.S.?” He proceeded to tell me the story of how he briefly had an account with a recognized national bank when he first arrived. But after receiving his first statement, he was shocked by the exorbitant fees he was being charged monthly, as well as the lack of quality service he felt he was getting from the staff. After complaining about this situation at work one day, one of his co-workers, a refugee from Sudan, explained that joining a credit union was a better option. He directed his Iraqi colleague to a local credit union that didn’t charge as high of monthly fees and provided great customer service. My Uber driver then shared how he immediately took his Sudanese co-worker’s advice, and his entire family has been loyal credit union members ever since.

When it comes to serving a diverse field of membership, credit unions should know that it doesn’t necessarily mean creating strategies that target one particular culture at a time. A multicultural strategy doesn’t necessarily mean hiring a staff member who will connect you with a specific ethnic community. Sometimes, an effective multicultural strategy means just identifying the locations in your community that have a diverse group of consumers who can benefit from a credit union’s services. My Uber driver, an Iraqi who dreamed about saving up for his kids’ college education, learned about credit unions through his Sudanese co-worker. In many communities across the country, there are neighborhoods, places of worship, school districts, factories and other places of employment in which multicultural populations share advice from and recommendations with one another, despite their linguistic and cultural differences.

How well do you know the multicultural spaces in your field of membership? Do you know the factories, service industries, churches and mosques where immigrants from all walks of life gather and share recommendations with one another? You can start by partnering with trusted community organizations that serve these demographics, or by reaching out to the human resource departments of employers that hire diverse workers. Coopera Consulting provides data analytics on areas that can identify the diverse demographics that reside within a given field of membership. These steps can lead to both multicultural member growth and improved financial well-being for all.

Empowering Women

Empowering Women by Strengthening Financial Independence

March 1, 2023. Authored by Jennifer Esperanza, Ph.D., Senior Director of Organizational Culture and Strategy

There’s a scene in the Netflix limited series, Maid, when the main character, Alex, is paying for groceries with her SNAP debit card for the first time. She’s struggling to unload her shopping cart while attending to a squirmy toddler. At the same time, she’s also being scolded by the cashier because some items she’s put on the conveyor belt don’t qualify under SNAP (an acronym for Supplemental Nutritional Assistance Program).

People who have watched Maid have told me that watching this scene is stressful, knowing that Alex is trying her best to make a living after escaping an abusive relationship. It’s even more stressful when we see Alex’s bank balance occasionally popping up on the corner of the screen throughout each episode. Every new expense leads her balance to dip to dangerously low levels: gas for the car they often sleep in, cleaning supplies for her contract housekeeper job, or medicine for her daughter’s relentless cough.

While stressful, these moments on screen are also powerful reminders that these are the daily experiences of women across the country. In 2022, Filene Research Institute produced a report on the economic realities of domestic violence. A staggering 99% of domestic abuse survivors also experienced economic abuse: abusers may have taken out credit cards or payday loans in their partner’s name and tarnished their credit score or have had access to online bank accounts and taken funds away from victims who are trying to gain financial security.

Credit unions are in a unique position to empower women to be more financially independent, and we can simply start by asking the right questions. Below are three questions that front line staff can ask anyone, but can be especially helpful for women who are striving to become more economically independent:

What’s something you’re currently struggling with? Some women may not know what options there are to help them gain financial stability, but they do know what their current struggles are. If you ask this question, an answer like, “Getting to work on time,” can lead to a conversation about auto loans. “Saving up for a house,” can open opportunities to talk about ways to first raise their credit scores. “Finding a better paying job,” might even lead to an opportunity for them to apply for a position at your branch. Asking this open-ended question can help members articulate their most pressing stressors, so that credit union staff can identify the best financial products and solutions.
What’s a goal that you have for your future? This question signals care for your members and your concern for their well-being for the long term. Credit unions claim that they’re all about customer service and their investment in the community, but how are you articulating this to your members? Asking members about their future shows your interest and involvement in helping them meet their goals.
Let me know if you would like us to give you more information on how that [product/service/concept] works? In order to help women gain economic independence, we need to take the stigma away from gaps in our financial literacy. Not everyone has had the family connections, educational background or resources to know how to navigate complicated financial systems. Knowing how to become financially savvy can be intimidating; it’s no wonder that Millennials and Gen Z’ers are flocking to TikTok and YouTube for financial advice. But credit unions can be a more trusted resource because influencers may not reveal some of the hidden realities and costs during their 30-second or 30-minute financial tutorials

There’s the old saying, “knowledge is power,” although, women have historically been left out of opportunities to gain the necessary knowledge to increase financial power. Let’s commit to asking the right questions and sharing the information and support that’s long overdue.

Moving the Needle

Moving the Needle on DEI

November 10, 2022. Authored by Jennifer Esperanza, Ph.D., Senior Director of Organizational Culture and Strategy

Organizations across the country have made efforts to implement diversity, equity, and inclusion (DEI) strategies into their everyday operations. From staff trainings on unconscious bias, plans for diversifying leadership teams, or initiatives to recognize a variety of cultural holidays—many industries are beginning to normalize DEI – which is a very good sign of how far we’ve come.

How do we ensure that DEI efforts are here to stay, and are not just a temporary response to nationwide outcries for racial reconciliation, narrowing the socio-economic wealth gap for minorities, or providing opportunities for empowerment among those who have historically been underrepresented? How does the credit union ensure that it stays true to its DEI goals?

A report from Harvard Business Review identified three main areas that organizations need to focus on to keep DEI’s momentum going: the DEI strategy must have accountability partners, the DEI plan must be data-driven, and organizations should appoint a qualified DEI leader to spearhead efforts.

Below are a few ways Coopera encourages its clients to successfully implement their diversity, equity, and inclusion efforts. While trainings for board and staff are absolutely necessary and should remain as part of the strategy, here are five additional ways to move the needle forward on DEI:

Create accountability measures that check on the progress of your organization’s DEI goals, especially when it comes to reaching hiring, retention and membership diversity goals.
Market products to resonate more with the needs of specific demographics. (i.e. same sex couples, adult caregivers of elderly parents, first-generation college graduates, non-English speakers, etc.)
Establish internships for first generation, underrepresented students as well as collaborating with Historically Black Colleges and Universities to create pipelines for diversifying your staff.
Cultivate strong partnerships with local organizations involved in community development and revitalization.
Make a commitment to supplier diversity by pledging to be regular patrons of two to three independently-owned businesses.

Prioritizing even just a few of the inclusion efforts listed above will help DEI remain top of mind at your credit union and keep the momentum strong for deep inclusion to be naturally embedded into your organization’s culture.

Improve Financial Inclusion

Improve Financial Inclusion by Starting with your Organizational Culture

May 12, 2022. Authored by Jennifer Esperanza, Ph.D., Senior Director of Organizational Culture and Strategy

The demands of organizations to accelerate progress on their diversity, equity and inclusion initiatives can often feel overwhelming—especially for staff members who have the primary responsibility of ensuring DEI implementation. This is a crucial, but not an impossible task, especially if credit unions carefully frame DEI as an organizational effort, rather than the responsibility of a select few.

One way to begin strengthening the organizational narrative around DEI efforts is to highlight the ways in which credit unions originated from the need to promote financial inclusion and social belonging. Since its inception in the early 20th century, credit unions in North America served as an alternative for those who had been denied access to savings and loans opportunities by traditional banking institutions. Moreover, credit unions that began as a select employee group (SEG) or is still currently one, can also leverage their narrative around this particular story to underscore efforts around financial inclusion for workers.

A strong organizational narrative around DEI also entails taking an strengths-based approach: A 2021 Gallup survey of staff members strongly agreed that when organizations recognize and show appreciation for their employees’ assets, these staff members were twice as likely to agree that their organization cares about DEI.

Starting simple is the ideal way for credit unions to dive into the work of DEI: updating your organizational narrative and taking a strengths-based approach are two examples of how to engage in DEI in meaningful ways. Starting simple also avoids the “analysis paralysis” that often plagues organizations from getting started on their DEI journeys, for fear that it requires experts from the very beginning. We need to dive into the work, refine our tactics as we go along, and always reiterate the collaborative nature of DEI initiatives.

Leveraging Analytics and Market Research

Leveraging Analytics and Market Research for Targeting Emerging Multicultural Consumers in Credit Unions

As first seen on CUInsight.com on February 26, 2024. Featuring Víctor Miguel Corro, Coopera CEO.

In today’s dynamic market landscape, understanding consumer behavior and preferences is vital for any business looking to thrive, especially in the retail financial services sector. With the emergence of young, multicultural consumers as a significant demographic, leveraging analytics and market research becomes even more crucial. By harnessing the power of data-driven insights, credit unions can tailor their outreach strategies effectively, tapping into the needs and aspirations of this diverse consumer base. Let’s delve into the benefits of analytics and market research in reaching and serving emerging multicultural consumers in the retail financial services sector.

Imagine being a financial wizard, knowing exactly what makes each member tick. That’s the power of data and research in today’s diverse market. Especially when it comes to young, multicultural consumers who are shaking things up. Don’t get left behind! Here’s why data and research are your secret weapons:

See the world through their eyes: Ditch guesswork and get real insights into what drives these savvy consumers. Analyze data, spending habits, and cultural influences to unlock their desires. Think digital banking and financial education tailored just for them!
Speak their language (literally!): No boring one-size-fits-all marketing here. Craft campaigns that resonate with their cultural diversity, languages, and dreams. Personalized messages build trust and lasting connections, like magic!
Products they actually want: Tired of offerings that miss the mark? Data shows where the gaps are. Create new savings accounts, accessible credit options, or digital tools that fit their unique needs. Customization is key to happy customers!
Play it safe, win big: Data and research aren’t just about selling. They help you manage risks and follow the rules. Understand cultural and financial factors to assess credit risks and catch fraudsters. It’s a win-win for everyone!
Happy members, happy you: Imagine a world where everyone feels welcome and understood. Data helps you cater to diverse preferences across mobile apps, websites, and support. Plus, predict their needs and offer personalized solutions – now that’s service!
Trust is everything: In finance, trust is gold. Research reveals what matters to multicultural consumers, like transparency, inclusivity, and community involvement. Align your brand with their values and watch trust and loyalty bloom!
The world is your oyster: Data doesn’t just show you who’s there, it shows you where to go next. Uncover new trends, untapped markets, and evolving preferences. Expand your reach and stay relevant in this ever-changing game!
Do good, feel good: Young, multicultural consumers care about making a difference. Research shows their interest in sustainable banking, impact investing, and social responsibility. Show them you’re on the same page, and attract customers who want to change the world with their money!

Remember, data and research aren’t just numbers, they’re the key to understanding and connecting with real people. Use them to tailor your approach, build trust, and unlock the potential of this diverse and powerful demographic. It’s not just good business, it’s the right thing to do!

Brady Bunch

“Here’s the story”: What merging credit unions can learn from The Brady Bunch

As first seen on CUInsight.com on May 31, 2024. Authored by Jennifer Esperanza, Coopera Senior Director of Organizational Culture and Strategy

A funny thing happened while I was conducting a focus group of combined staff members from two credit unions that had recently merged: I started thinking about “The Brady Bunch.” While listening to participants’ experiences of this major organizational shift, my mind wandered back to episodes of this staple of American pop culture. As the participating staff members talked about their credit union before and after the merger, some of the things they expressed sounded eerily like family members who suddenly found themselves navigating the ins and outs of a blended family.

For those of you who aren’t familiar with “The Brady Bunch,” the premise of the show is that Mike, a widower with three sons, marries Carol, a divorcee with three daughters and the show follows them through their journey of becoming one family. The first few episodes take place during the early days of their remarriage as Mike and Carol each manage the union of their two families. Will the children get along? How will the girls feel about moving into a new house?

In the first episode, Bobby the youngest son hides a photograph of his biological mother, worried that his new stepmother and stepsisters wouldn’t approve of seeing her photo once they move in. Ultimately, Mike reassures Bobby that it’s okay to openly display his mother’s photo in the house.

Back at the credit union where I was conducting the focus group, I couldn’t help but think about this episode as one credit union employee expressed worry about the possible loss of personal identity or brand identity, post-merger. While this analogy can only go so far, there are some interesting parallels between a credit union merger and a blended marriage.

First, merging two organizational cultures into one is not unlike combining two separate households. Blending the logistics of two entities is a complicated endeavor, especially because each has existed for some time with its own identity – does one keep, change, or hyphenate their surname? Each unit operates with their own social dynamics – what’s the rule about using devices at the dinner table? And each brings a unique set of standards – how often does the house need vacuuming?

A credit union merger grapples with similar existential matters: forging a new brand identity, contending with a common core processor and establishing new protocols for member services. All of this must be established pre, mid and post-merger, all while ensuring that the logistics of internal operations and external member-facing experiences are not negatively compromised.

But of equal importance is that blended families, particularly those with children, and credit union mergers must somehow forge a common unified culture. After talking with several friends who were happily raised in blended families and thinking back to old episodes of “The Brady Bunch,” these now-adult children say there was deliberate effort by both parents not to show biases toward any one side. Parents openly expressed affection and support for their children from both sides. They also made efforts to facilitate bonds through regular meals together, family vacations and shared inside jokes, which cultivated a shared experience identity that was unique to their new family unit.

Yet during the focus group, one staff member stated that while the two organizations planned the merger as an equal partnership, it felt like the larger credit union’s needs dominated and superseded her credit union, the smaller of the two. Her colleagues nodded in agreement.

For example, she pointed out that meetings often took place at the headquarters of the larger credit union, which the other credit union insisted was only because they had more space, and elements of the new brand were holdovers from the larger credit union. Regardless of the extent to which this claim was true, did the credit union leadership know that staff members felt that biases existed? If so, what was being done to at least make sure that footprints from the smaller credit union are still visible and are of value to the entire organization, post-merger?

Another focus group participant also voiced concerns about inconsistent communication from leadership. “[Management] say they’re being transparent, but they’re being selective about what to be transparent about,” he said. While not every aspect of a credit union’s ongoings must be shared with the staff, a standard of what will be communicated and how often, should be made transparent. No one likes to be caught off guard as this signals a lack of consideration for those who have to execute on major directives given by leadership. Consistent and transparent communication forges a strong base of trust among stakeholders at all levels.

During another focus group with a pair of merged credit unions, I learned from staff members that an announcement had been made about when the union would become official, but little effort was made to facilitate kick-off celebrations for the two organizations to get together, aside from a few meet and greets between branch managers.

Just like blending families and their households, a lot of prep work must be done before the merger takes place. Prior to any merger, leaders would be wise to learn more about the unseen forces involved within each organization’s culture: the working norms, features that hold intrinsic value to the organization and its members, as well as how internal decisions are made.

As a trained social scientist, I often teach and write about how the most sustainable cultures are ones in which shared values, ideas and habits are organically created. Rather than a contrived set of ideas and practices that are carefully engineer by those in leadership roles, most viable organizational cultures are created by a myriad of stakeholders at different levels and can evolve over time as everyone has had a chance to “get into the groove” of things.

Below are three approaches to support blended family dynamics that credit unions should also keep in mind before, during and after coming together.

Address differences: Just as step-siblings may have trouble feeling like outsiders, credit unions should be mindful of potential friction between staff. Create meeting times and spaces for open communication for both sides to share their unique perspectives on the credit union and recognize how some of these can be assets post-merger.
Build trust: In a blended marriage, it takes time to build trust between new family members. Similarly, merging credit unions need to be aware and communicate to staff that organizational trust does not happen overnight and can sometimes take years. But most importantly, trust is often gained by being vulnerable with colleagues: be open about what is still unknown or what gaps may exist, and invite stakeholders to be part of the solution.
Invest in people: Just as in “The Brady Bunch,” the folks in charge, Mike and Carol, and in our example, credit union leadership, should provide support and opportunities for both sides to adjust to the new culture and learn how to become a unified family. Try to mitigate any claims of favoritism by using the physical spaces, features and staff from each credit union equally.

By taking the above into account, credit unions can navigate the cultural aspects of a merger just like a blended family works through its challenges. Consider using a third party consultant to help facilitate focus groups or help plan pre, mid, post-merger activities that will ultimately foster a stronger, more unified whole.

Strong Business Case

The Strong Business Case For Pursuing DEI - And Now B

As first seen on CUManagement.com on January 5th, 2024. Featuring Víctor Miguel Corro, Coopera CEO.

It’s worth it to push back against any pushback so you can fully embrace (and reap the benefits of) diversity in your membership and staff.

Many people in the credit union movement like to talk with pride about how today’s credit unions were founded on the principle of serving people “of modest means” who might not have been able to get financial services elsewhere. Many would say that credit unions are all about financial inclusion and the diversity of membership and staff that supports it.

Yet today there are reports of pushback in the credit union world against making changes to traditional practices to transform credit unions into good servants and employers of people from growing demographic and traditionally marginalized groups—against what has most recently been called diversity, equity and inclusion.

This pushback is happening even as data shows that businesses in general and credit unions in particular reap business benefits from being more inclusive.

This pushback is happening even as the media and big banks continue to try to make the case that credit unions should no longer be tax-exempt—because they are getting “too big” in asset size (the largest banks still dwarf the largest credit unions) and because, they say, credit unions aren’t doing a good job with financial inclusion, whether that’s in the handling of lending or overdraft fees.

Take a few minutes now to look at some data and hear what people who spend a lot of time thinking about these matters have to say about the business case for DEIB, the pushback against it and what credit unions should do next.

DEI Builds Financial Strength

Credit unions that pursue multiple DEI best practices see financial benefits, according to research done by Filene.

The study, DEI Practice Bundles & Credit Union Performance: Results from Filene’s DEI Practices & Policies Survey, 2022, found that “credit unions with (a) DEI [diversity, equity, inclusion] strategy and governance practice bundles report higher return on assets and net income than credit unions without these practice bundles in place.” See figures 2A and 2B for details. (The research defines “bundles” as groups of practices, especially those that link DEI to strategy.)

In addition, a 2020 report from McKinsey companies across industries—not just credit unions—benefit financially from DEI.

Specifically, the report says, “Companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians. It also found that “companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians.”

The Business Benefits of Pursuing Belonging (Bolstered by Pursuit of Equity)

In recent years, many organizations have added a B for belonging to DEI, making the acronym DEIB. Growing amounts of data support the idea that businesses in general and credit unions in particular benefit from efforts to make employees feel that work is a place of belonging for them.

For example, research published in the Harvard Business Review in 2019 found a clear link between employees’ sense of belonging and a thriving business organization.

Evan W. Carr, a quantitative behavioral scientist at performance management firm BetterUp, and his team found that “if workers feel like they belong, companies reap substantial bottom-line benefits. High belonging was linked to a whopping 56% increase in job performance, a 50% drop in turnover risk, and a 75% reduction in sick days. For a 10,000-person company, this would result in annual savings of more than $52M.

“Employees with higher workplace belonging also showed a 167% increase in their employer promoter score (their willingness to recommend their company to others),” the research report continues. “They also received double the raises, and 18 times more promotions.”

An inexpensive but effective way to strive to help all employees feel a sense of belonging and like they’re being treated equitably is to ask them about where things are now and what they would recommend doing next.

CUES member Emma Hayes, chief learning & engagement officer of $49 billion SECU, Raleigh, North Carolina, recommends “a serious listening strategy” that encompasses listening both to employees and board members (who are both internal team members as well as members of the credit union and community). She suggests a combination of one-on-one sessions, small focus groups and surveys.

Ask three questions, Hayes says:

What are we doing that you really, really love—the thing that would mortify you if we stopped doing it today?
If you could launch any product or service at the credit union, what would it be?
Is there anything else we could do to better serve you?

Then be sure you do something with the responses, Hayes advises.

“If you don’t follow through there’s no need to ask,” she emphasizes, noting that not everything that’s suggested may be doable nor can everything happen at once. As acknowledgement of the responses and preliminary steps is given, a good thing to say can be: “We’re not there yet but we heard you.”

Using Assessments to Show Opportunities With Diversity and Inclusion

As CEO of Coopera (kо̄-PAIR-a) Consulting, Victor Miguel Corro helps individual credit unions think about how to expand their reach within their existing communities—often a great business opportunity. He does so by helping them assess both their fields of membership, so they can see how many members and potential members they’re not serving fully as well as their organizational readiness to embrace DEIB.

Oftentimes, Corro finds through these assessments that a credit union client is not fully serving people who have been traditionally underserved, such as Black and African Americans, women and Hispanics. While credit unions might not yet have a lot of experience serving members who are part of these groups, there can be lots of business value in learning how to do so.

“That’s a younger population, an emerging population and a largely unbanked population,” Corro notes of the Hispanic community.

Research from Pew supports this idea: “The median age of U.S. Hispanics increased from 26.3 years in 2010 to 29.5 years in 2021. Yet they remained much younger than the overall U.S. population, which had a median age of 37.8 in 2021.”

So, discovering that you have Hispanic people in your community that you could serve and taking action to try to serve them well opens an opportunity to establish relationships with highly coveted young consumers, Corro points out.

Another group that presents a business expansion opportunity for credit unions is people in their fields of membership who don’t have Social Security numbers from the Social Security Administration but do have individual taxpayer identification numbers from the Internal Revenue Service.

Research published by Filene in May 2023 included a conversation with a credit union that shared its four-year journey lending to people with ITINs and how it grew its ITIN portfolio from $640,000 in 2019 to $5.3 million in 2022.

The authors of the same report write, “Fair lending practices should encourage credit unions to offer ITIN loans with the same underwriting, interest rate scales and documentation requirements with no additional fees. Most credit union leaders we interviewed shared they experience zero to very minimal delinquencies and net charge-offs when implementing the same lending practices as traditional loans.”

And of course, looking to serve new markets returns the conversation to who on the team at the credit union can do a good job in doing so. Credit unions may need to hire some new people who understand the new members the credit union is trying to reach—or to update the training for current staffers. Alison Carr, CUDE, I-CUDE, and Scott Butterfield, CCUE, CUDE, of Your Credit Union Partner provide a great summary of the many potential business benefits of having a diverse staff.

Drives growth. A diverse team enables the credit union to better understand, reach and better serve diverse consumers.
Enhances the member experience. Having staff members who reflect the diversity of the community tells your members and potential members that you see them and that they are more likely to be treated equitably.
Improves employee engagement. Having a culture where you can ask questions, promote learning and exchange of ideas and welcome different experiences drives employee engagement.
Improves financial performance. Building diversity on the credit union’s team can help create more diverse thinking, which in turn can yield better decisions and a positive bottom-line impact through increased efficiencies, productivity, creativity and innovation.

And those ideas circle back again to the business benefits of operating inclusively.

Inclusion efforts “shouldn’t be just about the bottom line, Inclusion is what sets up apart.” Hayes says. “It’s the only way for us to argue for our tax exemption. If we become member elite organizations, we’re no longer credit unions, people helping people.”

What Does Pushback Look Like—and What Can Be Done About It?

While the data in support of the business case for diversity, equity and inclusion is growing, pushback against taking action to boost DEIB in credit unions is real. What does such pushback look like, and what can credit unions do about it?

“Pushback looks like questioning—not curious questioning, but leading questioning,” Hayes says. These questions might sound something like “Tell me why this …” or “Can you help me understand why we would invest that kind of time, that kind of money …,” or “Is that the best use of so and so’s resources?” “Some pushback is really, really subtle.”

Pushback can also come in the form of withholding of resources, Hayes says. The first answer to a request for resources for staff or member inclusion efforts might be “yes.” But if feet drag and funds are slow to arrive or never arrive, that’s pushback.

Corro says credit unions can also experience pushback when legacy members come into a branch and demand to know why the credit union is, for example, putting out marketing messages clearly designed for people who speak Spanish.

“You actually have to train people to anticipate this” sort of thing, Corro says. While a challenge from a member isn’t the norm, front-line staff need to “know to say, ‘We’re doing it because we want to serve the whole community, and it makes the credit union stronger … and so we can better serve you …” or ‘The Hispanic or African American segments of the population are growing in the community, and we want to include them so we have a better community.’”

Besides training staff, what can credit unions do to better grapple with pushbacks?

“More conversation, whitepapers, research to show the economic benefits will help with this,” say Carr and Butterfield. “For example, we have a few boards that push back on ITIN lending because they don’t want to serve non-U.S. citizens. However, when they see the Filene report and see the profitability, growth and loyalty results from immigrants, most change their perspective about DEI.” A vision the two have for the CU DEI Collective is that the organization can be a leader in helping to generate information that can drive inclusion forward.

Getting away from politicizing conversations about inclusion will likely be helpful too.

“We travel the county for strategic planning sessions,” Carr says. “We are in blue states and red states. … It’s clear that DEI is more widely embraced in blue states. However, there are still credit unions in red states that are actively pursuing DEI. More work needs to be done to overcome the negative political narrative to educate boards and management that DEI is a proven differentiator.”

Corro, Hayes, and Carr and Butterfield all say the need for inclusion—of diverse members, of diverse employees—is not a passing fad, but here to stay. Here are Carr and Butterfield on the subject:

“The demographic changes in communities are clear. Credit unions that do not embrace DEI will at some point become irrelevant in the diverse communities they are chartered to serve. They will fail to attract the diverse talent they need to grow. It might take a while, but change will be required. Plus, the next generation that credit unions are all focused on engaging are very diverse, and they place a high value on social responsibility and DEI.”

Lisa Hochgraf is CUES’ senior editor.

Credit Union Digital Frontier

Credit Unions and the Digital Frontier: Strategies for Fostering Authentic Virtual Engagement

As first seen on CUInsight.com on October 27th, 2023.

In an era where 4.89 billion individuals across the globe, ages old and young, are active social media users, the financial world stands at a digital crossroads. An outstanding 32.9% of people between the ages of 35 and 64 choose websites and apps to engage with their financial service provider, and an overwhelming 79% of American Gen-Z and Millennial users turn to social media for financial guidance. Yet only 30% of financial service companies are currently implementing or have a solidified digital transformation strategy for their organization. As seen in these statistics, the digital engagement of our current and prospective members is ever present and increasing. But is our industry ready to answer the call of the digital age and are we ready to invest in strategies that can solidify our presence as we pursue relevance, member retention, and lasting relationships?

Guided by insights from Unitus Community Credit Union, this article explores different tools and strategies that credit unions can leverage to embrace the digital future and successfully retain current members and acquire new ones in the era of the digital media frontier.

Intentionally and authentically story tell: In today’s digital age, where users find themselves increasingly interacting with financial service providers digitally, how your organization is portrayed online may be the only means through which users form a perception of you. The way your organization structures its digital environment can either encourage deep, empathetic relationships, or push them towards transactional engagement. The end result depends on how you intentionally tell your credit union’s story through a digital lens. Lori Fink, AVP of Marketing and Brand Development at Unitus Community Credit Union sheds light on their ability to share their brand and mission through intentional storytelling as she notes, “The digital space provides a unique opportunity to share this brand message through stories that generate compassion and empathy, feature a strong call-to-action, and include diverse voices, communities, and cultures. At Unitus, our “There is More that Unites Us” messaging is an authentic brand proposition that highlights our belief that we are stronger together and we all face the same struggles. As an inclusive financial institution, our goal is to help every member through each of their life-defining moments.”

Curate a digital space for learning: Zogo Finance, a financial literacy startup, had found that 75% of Gen-Z university peers did not know what a credit union was. Many millennials think credit unions only offer basic services or that they do not qualify to become a member. It’s evident that credit unions are facing both an awareness problem and a pressing need for a fresh approach to help members understand the credit union system and its principles of membership. The solution may lie within the digital realm. Lori Fink shares her thoughts on how Unitus Community Credit Union is leaning into the digital space to educate current and potential members: “We need prospects to better understand the credit union model, its not-for-profit structure, and that we are a full-service financial institution. Our corporate responsibility, community development, and financial education programs show members and prospects that we are here for the greater good. At Unitus, we strive to reach people where they are, putting technology solutions in the palm of their hands. It’s imperative that members and prospects—especially younger generations—understand we have the apps and digital platforms they expect.” Through the curation of learning spaces within your organizations’ digital platforms, users can gain a deeper understanding of credit union fundamentals, align with your mission, and contribute to an increased awareness of both your organization and the broader industry – all at their fingertips.

Failing fast and rejecting perfection: Digital media platforms, particularly social media, often promote the idea that all content is expected to be refined from the initial launch. I’m here to assure you that it shouldn’t be the case; in fact, users aren’t seeking perfection in the first place – they’re seeking a more personable and humanized approach to digital media content. Instead of delaying your organization’s entry into the digital media space, consider embracing the “fail fast” mindset, letting go of the pursuit of perfection and letting authenticity and insight take the driver’s seat. The key is to not hold back from sharing content. Embrace the experimentation process to find what fits with your brand and mission. Know that even if the initial returns aren’t as expected, you can pivot and adapt, as long as you remain strategic and authentic to your brand, the people you are aiming to serve, and the feedback you are receiving from your users. Lori Fink speaks to Unitus Community Credit Union’s strategic digital media strategy shift for their respective social media platforms: “On LinkedIn, we’ve seen engagement and followers up 20% as we’ve adjusted our strategy to highlight our brand, our community engagement, and our company culture.” It’s not the perfection users are here for, it’s for the story you tell, and how they see themselves as a part of it.

As your organization embarks on its journey into the digital realm, don’t be overwhelmed. It’s more important to get started than to remain stagnant. Even implementing one or two initiatives at a time will help your credit union foster a more meaningful connection with current and potential members. Embrace the digital frontier by having confidence in your ability to connect through authentic content. And most importantly – have trust in the power of your credit union brand, mission, and the content you aim to create.

The Evolving Demographics Of The USA

As first seen on CUmanagement.com on September 14th, 2023. Authored by Víctor Miguel Corro, Coopera CEO.

Unveiling cultural nuances in reaching Latinos

The United States of America has long been a nation built by immigrants seeking new opportunities and better lives. Over the decades, the country's demographics have undergone significant transformations, with one of the most noticeable shifts being the rising numbers of the Latino population. As this demographic change continues to shape the fabric of the nation, businesses and brands must adapt by understanding the cultural complexities that define this very nuanced community. The first thing to understand is how this is not a neatly defined constituency, but rather an amalgam of lived experiences. To effectively engage with Latinos, credit unions need to go beyond surface-level outreach to gain a profound understanding of their diverse identities and experiences. As we celebrate the Hispanic Heritage Month, here are some thoughts about this community.

The Latino Demographic Landscape

The Latino population in the U.S. has been growing at a remarkable pace, and projections suggest that this trend will continue in the coming years. Latinos constitute nearly 20% of the total population, making them the largest ethnic minority group in the country. 63 million people strong, this group encompasses individuals from diverse countries such as Mexico, Argentina, Cuba, the Dominican Republic, and more, each contributing distinct cultural elements to the broader U.S. Latino identity.

Cultural Nuances: A Necessity, Not an Option

To effectively tap into this burgeoning market, credit unions must recognize that Latinos are not a monolithic group. Within this demographic lies a rich tapestry of languages, traditions and values, each tied to their specific country of origin. An outreach effort by any organization requires deep understanding of the generation, language fluency in English and Spanish, country of origin and acculturation level to the U.S. A one-size-fits-all approach will undoubtedly fall short in resonating with the various segments of the Latino population.

Language as a Bridge

Language is a cornerstone of culture, serving as both a barrier and a bridge to effective communication. Spanish remains a vital aspect of the Latino experience, especially among first-generation immigrants. A multilingual approach to marketing can be the key to unlocking this demographic's potential. Brands that cater to Spanish speakers demonstrate a willingness to meet Latinos where they are, and in doing so, establish a foundation of trust and understanding. However, it's important to note that not all Latinos speak Spanish, particularly second and third-generation individuals who may primarily use English. A nuanced understanding of language preferences is therefore paramount.

Cultural Celebrations and Traditions

Embracing cultural celebrations and traditions is another avenue for credit unions to connect with the Latino demographic. Family celebrations and Latin American national holidays hold significant cultural importance for many Latinos. However, it's essential for brands to approach these occasions with sensitivity and respect, avoiding tokenism or cultural appropriation. A genuine appreciation for these festivities can create meaningful connections, but only when driven by authenticity and cultural awareness. For example, don’t expect a Cinco de Mayo celebration at your branches to appeal if your local market is mostly of Caribbean descent. And if you highlight Cinco de Mayo, have a clear understanding of its context and meaning.

Representation Matters

Representation matters deeply to all communities, and Latinos are no exception. Including Latino voices and faces in marketing campaigns, product design, and decision-making processes not only reflects inclusivity but also acknowledges the unique perspectives and contributions of this demographic. Authentic representation goes beyond ticking boxes; it involves meaningful engagement and partnership with Latino communities to ensure that their narratives are accurately portrayed.

Localizing Marketing Efforts

Understanding the regional diversity within the Latino population is a crucial step toward effective engagement. Latinos in different parts of the U.S. may have distinct preferences and cultural norms, influenced by the region they reside in—and the family’s country of origin. Tailoring marketing strategies to cater to these regional differences demonstrates a commitment to understanding the intricacies of Latino identities.

The changing demographics of the United States, with the significant growth of the Latino population, present both challenges and opportunities for our industry. To create relevant and impactful connections, we must embark on a journey of cultural discovery and sensitivity. Acknowledging the diverse backgrounds, languages and traditions within the Latino demographic is not only respectful but also smart business practice.

Víctor Miguel Corro is CEO of Coopera Consulting. He has over 25 years of experience working in international and cross-cultural environments in the private and non-profit sectors.

For over five years he has been at the helm of Coopera Consulting, a market analytics and cultural change consulting firm that engages organizations and prepares them to reach out and serve underserved market segments. Corro is co-founder and first chair of the Credit Union DEI Collective, an expanding group within the credit union movement devoted to furthering DEI, a shared cooperative principle.

Victor is a first-generation immigrant to the U.S. and was born and raised in Panama. He came to study at the University of Wisconsin as a Fulbright Scholar. He has degrees in International Economics and Latin American Studies. He has worked in 90+ countries, is an avid photographer, serves on several boards, and currently lives in Wisconsin with his wife and two children.

Expanding Your Reach Through the Power of Translation

As first seen on CUInsight.com on September 5, 2023.

Growing up as an immigrant, I was my parents’ translator. As soon as my siblings and I learned enough English to be considered fluent, we began translating at parent-teacher conferences, at stores when our parents had to make a return, or to order delivery on the weekends. Our parents’ 8-5 jobs didn’t allow for much time to take English classes – and when they did have time, they tried to spend most of it with us. Their inability to communicate in English created many barriers for them financially and professionally, including opening bank accounts to applying for loans and starting their own business. In the early 2000’s there were few financial resources in Spanish available in our community.

In this day and age, I get frequent ads on Hulu, Peacock and other streaming services in Spanish. From insurance agencies to car dealerships and big banks, companies are translating their messaging to Spanish. When I take a walk at the local park, the “Park Rules” are now listed in English and Spanish. At my local DMV office, residents have the option to take their written driver’s test in Spanish. Government entities, schools, and hospitals have invested in Spanish materials and hired bilingual staff, because Spanish communication is no longer a “nice to have” but a requirement to fully serving communities. As many industries make adjustments and changes to accommodate Spanish language, credit unions can’t be left behind.

Credit unions are increasingly seeing value in creating growth strategies to increase multicultural membership, including ways to be more effective at communicating with members in their preferred language. To support these initiatives, it is critical that credit unions develop specific benchmarks to successfully implement multicultural strategies – such as hiring bilingual personnel, community development partnerships and translating materials. It is essential to methodically track progress for each of these benchmarks on an annual basis in order to prioritize which needs are being met in a timely manner and consider if new benchmarks need to be created to reach the goal of enhancing member communications.

There are over 42.5 million Spanish-speaking individuals in the U.S., making us the 2nd largest population of Spanish-speakers in the world! More and more companies are making the decision to translate, market and create user-experiences in Spanish, not as a new strategy but as a necessity. However, in the credit union industry it is often seen as a risk or legal implication. Coopera’s history of tracking Hispanic member growth in the credit union industry proves that the leading ethnic group to growing credit union membership is Hispanics. Not only are Hispanics increasing credit union membership, but they are lowering the average age of members, with many of them being under the age of 40, making them the most active in their financial needs. Coopera’s data shows that the top trending products with Hispanic members are checking accounts and auto loans, and there are high penetration rates with mobile banking apps and debit card usage. The business case for Spanish resources is significant, but where does a credit union begin to translate materials?

During my time at Elevations Credit Union, a $3B asset size credit union in Colorado, I began the translation process by auditing all the forms and materials we could translate. I didn’t realize what an undertaking this was until I got started! The questions started rolling in: How do we prioritize, track and manage the files we translate? How do we create processes for translating, reviewing and auditing files on a yearly basis? What kept the process from being overwhelming was remembering that the goal was not how fast we could translate materials, but how effective and efficient we could be while doing so.

Here are five steps to consider when starting your translation journey.

Gain buy-in from credit union leaders: You have the data, you know the competitors in your area, now you need support. A translation strategy will need resources and a budget.
Hire a translations vendor (Yes – even if you have bilingual employees): A professional translator will ensure your translations are accurate and relevant. And no, Google Translate does not count.
Hold a meeting with your compliance team: Compliance teams will provide the project champion with guidance in prioritizing compliant forms, letters and notices.
Create an internal bilingual team to review the translations: While most translation vendors review translations, you will want to make sure that an internal staff member (or two) reviews the translations for accuracy. Who do you want to find an error, an employee or a member?
Prioritize your materials and EXECUTE: You can use Tier I, II, and III or from Easy, Intermediate, to Hard. Which materials can you translate immediately? Which materials will take you the most time to translate? What can you translate in-house and what needs to be sent to a vendor?

The most common barrier we see from our clients is internal bilingual capabilities. Our advice? Don’t let this be the reason you don’t start! While increasing the number of bilingual staff members should likely be a top priority for your credit union, you shouldn’t let a lack of bilingual staff derail your growth initiatives. Chances are that you have already attracted Spanish-speaking members and they will continue to bank with you, so why not improve their member experience? There are both temporary and permanent solutions that can solve your limited bilingual capabilities. Consider hiring an over-the-phone interpreting service, so credit union staff can serve non-English speaking members. Another solution is expanding availability of your bilingual personnel within the organization, this could be done by building an internal bilingual directory, creating an email group (example: español@abccu.com), or a hunt group number that distributes calls to bilingual staff members’ direct lines.

Here are some of the “low hanging fruit” we recommend our clients translate at the beginning of their translation journey:

Branch notices (Holiday closures, early closures, etc.)
Fee schedules
Product flyers
Ways to identify bilingual staff members (business cards or name tags)

Translating these materials will guarantee to improve member experience, while creating a welcoming and inclusive atmosphere. “Hispanohablantes” will appreciate any effort grande or pequeño. Taking on projects addressing multicultural growth strategies can be overwhelming, but if done correctly, these initiatives deliver impactful benefits to both credit unions and the members they serve. Don’t be afraid to seek out the necessary resources, tools or partners, like Coopera Consulting, to help make the transition seamless and impactful for all involved. Credit union members come from many different backgrounds, cultures and languages, and a “one size” approach does not always include all. The opportunity to expand your products and services through the power of translation is one we hope you take advantage of.

Expanding your reach through the power of translation

Diversity Insight: Opportunities To Serve A Diverse Field Of Membership

As first seen on CUmanagement.com on August 4, 2023. Authored by Jennifer Esperanza, Coopera Senior of Organization Culture and Strategy.

How well do you know the multicultural spaces in your community?

Last year, I struck up a conversation with a driver from Iraq, who came to this country over 15 years ago with his wife and two sons. He was a businessman back home, but when he settled in the Pacific Northwest, he needed work right away. The local food packaging plant was a place where many new immigrants and refugees were employed, where individuals from Afghanistan, Burma, Guatemala, Rwanda and other countries could immediately find work.

After complaining about this situation at work one day, one of his co-workers, a refugee from Sudan, explained that joining a credit union was a better option. He directed his Iraqi colleague to a local credit union that didn’t charge as high of monthly fees and provided great customer service. My Uber driver then shared how he immediately took his Sudanese co-worker’s advice, and his entire family has been loyal credit union members ever since.

What Does It Mean to Have a Multicultural Strategy?

My Uber driver, an Iraqi who dreamed about saving up for his kids’ college education, learned about credit unions through his Sudanese co-worker. In many communities across the country, there are neighborhoods, places of worship, school districts, factories and other places of employment in which multicultural populations share advice and recommendations with one another, despite their linguistic and cultural differences.

You can start by partnering with trusted community organizations that serve these demographics, or by reaching out to the human resource departments of employers that hire diverse workers. Coopera Consulting provides data analytics on areas that can identify the diverse demographics that reside within a given field of membership. These steps can lead to both multicultural member growth and improved financial well-being for all.

Diversity Insight: Opportunities To Serve A Diverse Field Of Membership

The Need to Not Just Create, but Also Communicate Your Credit Union’s DEI Strategy

As first seen on CUInsight.com on June 1, 2023. Authored by Jennifer Esperanza, Coopera Senior of Organization Culture and Strategy, and Jessica Maldonado, PolicyWorks Vice President of Public Affairs

Similar to a tree falling in a forest with no one around, is a Diversity, Equity and Inclusion (DEI) strategy fully effective if it’s not communicated? What happens if a credit union has invested a considerable amount of labor, time, and other resources towards DEI, but is still accused of “not doing enough?”

While credit union leaders may be doing the right things to increase DEI initiatives, not communicating their efforts to both internal and external stakeholders leaves them vulnerable to criticism. Whether it is being accused of a lack of transparency or at worst, perceived as uninterested in issues of belonging, diversity, equity, and inclusion, organizations such as credit unions run the risk of possessing a DEI strategy that falls on deaf ears.

Ideally, a comprehensive communications plan is implemented from the very beginning, and articulates the credit union’s commitment to DEI, demonstrates leadership’s support around it, and regularly updates its stakeholders with a variety of data, policy changes, and stories of its progress. Frequent and consistent communication, to employees, leaders, to members, and the community at large, pave the way to building trust and demonstrating that the credit union is sincere in its DEI efforts.

Credit unions may not be prepared to respond to criticism from members or even employees without a transparent DEI communications plan. Challenges such as lack of employee diversity, poor retention, or disgruntled members can leave the credit union susceptible to bad publicity if there is not a communication strategy in place to complement the DEI strategy. This is where partnerships with external entities such as consultants and community organizations can help.

Credit unions need to communicate their DEI plan and tell their story. This is critically important for internal stakeholders like employees and board members, not just the public.

Credit unions live the “people helping people” philosophy every day, and telling that story through a DEI frame is important. The proactive communication of a credit union’s DEI strategy can be done through social media, newsletters, and even media outreach for unique initiatives. It is also crucial to have a crisis communication plan in place in case challenges arise that require a public-facing response.

A DEI communication strategy can bring numerous benefits for a credit union, including:

Internal employee retention: staying in constant contact with employees about DEI strategy and direction can help staff feel involved and seen.
External benefits: Public stakeholders (members, community leaders, media, etc.) see what the credit union is doing, which helps promote brand loyalty and attract/retain members.
Enhancing a “people helping people” culture: Members and staff alike will feel like they are living this value.
Bridge junior and senior staff around DEI initiatives: Junior-level staff at the credit union are often eager to make a difference, including a want to do more with DEI initiatives. Senior staff may feel overwhelmed and that things move too fast, so an internal communication strategy can help create a protocol for decisions and bridge the gap.

Transparency of your credit union’s DEI efforts is a critical component of the DEI strategy. Being intentional in your communication will help to ensure your credit union is genuinely moving the needle in its DEI efforts. It’s never too soon to get started, and we’re ready and able to help.

The Need to Not Just Create, but Also Communicate Your Credit Union’s DEI Strategy

Boost Your Credit Unions Competitive Advantage

Boost Your Credit Union's Competitive Advantage by Engaging with Multicultural Audiences

As first seen on CUInsight.com on April 21, 2023. Authored by Víctor Miguel Corro, Coopera CEO

According to the United States Census Bureau, the estimated year when the U.S. will become a minority-majority country is 2045. This means that, by 2045, there will be no racial or ethnic group that makes up a majority of the population. Instead, no single group will make up more than 50% of the total population, with non-Hispanic whites becoming one of several minority groups. However, it’s worth noting that the exact year may be subject to change, though it is now an irreversible trend.

There’s never been a better time for credit unions to start (or grow) multicultural communities’ engagement as a differentiation strategy. Lending deeper to these market segments is one key way to do just that. Financial institutions that don’t consider efforts to expand multicultural business strategies will find it increasingly difficult to grow their customer base, deposits and loan balances in years to come.

As you begin your 2024 strategic planning discussions, consider how your credit union could make serving the Hispanic market and other multicultural markets a differentiation strategy. Below are four ways to start.

1. Understand your current membership and market using segmentation and analytics.

The first step in reaching underserved segments in your community with dignified financial services is understanding who they are and what they need. Segment your existing membership and market to determine how many are Hispanic or Asians, for example, and identify their language preferences. Use this segmentation to set a baseline for your Hispanic or Asian membership growth strategy. Develop new segment-specific marketing and product strategies for each specific market segment and continue to measure progress by monitoring membership growth.

2. Determine the product gaps that exist and identify where you can deepen relationships.

After you understand your current multicultural membership and market, you will want to identify opportunities to improve the member experience, including your lending program.

For example, if you notice Hispanics are not obtaining mortgages at the same rate as non-Hispanics, look at ways to bridge the gaps and address the root causes. For example, consider helping boost loan acceptance rates by providing more first-time homebuyer education or encouraging more collaboration with culturally relevant providers across the homebuying experience. Also, consider how you might adapt personal loans to meet the needs of consumers, such as providing loans to help pay for immigration expenses or emergencies with family members living in Latin America.

3. Explore alternative credit scoring models.

Many credit products accessible to underserved consumers feature one-size-fits-all rates and fees, which means they aren’t priced according to risk. Just because a consumer is un-scoreable by most traditional credit scoring models doesn’t mean he or she won’t be able to pay back a loan or does not have a payment history. Several alternative models available today can help a lender better evaluate a consumer’s ability to repay. Alternative sources of consumer data, such as utility records, cell phone payments, medical payments, insurance payments, remittance receipts, direct deposit histories and more, can be used to build better risk models.

Armed with this information – and with the proper programs in place to ensure compliance with regulatory requirements and privacy laws – credit unions can continue making responsible lending decisions and grow their portfolio while better serving the underserved.

4. Revamp, rethink or start your current communication with multicultural audiences.

Engaging with multicultural audiences requires an approach that is culturally sensitive, respectful and inclusive. Here are some good practices to consider when developing a communication strategy for multicultural audiences:

Understand the cultural nuances: Before developing a communication strategy, it is essential to understand the cultural nuances of the target audience. This includes their values, beliefs, customs and traditions. This knowledge can help you tailor your messages and avoid any communication missteps.

Use inclusive language: Use language that is inclusive and avoids stereotypes or assumptions. For example, avoid using language that assumes everyone celebrates the same holidays or speaks the same language.

Use visuals and graphics: Visuals and graphics can help convey your message in a way that transcends language barriers. Use images that are culturally relevant and inclusive.

Use multiple channels: Use multiple channels to reach your target audience, including social media, email, text messaging and traditional media. This approach can help you reach a broader audience and tailor your messages to each channel.

Multicultural audiences represent a significant and growing consumer base. In the United States, multicultural audiences currently make up 40% of the population, and this number is expected to increase in the coming years. Brands that can effectively engage with these audiences have a competitive advantage in the marketplace. Engaging with multicultural audiences is not only good for business, but it is also the right thing to do. Brands that demonstrate a commitment to diversity, equity and inclusion can build a positive reputation and improve their social impact. It is a matter of relevance.

Serving Multicultural Members

Serving Multicultural Members by "Reading the Room"

As first seen on CUInsight.com on March 8, 2023. Authored by Jennifer Esperanza, Coopera Senior Director of Organizational Culture and Strategy

Like many children of immigrants, my parents held down long hours at work and often juggled multiple income streams. This left me to be raised by my grandmother, an undocumented immigrant with no formal education. She could neither read nor write and did not speak English. For as long as I remember, I served as grandma’s translator for trips to the convenience store, to the bank, doctor’s appointments, and interactions with salespeople who asked to speak “to the adult in the household.”

Anyone who has ever served as a translator knows that it’s more than just translating words from one language to another. It’s also about translating cultural concepts that people in the mainstream may take for granted. Translators must often “read the room” and know their audience. This means being attuned to the subtle cultural cues that everyone will respond positively to, while adjusting communication style, reactions, and behaviors accordingly. In my case, I became attuned to evaluating whether an interaction required small talk before getting down to business, and making note of how prior interactions went, in order to be better prepared for next time.

For staff working behind the counters and tasked to serve diverse communities, what sorts of trainings do they get (if any) on how to read the room? While front-line staff members may get briefed on the essential behaviors of customer service, how often are they trained to adapt to the needs of those they’re assisting? As an adult, I still notice the burdens left on non-English speaking customers, those with disabilities, or people from low-income backgrounds, as they’re expected to accommodate to the norms of the situation— rather than finding themselves in a place where the staff have to accommodate to them, or at least meet them halfway.

The resistance to entertain someone else’s perspective and to center your own biases is what social scientists would call ethnocentrism. Ethnocentrism is the concept of evaluating another culture through our own standards and preconceptions based on the norms we’re most frequently exposed to in our own life experiences. To take an ethnocentric stance is to insist “my way is the right way.” It’s when we might judge apples for not being juicy enough, but that’s because we’ve been eating oranges for most of our life.

In its extreme form, ethnocentrism leads to discrimination and bars people from opportunities to improve their lives. Specifically in the case of our industry, ethnocentrism bars people from the opportunity to gain true financial empowerment. For example, we tend to have an ethnocentric view that large purchases should be done by credit card, and that cash (or even check purchases) are suspect. In my grandma’s case, paying for things in cash was preferred because she came from an economically unstable country where most financial transactions were done in cash (no matter how large or small). Moreover, writing checks was impossible for someone like her; she could barely write her own signature. But this presented many challenges when she arrived in the US; making a large cash withdrawal from the bank at any one time was seen with suspicion.

Last year, Ryan Coogler, director of the film “Black Panther” was detained after trying to withdraw a large amount of cash from an Atlanta bank. This request prompted the bank teller to alert the manager of a possible bank robbery taking place, when in fact, Mr. Coogler (who is African American) was using cash from his own account to pay a medical assistant employed by his family. He was soon released from detainment without any charges.

In the financial services industry, there are many stories of bias and discrimination experienced by members from historically-underbanked and underserved groups. Because of his celebrity profile, Mr. Coogler’s story made headlines. But how many more incidences like his happen on a daily basis? What are the seemingly innocent, unconscious ways that we perpetuate ethnocentrism at the credit union without realizing it? How does ethnocentrism compromise a credit union’s ability to become a trusted financial ally?

When it comes to improving customer service for diverse communities, start by critically analyzing internal practices and processes that we might have assumed are neutral. What are our assumptions around how transactions should be conducted, and how are historically underbanked groups challenging us to think differently? Below are a few ways to begin critically self-assessing your credit union’s practices, so that your credit union can begin “reading the room” and adjusting to the circumstances accordingly:

Do you have an awareness of the diverse demographics of your community, and some of their culturally-specific relationships to finances? Who are the trusted leaders of these communities that you can refer to if you’d like to learn more?

Does your credit union have enough signage with clearly laid-out information and infographics for members with social anxiety, dyslexia, or those who have yet to gain fluency in English?

What documents are most frequently used by your members who don’t speak English fluently? Are they translated and updated regularly?

Do photos in your marketing materials include diverse people (ethnicity, disability, genders, ages, body size) and diverse family structures (same sex couples, single parents, multi-generational households)?

Has your staff been trained to unlearn biases that may exist when members make deposits or withdrawals for large amounts of cash?

What options are available to provide services for members who work non-traditional hours? Do you have methods to reach out to members who are seasonal laborers and may not have the same address for more than a few months at a time?

Tackling everyday ethnocentrism begins with being reflective of our own practices and finding ways to include a wider range of perspectives and ways of doing things. Many organizations tend to be reactionary after incidents of unconscious bias have been reported— which by then, means it’s too late. We encourage a proactive approach towards being more reflective, learning what biases may exist in our organizations, and implementing organizational change that encourages staff, leaders, and board members to learn how to “read the room”—or more accurately, how to “read the community.”

The Rope are Old

The Ropes are Old - Ways We Can Learn From, Support, and Retain the Next Generation of Credit Union Young Professionals

As first seen on CUInsight.com on November 28, 2022.

Who is Generation-Z?

The next generation of credit union young professionals (YP’s) are here, ready to make waves and revolutionize the credit union industry. Born between the late 1990’s and early 2010’s, Generation- Z grew up during an incredibly transformative time; the digital world was taking off, the heavy short- and long-term financial impacts of 2008’s great recession were felt in many homes, and the shadows of global terrorism and war were continued topics of conversation. Generation-Z also serves to be the most racially and ethnically diverse generational group yet to be seen in history. According to Pew Research Center, one-in-four Gen Zers are Hispanic, 14% are black, 6% are Asian and 5% are two or more races. They have directly observed, experienced and discussed the effects of geopolitical disruption, environmental crises and economic turmoil at a very young age. As this generation became young adults, society began to recognize the level of impact these experiences held, and how they would play a pivotal role in shaping the values, insights and intrinsic drivers of Gen-Zers personal and professional life. Forbes has written that Gen-Z will supplement 27% of the workforce in OECD countries and make up one-third of the world’s population by 2025. As many joined the workforce in recent years, corporate ideals of Gen-Z young professionals began to emerge.

Insights. Ideas, and Skills of Gen-Z YP’s

Gen-Z greatly values mission-driven work. They want to make sure their time is spent making a true difference that is fulfilling the needs of the current moment whilst striving to create a sustainable future. Their strength lies within their ability to be vocal, stand up to injustices and take charge. A recent poll conducted by Deloitte and The Network of Executive Women (NEW) noted that 77 percent of Gen-Z respondents say it’s important when their organizations’ values align with their own. They are more inclined to support an organization whose mission is rooted in a definite roadmap, met with intentional goals, and will take the necessary steps in order to create sustainable change. Essentially, they expect corporations not only to talk the talk but walk the walk, and to be honest about their critiques and improvements along the way. Gen-Z finds DEI an expectation at their workplace, as it has been a part of their lived experience and education from younger years. They have witnessed and felt the impacts of stagnant political and social action and would rather be the key player in leading change to achieve diversity, equity and inclusion for all – using empathy as their instinctive tool.

Generation-Z, also quite recently known as Zoomers, largely joined the workforce at the start of a global pandemic. COVID-19 turned the workplace on its head, as many employees were left to dictate their workday within the confines of their homes. Many asked themselves, how does one pivot a work style that largely relies on in-person communication to mostly digital? Well – look no further than to your young professional digital natives. Gen-Z has never known life without the creation of the internet and digital media. Gen-Z was the first generation to interact with the many stages of technology as it developed right in front of their eyes – making them the most digitally savvy generation to date. They understand that reaching people through digital platforms isn’t the fallback, but an essential tool to interact with a global audience. This revealed the importance behind genuine digital storytelling – an idea seen to be relatively new, yet something this generation has been participating in their whole lives. Gen-Z’s are the cultivators, seekers and perpetuators of current and relevant digital trends. They curate digital campaigns that bring the globe to you, creating a space to authentically listen, learn and foster change, right at your fingertips. The emergence of YP’s in the workplace amongst a global pandemic unveiled not only how an industry can leverage Gen-Z YP’s on digital platforms, but also just how far creative thinking can take you.

According to a study done by Vision Critical, 80 percent of Gen-Z believe that finding themselves creatively is important. This should come as no surprise, based upon many influential events during their younger years, Gen-Z sought to think outside the confines of what society was offering to foster spaces for change. They are cultural creators, with an innovative toolbox that blends the physical and digital worlds into one. They observed previous generations sacrifice their work-life balance, values and sometimes passions for a corporate job. While the job landscape for many industries recently widened as remote work increased, YP’s capitalized on the recent widening of job landscapes to seek out positions that will uphold their values and passions without feeling compromised. They strive to incorporate their creative skills into spaces that make them feel energized, passionate and a part of the solution. This group takes chances and seizes the moment instead of waiting their turn, and they expect corporations to support and lead them in ways where they can creatively succeed.

How are we leading and learning from Gen-Z YP’s?

In order to speak to a new generation of young professionals, leadership styles need to morph in order to account for strengths, skillsets and passions they bring to an industry. We’ve acknowledged that Gen-Z folks are generally autonomous, digitally savvy and are creative thinkers. Leaders that not only permit, but endorse opportunities for YP-led projects and the personalization of their career journey allow for Gen-Zs to work on developing their skills in interdisciplinary ways. Gen-Zs are also the perfect spokespeople to address the generation that is currently lacking within the credit union space. A 2022 CU Times report shows that a mere 34 percent of Gen-Z interacts with a major national bank or credit union, and only 16 percent with a regional or community bank or credit union. Credit union leaders can leverage YP voices, many of which can relate to Gen-Z members’ financial journeys and showcase how credit unions are helping young people meet their financial goals. Look no further than to social media, where Gen-Zs can utilize their digital skillsets and drive Gen-Z traffic to credit union social media profiles. These young professionals are looking for more than empowerment and words of encouragement – they are asking organizations to dig deeper. Essentially, Gen-Z is looking for their leaders to become pushy for YP’s to become visible. Introduce them to spaces where one does not typically see a young person. Intentionally refer them to educational opportunities that speak to their creative and professional goals. Lead them to platforms where their voices are heard amongst c-suite and executive levels. This generation is not asking their leaders for a seat at the table, but a reconstruction of the table itself. In return, Gen-Zs are fueled with the educational and industry knowledge that will ignite retention and lay the foundation for future generations of credit union leaders.

There are four active generations in the workforce at the same time, something humans have never experienced before in contemporary history. We’ve learned about what Gen-Zs are seeking in their professional journey, but how do they interact with the three additional generations, and where does empathy play its role? Inter-generational empathy is curated through care, companionship, and connectedness for and to different generations. To build this form of empathy within the workplace, generations need to find the commonalities between one another, and see value in spaces that differ. Specifically, in regards to credit union space, it’s important for all generations to learn about their role in curating this global credit union system, which in return, breeds a sense of belonging. Belonging is a feeling where one feels secure and supported, where all members are working towards a common goal. When belonging is felt, empathy is bred. If this can occur though an inter-generational lens, retention and passions are at an all-time high. As members of the credit union industry, every represented generation is held accountable in making sure our belonging principal, “People Helping People”, means ALL people, regardless of their race, ethnicity, sexual orientation and generation.

“The ropes are old!”

There is a common old saying said many times within the workplace – “you have to learn the ropes”, meaning, each young professional is required to listen, learn and progress in their career in similar fashions done before. After all we’ve discussed, Gen-Zs are ready to say, “The ropes are old!”. These ropes aren’t as sturdy nor dependable as they first were. They have not been updated in a while and are in desperate need of repair. The workplace shift is taking place, the Gen-Z young professional population is only increasing, and the credit union industry needs to pay attention. Generation-Z is eager to restore these ropes, adding string, tying off loose ends, and making sure they lead to deep inclusion and sustainable change.

"Talk Story" - The Power of Storytelling for Organizational Change

As first seen on CUInsight.com. Authored by Jennifer Esperanza, Ph.D., Coopera Senior Director of Organizational Culture and Strategy.

We love to tell stories, and this has always been a part of our history as humans. We’ve been sitting around campfires and telling stories for much longer than we’ve been putting pen to paper and writing them down. There is a desire to bring back this oral tradition: just look at open-mic nights at cafes or the proliferation of podcasts and radio shows such as The Moth, This American Life, or StoryCorps, which is funded by the Library of Congress. Even social media has made room for people to share their stories: Humans of New York, for example, has millions of followers across Instagram and Facebook and is a platform for everyday people to read about the life stories of ordinary people such as themselves.

When we tell stories, not only do we entertain one another, but we also share wisdom and provide guidance to our listeners on how to make sense of the world. Stories (both fictional and real) build empathy: learning about others’ experiences and relating their emotions with our own. In fact, a common phrase used in Hawaiian culture is to “talk story,” in which people are encouraged to slow down, take the time to share stories with one another in order to strengthen bonds within the community.

When I consult with credit unions across the country, I see a hunger within our own industry to “talk story.” Staff members are eager to show me the historical photos that adorn their walls and share the story of how the organization began as an SEG (select employee group). There are countless times when I’ve heard VPs tell their stories of how they began their career as a teller, but someone in leadership noticed their potential and encouraged them to acquire new skills. And most often, credit unions love to talk stories of the lives they’ve changed after helping members improve their financial well-being.

For the credit union industry, storytelling has the power to not only share wisdom and build empathy, but also to inspire organizational change. Whether it’s about adopting a new brand strategy, requiring more DEI learning and development opportunities for staff, or plans to merge with another credit union, there is power in speaking aloud the narrative as to what that change means for members, for your credit union staff, or for the community at large.

In their book Switch: How to Change When Change is Hard, authors Dan and Chip Heath write that one of the top mistakes leaders make when trying to enact organizational change is the over-reliance on the business case and on numeric data points. Of course, numbers are important, but the Heaths (who are both researchers on organizational behavior) found that employees are still more likely to support new processes and ideas if they experience an emotional response that opens them up to those changes. And this is often accomplished by hearing stories. It’s not enough to just present data to your organization and expect that it will speak for itself. When leaders tell a story to supplement or illustrate the data, staff have more empathy for the rationale behind change, and are more willing to support it.

Thinking outside the walls of the credit union’s internal communications, our industry is also presented the opportunity to make an impact on the communities we serve through collective narratives, or corporate narratives. As we craft and share our credit union story, we need to be sure to do so with careful consideration to remain consistent and authentic to accurately reflect our brand promises of today and the brand we strive to be in the future. How inclusive are these corporate narratives? Are they focusing on the commitment to meet and exceed the needs of people of diverse backgrounds?

Consider reinforcing your corporate narrative by capturing and sharing member testimonials showcasing ways your credit union is carrying out its brand promise at the member or community level. Highlighting first-hand experiences about the impact your credit union is making through everyday member interactions, access to life-changing financial services or community engagement strengthens your brand promise and creates an opportunity for a deeper emotional connection to existing or future members.

So the next time your organization revises its mission statement, takes on any type of shift in organizational culture or is ready to reinforce a brand commitment to the diverse communities you serve, set your credit union up for success by first asking this crucial question, “What’s our story?”

Talk Story

The New American Homebuyer - Who are they and how your credit union can help

As first seen on CUInsight.com on May 20, 2022.

Through the decades, it is no secret that the fastest and most reliable way to build wealth in the United States is through homeownership. However, this American dream of walking into an open house and saying “Yes, we’ll take it” has now turned into a Hail Mary pass in the last quarter, seeking any opportunity to score. In 2015, we saw a new market player, Latinos, hit an all-time high by accounting for 68 percent of new homeowners that year, according to the National Association of Realtors. This helped sustain the upward trend of overall Latino homeownership rate that increased to 48.4 percent in 2021 from 47.1 percent in 2019 (US Census Bureau). Many Latinos, like me, felt a sense of hope – this American dream is reachable after all.

Unfortunately, like the old saying goes, “The only thing that remains constant is change.” By 2021, the housing market had significantly changed. My latest read, the NAHREP 2021 State of Hispanic Ownership report, an extensive report of Latino homebuyer trends utilizing US Census, HMDA, Freddie Mac, and realtor data among others, shed light on the new challenges first-time Latino homebuyers face. In 2021, the rate of new Latino homeowners had declined to 18.1 percent compared to 54.4 percent of their non-Hispanic white counterparts, a 30-point decrease from 2015. Many of the barriers first-time Latino homeowners faced attributed to the increase in home appreciation and affordability challenges. Many Latino-dense markets experienced homes appreciating up to 31 percent year-over-year, which include states like Arizona and Florida. While the minimum salary necessary to afford the median-priced home nationally is $69,000, the median Latino household income is only $55,000.

Where is the silver-lining to these challenges? According to a 2021 study by Freddie Mac, 49 percent of Latino adults aged 45 and under were “Near mortgage ready” or “Mortgage ready”. A list produced in conjunction with Freddie Mac ranked all metros by the number of mortgage ready Latinos and compared the percentage of those who can afford the median priced home to the amount of housing stock available. In addition, not only are Latinos ready for homeownership, but they are in prime age with nearly two in three Latinos being 40 years or younger (U.S Census). How are credit unions equipping first-time Latino homebuyers? Well, we have some ground to cover. According to HMDA 2020 data, credit unions account for only five percent of mortgage loan originations to Latinos.

In my previous role at a Colorado-based credit union, we uncovered that although some Latino consumers qualify for a mortgage loan, there are other components to the homeownership process that they may not be aware of. With the assistance of a bilingual mortgage loan originator, we facilitated Spanish first-time homebuyers’ seminars. To accommodate our Latino community who often worked during typical credit union branch hours, we held informational seminars the first Saturday of each month. We catered breakfast, and in some instances had gift-card drawings. We educated our members and non-members on the basics of purchasing a home, down-payment and mortgage loan options, benefits of working with a real estate agent and what to expect at closing. This resulted in mortgage and credit card referrals, along with the increase in brand awareness and trust within the Spanish-speaking community.

Credit unions have a tremendous opportunity to attract and educate these home-ready consumers. Here are three recommendations credit unions can implement to be the preferred lender for the New American Homebuyer:

FINANCIAL EDUCATION IS KEY. BONUS POINTS IF IT’S IN SPANISH – For many first and second generation Latinos, like myself, we are learning and navigating the financial services sector all on our own. Offering seminars on building credit and being a first-time homebuyer can offer a safe space to ask questions while learning from trusted market experts. The benefits can be an increase of new memberships, loan applications and word-of-mouth referrals.

HIRING, RETAINING AND DEVELOPING BILINGUAL STAFF – Ensuring first-time homebuyers understand the process from start to finish is vital to a successful home purchase and it is imperative this is communicated in their preferred language. How are you attracting diverse and bilingual talent experienced in mortgages? Are you prioritizing Spanish-language as a preferred or required skill? Developing internal employees and creating career paths into mortgage roles can be an alternative route. Tapping into your own bilingual staff, you may uncover they have been translating for the mortgage officer already.

PARTNERING WITH BILINGUAL AND/OR BICULTURAL REAL ESTATE AGENTS – NAHREP, which stands for National Association of Hispanic Real Estate Professionals, can be a great way to partner with bilingual and/or bicultural real estate agents. To ensure your members know the role real estate agents play in finding their forever home, encourage your members to work with a real estate agent. In this hot market, you need an expert to find what you are looking for, negotiate prices, and navigate the competition in a stressless way all while communicating in their preferred language and connecting on a personal level.

Removing barriers and getting better acquainted with the new American Homebuyer as they navigate the challenging home-buying process will reinforce your credit union’s promise to serve. By creating a quality experience throughout this important life milestone, it may just land your credit union its newest loyal member.

The New America Homebuyer

Building Your Language Strategy Webinar

All credit union members and those seeking financial services deserve the ability to communicate with their financial institutions. Easy, right? In reality, many members or prospective members who don't speak English as a first language (or at all) can encounter barriers when trying to access the most basic financial services.

In this webinar, Founder of Language Ventures, Luiz A. Valdez-Jimenez, Esq., MBA has joined Coopera CEO Víctor Miguel Corro to discuss how credit unions can serve linguistically diverse members, and why credit unions should view language as a competitive advantage in serving increasingly diverse communities.

Building Your Language Strategy Webinar

Multicultural USA - An Emerging Marketing Focus

As first seen on CUInsight.com. Authored by Coopera CEO Víctor Miguel Corro.

Multicultural marketing or ethnic marketing involves creating brand awareness to one or more audiences of a given ethnicity—usually an ethnicity outside of a country’s majority culture. Life experiences and background influence how they engage with content, consume products, and buy services. For this reason, brands must consider traditions, languages, customs, beliefs, and experiences when crafting messages. Multicultural marketing focuses on understanding these influences so that outreach and engagement result in an authentic and culturally appropriate mix.

The United States of America, due to its massive size and mixed ethnic heritage, has one of the most complex cultural identities in the world. Millions of immigrants from all over the globe have settled in America, which expands over a vast land mass. The mingling of cultural backgrounds and ethnicities led to a nuanced and complex sense of individual identity. More than 40% of America’s population is identified as multicultural, which basically means non-Hispanic White. This is a fact that credit unions must recognize and understand deeply so that they are relevant to the increasingly diverse population in the country.

Before credit unions begin to build strategy or marketing programs to enhance service to multicultural markets, their first step should be self-reflection. Credit unions may start by assessing the number of multicultural members they have and compare it to their defined field of membership (FOM). Knowing how many African Americans, Asians, Native Americans, Latinos, and other populations they have is essential to craft an outreach strategy to multicultural members. For existing membership, it’s also important to know language preference, the engagement with loans and savings products as well as account balances. Measuring multicultural membership also informs whether the credit union reflects the ethnicities in their FOM and in terms of ethnicity of board, management, and staff.

Knowing these data points and having a strategy to truly address the needs of distinct consumer segments will send a message that your credit union “gets it.” African American consumers may be delighted to learn that their credit union is actively looking to build a branch in a financial dessert, the young Latino immigrant might be interested in the new Spanish-language app while the Asian Americans could want to know of the investment services.

Leveraging this knowledge and having the credit union maxim of financial inclusion and financial well-being for all present is the essence to an inclusive approach to a multicultural membership base.

Multicultural USA - An Emergin Marketing Focus

Illinois Credit Union League and Coopera Partner

Illinois Credit Union League and Coopera Partner on Focus Group Study

The Illinois Credit Union League and Coopera partnership to advance financial inclusion will enter a new phase in 2022. The organizations will work together on identifying and bridging gaps, enabling Illinois Credit Unions to offer financial products and services to benefit underrepresented consumers across the state. In 2019, the partnership produced a demographic research study focused on the growing diversity of Illinois, helping Illinois credit unions identify areas of opportunity to advance financial inclusion.

State Credit Union Leagues and Associations are uniquely positioned to lead change and advocate for deep financial inclusion for all. “The focus group study builds on the valuable research we’ve already gathered, delving deeper for even greater insights that will support the financial inclusion efforts of Illinois credit unions,” says Tom Kane, President/CEO of the Illinois Credit Union League. “This partnership with Coopera shows our credit unions where they can make a difference, how they can better serve their members and help them meet requirements of the new Illinois Community Reinvestment Act (CRA).”

Beginning in Q2 of 2022, Coopera will host three focus groups of Illinois residents across the state. Illinois credit unions will select among their potential and existing members. Participants will discuss their engagement, awareness and financial pain points. The research will be used to assist Illinois credit unions to find outreach gaps from a cultural perspective. Data collected could be used to collaborate on new culturally appropriate products and services, as well as find innovative ways to serve existing and new members.

“Hearing directly from the community is fundamental in driving financial inclusion work,” says Coopera CEO Víctor Miguel Corro. “We’re excited to get started on this meaningful project and to help Illinois credit unions outline their plans for more inclusive service to their members and underrepresented communities.”

The focus group project is anticipated to be completed by year end.

Building Your Language Strategy Webinar

All credit union members and those seeking financial services deserve the ability to communicate with their financial institutions. Easy, right? In reality, many members or prospective members who don't speak English as a first language (or at all) can encounter barriers when trying to access the most basic financial services.

In this webinar, Founder of Language Ventures, Luiz A. Valdez-Jimenez, Esq., MBA has joined Coopera CEO Víctor Miguel Corro to discuss how credit unions can serve linguistically diverse members, and why credit unions should view language as a competitive advantage in serving increasingly diverse communities.

Building Your Language Strategy Webinar

Going global to serve the local: How ready is your credit union?

As first seen on CUInsight.com. Authored by Jennifer Esperanza, Ph.D., Coopera Senior Director of Organizational Culture and Strategy.

We live in an increasingly interconnected world, where credit unions encounter diverse scenarios that highlight the need for global financial solutions.

Imagine the following happening within your community:

An international student from Singapore has just arrived in the United States to start her first year at her university. She has a cashier’s check for thousands of dollars to pay for her tuition bill but isn’t sure where or how to deposit it.

A London-based researcher who spends six to nine months each year working from the U.S. headquarters of her multinational company deposits her monthly salary into a U.S. bank account. She would rather use a credit union, but is unsure if she can access her account when she is back in the U.K.

A Guatemalan immigrant-turned-citizen is employed at a local dairy farm and regularly wire-transfers money to Guatemala to support his aging parents. His American-born children insist that the transaction fee to send these remittances is too exorbitant. He’s a member of your credit union and is looking for a more affordable remittance alternative.

A priest from France, assigned to oversee a parish in the U.S. for the next ten years, needs to purchase a car to get to work, and locals have recommended your credit union for financing because of your competitive interest rates. While he does not have a Social Security number, he does have an International Taxpayer ID Number (ITIN), which has been accepted before for other paperwork.

These are just four examples of the unique needs of consumers who are:

From outside the U.S.
Maintain residences in other countries
Are engaging in financial transactions across international borders

While the scenarios above are seemingly rare, they are becoming more commonplace in a variety of urban, suburban and rural communities across the country.

According to the Migration Policy Institute, immigrants constituted 17 percent of the U.S. population, which was approximately 28.6 million people in 2022. The ubiquitous and accessible technologies of today make it easier for immigrants, multinational workers, and international students to maintain family ties, both socially and economically. Family group chats on WhatsApp, global remittance services (which are valued around $890 billion), and the option for many Americans to work abroad as digital nomads demonstrate how private and public infrastructures have embraced more globally-oriented lifestyles. It also signals how credit unions need to keep up to date with their own processes and products to support them.

Understanding and anticipating the needs of global consumers will continue to be important in the years to come if credit unions want to be relevant to younger and more diverse members. It requires understanding the diverse demographics within your field of membership, assessing your credit union’s readiness and capabilities, and training staff to anticipate and be ready to serve a broader base of members.

Understanding your diverse membership

It’s important for credit unions to know the segments of your community that have an international profile: immigrants, refugees, international students, and overseas contract workers, as mentioned above. In addition, there will be Americans who hold dual citizenship with another country who may need to make financial transactions across international borders.

If you are within a community with a high number of foreign workers, such as those in the technology, agriculture and food processing, and construction sectors, you will likely find that these workers and their families need to be able to send money back and forth internationally. University and small college towns should also be ready to sign on new members who need a trusted financial institution to make foreign currency exchanges and large deposits while they are a student in the area.

Credit union readiness assessment

In addition to getting to know your global members, reviewing your credit union's current capabilities is equally important. This can include an evaluation of:

The various forms of acceptable ID beyond social security numbers
A member’s ability to use their WhatsApp ID as their contact phone number
Technology infrastructure (i.e., core processor) and security measures
Remittance service or referral to a reasonably priced remittance provider
Multilingual and 24-hour support staff

Best practices for serving a global membership

While it may seem daunting to revise your operations for your global members, it’s easier if your credit union has been hiring diverse, bilingual, and bicultural staff—especially if they’ve been hired to work as tellers or MSRs. These employees may have already called attention to what you already do well and what roadblocks may still exist. Provide more formal opportunities for these staff members to share their insights and suggest best practices to implement in the years to come.

Best practices for serving global members also include leveraging technology:

Are your digital platforms secure enough to be accessed from overseas? Try offering mobile banking with international features, especially if you’re located in an area with a large concentration of overseas contract workers, for example Silicon Valley in California or Research Triangle Park in North Carolina, or a community that shows high activity in remittance payments to countries overseas (the top three countries to receive remittances in 2024 were India, Mexico and the Philippines).

New York-based United Nations Federal Credit Union (UNFCU) has been the leading financial cooperative for the UN community, since 1947, serving more than 240,000 members across 200 nations currently. “We respond to how global citizens bank and move money internationally,” said Janice Ong, vice president of Payments Experience at UNFCU.

UNFCU built a custom cross-border payment platform that remits over $2.5 billion annually. “Our secure financial solutions make transferring money easier for our members and their families so that they can stay connected to their financial lives—whether UN staff is based in one country and has family in another, who will need to access funds, or they need to transfer funds back home to make rent, mortgage, or children’s school tuition payments,” she said. “We give our members financial peace of mind while they work to build a better world.”

Innovation and inclusion: Serving a world of members

To remain relevant and competitive, financial institutions must embrace innovative practices and anticipate the needs of consumers with different lifestyles. Provide a call to action for your entire organization to learn more about your field of membership, assess your readiness, and leverage the insights that your diverse members and staff have to offer. By addressing the unique needs of global members, credit unions can strengthen their position as trusted financial partners for all.

Going global to serve the local: How ready is your credit union?

Illinois Credit Union League and Coopera Partner

Illinois Credit Union League and Coopera Partner on Focus Group Study

The Illinois Credit Union League and Coopera partnership to advance financial inclusion will enter a new phase in 2022. The organizations will work together on identifying and bridging gaps, enabling Illinois Credit Unions to offer financial products and services to benefit underrepresented consumers across the state. In 2019, the partnership produced a demographic research study focused on the growing diversity of Illinois, helping Illinois credit unions identify areas of opportunity to advance financial inclusion.

State Credit Union Leagues and Associations are uniquely positioned to lead change and advocate for deep financial inclusion for all. “The focus group study builds on the valuable research we’ve already gathered, delving deeper for even greater insights that will support the financial inclusion efforts of Illinois credit unions,” says Tom Kane, President/CEO of the Illinois Credit Union League. “This partnership with Coopera shows our credit unions where they can make a difference, how they can better serve their members and help them meet requirements of the new Illinois Community Reinvestment Act (CRA).”

Beginning in Q2 of 2022, Coopera will host three focus groups of Illinois residents across the state. Illinois credit unions will select among their potential and existing members. Participants will discuss their engagement, awareness and financial pain points. The research will be used to assist Illinois credit unions to find outreach gaps from a cultural perspective. Data collected could be used to collaborate on new culturally appropriate products and services, as well as find innovative ways to serve existing and new members.

“Hearing directly from the community is fundamental in driving financial inclusion work,” says Coopera CEO Víctor Miguel Corro. “We’re excited to get started on this meaningful project and to help Illinois credit unions outline their plans for more inclusive service to their members and underrepresented communities.”

The focus group project is anticipated to be completed by year end.

COOPERA COMMENTARY

Transforming Mindsets: Embracing DEI as the New Operating System for Credit Unions

Transforming Mindsets: Embracing DEI as the New Operating System for Credit Unions

Growing the Hispanic Market and Beyond: Opening and Speeding Up Pathways for Success

Deep Financial Inclusion Starts with Intersectionality

The Urgent Need for Credit Unions to Focus on Young, Multicultural Consumers

The Curb Cut Effect

Opportunities to Serve a Diverse Field of Membership

Empowering Women by Strengthening Financial Independence

Moving the Needle on DEI

Improve Financial Inclusion by Starting with your Organizational Culture

Leveraging Analytics and Market Research for Targeting Emerging Multicultural Consumers in Credit Unions

“Here’s the story”: What merging credit unions can learn from The Brady Bunch

The Strong Business Case For Pursuing DEI - And Now B

Credit Unions and the Digital Frontier: Strategies for Fostering Authentic Virtual Engagement

The Evolving Demographics Of The USA

Unveiling cultural nuances in reaching Latinos

The Latino Demographic Landscape

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Cultural Nuances: A Necessity, Not an Option

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Language as a Bridge

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Cultural Celebrations and Traditions

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Representation Matters

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Localizing Marketing Efforts

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Expanding Your Reach Through the Power of Translation

Diversity Insight: Opportunities To Serve A Diverse Field Of Membership

The Need to Not Just Create, but Also Communicate Your Credit Union’s DEI Strategy

Boost Your Credit Union's Competitive Advantage by Engaging with Multicultural Audiences

Serving Multicultural Members by "Reading the Room"

The Ropes are Old - Ways We Can Learn From, Support, and Retain the Next Generation of Credit Union Young Professionals

"Talk Story" - The Power of Storytelling for Organizational Change

The New American Homebuyer - Who are they and how your credit union can help

Building Your Language Strategy Webinar

Multicultural USA - An Emerging Marketing Focus

Illinois Credit Union League and Coopera Partner on Focus Group Study

Building Your Language Strategy Webinar

Going global to serve the local: How ready is your credit union?

Understanding your diverse membership

​

Credit union readiness assessment

​

Best practices for serving a global membership

​

Innovation and inclusion: Serving a world of members

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Illinois Credit Union League and Coopera Partner on Focus Group Study