Credit unions are taking bigger steps for diversity, equity and inclusion

August 31, 2022 9:41 AM

Credit unions are furthering efforts for diversity, equity and inclusion, continuing the industry-wide push for change.

Through initiatives such as the Credit Union Women's Leadership Alliance's Coaching program and a partnership between Raiz Federal Credit Union in El Paso, Texas, and CU Strategic Planning, institutions are addressing the disparity within executive ranks and other levels of management.

These three honorees from this year's list of the Best Credit Unions to Work For are key examples of how financial institutions are improving their recruiting practices so that their employees better reflect the racial and gender demographics of the communities they serve.

MSU Federal Credit Union

East Lansing, Michigan

Following the killing of George Floyd and the protests that came soon after, Michigan State University Federal Credit Union in East Lansing decided its plans for the formation of a DEI department couldn't wait any longer.

Amanda Denney, who had worked at the $6.8 billion-asset credit union for more than 14 years at that point, helped MSUFCU capitalize on feedback gathered during that time from the employee resource groups it developed two years prior.

"One of the things that we really discovered during those listening sessions … was how much our employees were being discriminated against by our members, or how many instances where our members were not treating our employees appropriately that were going unaddressed," said Denney, who was appointed as director of diversity, equity and inclusion for MSUFCU in October 2020. "Part of that was because some leaders didn't have the tools and resources to address those instances, and some of it was employees just weren't bringing those [offenses] forward."

MSUFCU has since instituted training workshops for anyone in a leadership role, equipping them to address instances of discrimination. In turn, credit union leaders identified the growing need for a department specializing in such efforts.

Denney has overseen the appointment of the credit union's first intern to a leadership role within its ERG or "affinity" groups, as well as the development of an annual company-wide report that provides updates on the credit union's progress towards various DEI-oriented benchmarks.

More recently, MSUFCU announced it was building the framework for a feature that would allow members to set a preferred name and set of pronouns across its digital banking and card offerings. The functionality is expected to go live this year, pending similar updates from its core provider and Visa.

These efforts have since been codified into the credit union's official policy.

"The reason we did this is because we don't want these efforts to go away at the whim of the CEO, so our board actually elected to write them into our policies to make sure that they couldn't go away, and only by a unanimous vote by the board can the department or these initiatives be dissolved," Denney said. "So that was literally one of the first things that I did when I took this position."

Credit unions of all sizes are working to address cultural representation.

"Having DEI efforts in place really does focus on the overall wellbeing of employees, and gone are the days where we can separate home life and work life … if things are happening in the world that impact your mental health, that's going to impact your mental health here at work," Denney said. "So we're being really conscious of that to make sure that we're supporting [potential and current] employees in that way."

Western Vista Credit Union

Cheyenne, Wyoming

Western Vista Credit Union in Cheyenne, Wyoming, fosters inclusivity by partnering with local organizations and municipalities.

"[Cheynne] is the biggest city in the state with a population of over 60,000 people, so when you're that small, that diversity just isn't there … so we're having those conversations about the importance of being an accepting community and making people feel welcome here," said Lorrell Walter, senior vice president of marketing and member experience for the $233 million-asset credit union. "This community is full of wonderful people and I want to make sure that's not lost — but we're not perfect, and we can always do better."

The nearby F.E. Warren Air Base, one of the oldest military bases still in use under the United States Air Force, is a source of diversity within the credit union's surrounding community, Walter said.

"The addition of the personnel from [the base] that live in our community is actually where a great deal of our diversity comes from," Walter said. "Here in our community, we've actually got some initiatives that we're working on to create awareness of the importance of DEI, and of being tolerant, inclusive and accepting."

One such group is the Wyoming Business Advocates. Founded in 2008 under the Greater Cheyenne Chamber of Commerce and originally named the Wyoming Wranglers, the initiative connects local businesses with the consultant John "J.R." Reskovac — a principal with the federal government relations firm Capitol Decisions in Washington D.C.

Reskovac lobbies the U.S. Congress for the interests of the Chamber and the community of Cheyenne on matters such as infrastructural improvements and funding for other public projects.

The credit union hosts the group's monthly meetings, with Walter and Steven Leafgreen, WVCU's chief executive, also serving as members of the WBA.

As the Air Force's Nuclear Weapons Center begins updating the Intercontinental Ballistic Missile system by replacing the maturing Minutemen III rockets with the new LGM-35A Sentinel, members of the WBA examined how the influx of contractors with the system's developers Northrop Grumman could impact businesses and the surrounding area.

WVCU additionally participates in programs with ties to the military such as the Adopt-an-Airman initiative organized by the Chamber's Military Affairs Committee and the 90th Missile Wing of the Air Force. This program matches those beginning their service and are stationed at F.E. Warren AFB with a community host who will include them in day-to-day activities. Staff and board members of the credit union have joined the initiative as hosts in past years.

Financial Partners Credit Union

Downey, California

Financial Partners Credit Union in Downey, California, has long held diversity as a core tenet of its culture, but until recently it did not have a formal DEI campaign.

The credit union enlisted the help of Franklin Covey, a professional training and coaching firm in Salt Lake City, in February 2020 to sit down with its staff and introduce concepts such as addressing unconscious bias. From there, the credit union completed a training program that ironed out the principles of diversity, equity and inclusion and proposed methods for understanding what is encompassed within each of them.

The credit union began the next phase of its campaign in January 2022 through the launch of its new DEI committee, which is composed of one executive sponsor and 16 staff members from all across the organization.

"We wanted to wade into the diversity, equity and inclusion arena, so starting with the idea of creating education around [DEI], making people aware of key ideas and concepts, has been the big focus this year," said Mark Lakatos, vice president of learning and development for FPCU and the executive sponsor of the committee.

Through the committee and supplementary efforts such as annual DEI surveys for gauging peer opinions on the effectiveness of programs, FPCU can gauge whether its recruitment and retention efforts are in line with its local communities.

"Obviously, financial products need to be sold and all that but it's more for our members and understanding their various situations and understanding how you may not be able to truly put yourself in somebody else's shoes because you just haven't had those same experiences," said Cami Briggs, senior vice president of human resources and learning and development with FPCU. "But by being empathetic towards them, it will help us provide the right level of support and advice to help the members grow their finances and manage their financial lives."