The Supreme Court's rollback of affirmative action has given many credit union professionals pause on how to advance internal plans for diversity, equity and inclusion while remaining compliant with any future legal rulings.
Despite any direct impact on the financial services industry, the heads of many institutions and trade associations are taking a second, more scrutinized look at DEI programs in preparation of any possible challenges.
Renée Sattiewhite, president and chief executive of the African American Credit Union Coalition in Snellville, Georgia, recounted how members who sit at the helms of institutions across the country were concerned about the impact of the Supreme Court's decisions.
"My knee-jerk reaction was, oh my god, we've got Roe v. Wade and all these things are being returned that if we don't watch closely and speak out, we will be so regressed as a country that it will be hard to break away from what are currently the systematic racism behaviors and ideologies," present in the banking system, Sattiewhite said.
Sattiewhite emphasized that credit union leaders should remain outspoken "if they truly believe in the principles of DEI" and collaborate with their peers to address the issues that affect the industry as a whole.
"Find your strength in that power with like-minded individuals or organizations that still want to do the right thing, because that's really what it's about," Sattiewhite said.
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Regardless of the perceived benefits, roughly four out of every 10 workers held that it wasn't too important or important at all for them to work for a company with a mix of different ethnicities and ages.
Despite these setbacks, financial institutions are doubling down on expanding access to banking and credit union services for underserved markets by
Those who began their tenures in the credit union industry through the advent of affirmative action are calculating the impact recent developments might have beyond talent recruitment.
Starting as a file clerk for the $2.9 billion-asset PenAir Federal Credit Union in Pensacola, Florida,
"For me being a civil rights baby, being part of this quota system gave me an opportunity to grow," as well as further the growth of diverse employment opportunities across the credit union industry, Montgomery said. "Once we were able to really get into the credit union profession, it was so much easier for others in our community to say 'oh, this is a safe place.'"
Across her 47-year career, Montgomery went on to help found the AACUC and is currently CEO of Florida A&M University Federal Credit Union in Tallahassee, which has been providing financial support to students of the historically Black institution since being chartered in 1935.
The $29 million-asset FAMU FCU is active in the small-business lending space, Montgomery said. Many students began their entrepreneurial careers through the support of the credit union and its small-dollar loans, she said, but she worries that the recent changes will drive other lenders not affiliated with a historically black college or university away from offering similar services.
"We feel like [affirmative action] is not going to affect us because we've built that reputation, but there may be other credit unions that are not tied to HBCUs that may shy away from these entrepreneurs," Montgomery said.
Credit union executives mindful of the effects of any future rulings are paying close attention to the Supreme Court.
"We as credit unions will start to read the tea leaves to get out ahead of the curve and determine that if it's just the way society is going, and this is the way the government is going, let's just go ahead and get to that spot to be prepared for what appears to be inevitable," said Maurice Smith, chairman of the AACUC and retired CEO of the $4.1 billion-asset Local Government Federal Credit Union in Raleigh, North Carolina.