The Business Case for Credit Union Diversity
The business case for diversity in credit unions is simple: diversity is a good investment. Credit unions were founded on the premise of people helping people. It makes good business sense to have members, managers, and employees reflect the community credit unions serve and for credit unions to serve diverse segments within their communities. Diversity leads to better service, greater innovation, improved solutions, and increased membership. These things make credit unions strong and sustainable, which ultimately leads to greater strength for the entire credit union system.
Credit Union Diversity Standards
The Office of Minority and Women Inclusion is responsible for assessing the diversity policies and practices in federally insured credit unions. On May 26, 2015, the NCUA Board approved the final Interagency Policy Statement Establishing Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies (opens new window) to provide a framework for credit unions to create and strengthen their diversity policies and practices. The diversity standards focus on five keys areas:
- Leadership commitment to diversity and inclusion;
- Employment practices related to diversity and inclusion;
- Supplier diversity policies and practices;
- Transparency of diversity and inclusion practices; and
- Assessing and monitoring diversity and inclusion practices.
Voluntary Credit Union Diversity Self-Assessment
To assist credit unions in implementing the diversity standards, the NCUA created the Voluntary Credit Union Diversity Self-Assessment (opens new window), approved by the Office of Management and Budget. The assessment is a tool for assessing and building diversity and inclusion policies and practices. Instructions for completing and submitting the assessment are already posted here (opens new window).
Credit unions are encouraged to complete the assessment annually. The NCUA will collect responses from credit unions at the end of each calendar year. Collected data will be aggregated and reported to Congress annually.