We are honored to be a CDFI and to serve in the growth of our community, and as a CDFI, we want to make a difference. What is CDFI? It is a financial institution that provides credit and financial services to underserved markets and populations, primarily in the USA but also in the UK. Since the act that created Community Development Financial Institutions in 1994, CDFI’s have deployed over $5.2 billion in funds to support the mission of promoting access to capital and stimulating local economic growth in those communities most in need. Source: https://www.cdfifund.gov/about In response to the pandemic, the CDFI fund provided nearly $1.5 billion in funds in monetary awards and grants targeted at low-income populations. This investment in our economy during the pandemic resulted in a 50% increase in lending and investment activity by CDFIs in their local communities, contributing to the financing of almost 50,000 affordable housing units and more than 124,000 businesses. A 2017 survey by the FDIC concluded that 25% of the households in the United States are underserved or underbanked. Underserved or underbanked are those that don’t have a bank account, or have an account, but primarily use services outside the traditional banking system (i.e., payday lending and other predatory lending services). It is extremely difficult for those on the outside of the banking system to enter back in or establish the foothold necessary for financial stability. Our VP of Strategic Development, Daniel Bednar, and the team worked hard over the past couple of years to attain this special CDFI designation. “CDFIs make a difference, and we wanted to set up our members and the community as best we could to have equal access to loan products and banking services.” In late 2021, CBC FCU received a technical CDFI grant and we were thrilled to be able to have those funds to make investments in the following areas: Mobile banking in Spanish – Complete! Marketing material translations – In progress! Consumer ITIN lending – Complete! Lending Documentation in Spanish – In progress! Diversity and Inclusion – In progress! Financial Education – On-going! Team Support – On-going! CBC Federal Credit Union’s mission is to provide products and services that reach the underserved and underbanked populations and provide them access to the financial education, credit building, and lending opportunities needed for lifelong financial security.
