MDI Credit Union Growth Expands Financial Security and Creates Opportunities

The NCUA Releases its Annual MDI Report to Congress Today

Minority depository institution credit unions expanded membership and services in 2023, promoting economic growth and financial security, particularly in underserved communities.

“MDI credit unions, through a combination of a focused mission, a strong sense of purpose, and dedicated staff and management, are performing well and making a difference in their communities,” NCUA Chairman Todd M. Harper said. “The numbers show these credit unions often out-perform larger institutions, but numbers only tell part of the story. MDI credit unions have been innovative in reaching underserved communities, tailoring products and services to members’ needs, and helping those members improve their financial standing and economic futures.”

The National Credit Union administration today released its 2023 report to Congress detailing MDIs’ performance and the agency’s actions in support of their efforts. The release was part of the agency’s MDI Awareness Month activities.

MDI Performance in 2023

The NCUA supervised 492 MDI credit unions at the end of 2023. Those credit unions reported:

  • More than 6.5 million members, a substantial increase from 5 million at the end of 2022;

  • Assets of $88.8 billion, up from $64.7 billion in 2022;

  • Loans outstanding of $59.3 billion, up from $42.2 billion the year before; and

  • As a group, a net worth ratio and return on average assets higher than the credit union system overall.

The 2023 report included MDI success stories documenting how credit unions have helped members secure affordable housing and transportation, have reached underserved areas, and have provided consumer education to help members manage finances, build savings, reduce debt, and improve credit scores.

Agency Support for MDIs in 2023

The NCUA in 2015 created its MDI Preservation Program to offer technical assistance and educational resources to MDI credit unions and, for those that also hold the low-income designation, access to Community Development Revolving Loan Fund grants and loans.

During 2023, the NCUA’s MDI preservation efforts included:

  • Chartering one new credit union, For Members Only, headquartered in Chicago;

  • Approving field-of-membership expansions for 21 MDIs, which added 891 new member groups or geographic areas and more than 4.7 million potential members;

  • Awarding more than $1.4 million in Community Development Revolving Loan Fund grants to 42 MDI credit unions;

  • Providing targeted assistance through the agency’s Small Credit Union and MDI Support Program;

  • Hosting a two-day symposium covering topics of interest and benefit to MDIs; and

  • Providing training and education through the agency’s Learning Management System, including 105 online courses with content specific to MDIs.

Federally insured credit unions self-designate as MDIs by affirming in the NCUA’s Credit Union Online Profile that more than 50 percent of their current members, the communities they serve, and their boards of directors are from one or a combination of the four minority categories defined in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989: Asian Americans, Black Americans, Hispanic Americans, or Native Americans.

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