Last week, the National Credit Union Administration released a report summarizing the results of the 2023 Credit Union Diversity Self-Assessment. The assessment was established in 2016 by the Office of Minority and Women Inclusion (OMWI) as a voluntary way for credit unions to review their diversity and inclusion efforts, in compliance with section 342 of the Dodd-Frank Wall Streat Reform and Consumer Protection Act.
Over 330 credit unions voluntarily contributed to the survey for 2023, less than the 481 in 2022, but more than all prior years of its existence. In all, 7.3 percent of credit unions participated, with a higher participation rate as the credit union grows (as a measure of # of employees).
The survey, which was completed anonymously by credit unions between October 2023 and February 2024, helps credit unions evaluate their practices in five standards: Organizational commitment to diversity and inclusion; workforce profile and employment practices; procurement & business practices – supplier diversity; practices to promote transparency; and entities’ self-assessment.
Although the NCUA states “The aggregated data over 5 years show improvement within each standard,” the results suggest no change between 2018 and 2023 in the standards of organizational commitment (57 percent) and self-assessing diversity policies (30 percent).
The results show 50 percent of respondents have a written diversity and inclusion policy approved by management and the board, though 75 percent include DEI considerations in their strategic plan for recruiting and hiring.
Perhaps unsurprisingly, the area which saw the lowest affirmative responses was in the area of supplier diversity, which inquires as to the credit unions’ measures in securing contract bids from minority- and women-owned businesses (MWOBs). Despite 49 percent of respondents having leadership support to “incorporate supplier diversity into business planning cycles or initiatives,” fewer than 15 percent have a written supplier diversity policy, track the amount spent with MWOBs, or maintain a list of MWOBs for future bids.
The report also includes some interesting information on employee profiles at all credit unions and at those who responded to the survey. Of note, although credit unions with fewer than 50 employees make up a whopping 75 percent of the total number of federally insured credit unions, those employees make up only 11 percent of the total employee pool among all FICUs (350,119 employees). Conversely, credit unions with over 500 employees make up 3 percent of all credit unions, while employing 44 percent of all staff.
Women make up a majority of employees and managers among responding credit unions, though the percent drops the larger the institution gets. Roughly two-thirds of employees are White (66 percent), but this increases to 73 percent White for management and 76 percent White for board members.
In its summary, NCUA identified two areas credit unions should improve efforts: supplier diversity and transparency of diversity policies and practices. Of the report, NCUA Chairman Todd Harper said, “By publicly sharing the aggregated results of the voluntary credit union diversity self-assessment, we embrace a shared commitment to greater inclusion within the credit union system. We also better ensure that the system fulfills its statutory mission of meeting the credit and savings needs of members, especially those of modest means. These results show positive change in advancing diversity, equity, and inclusion across the credit union system, and I encourage all credit unions to review the results to evaluate and benchmark their own inclusion efforts against others.”
To read the complete report, visit the NCUA website.
