Operations

Federation Receives Grant for Shared Banking Platform

Seed capital will help smaller CUs work together.

June 17, 2013
/ PRINT / ShareShare / Text Size +

Cathie Mahon

A $250,000 grant from Citi Community Development will enable the National Federation of Community Development Credit Unions to develop a shared banking platform for its member credit unions.

The system will create uniform, shared procedures for back-office processing and services, including technical support, member service, and accounting support teams—increasing efficiency and enabling consistent delivery of services to millions of families who have limited access to affordable financial products and services.

The Federation’s network includes 244 community development credit unions (CDCUs) in 45 states, serving more than 1.7 million predominantly low- and moderate-income members.

“We need to build a system that helps us to aggregate our collective work and create some cost efficiencies," says Federation President/CEO Cathie Mahon.

The new system will help CDCUs:

  • Stay up on the changing financial environment;
  • Meet members' evolving expectations; and
  • Ease the growing compliance burden.

The idea for the Federation’s shared banking initiative has been brewing for years and will likely take considerable time to develop, Mahon said. The grant is a positive first step.

The Federation, Mahon says, will reach out to member credit unions this summer to learn more about how a shared banking platform can help.

Citi Community Development works to provide financial inclusion and economic empowerment for underserved individuals, families, and communities by working with nonprofits and public agencies across the country, according to its website.

“Community development credit unions fill a critical gap in access to banking services and credit for low-income and minority communities,” says Bob Annibale, Citi global director of community development and microfinance.

Mahon and Annibale addressed the Federation’s 2013 Annual Conference in Baltimore.

Citi also funds leadership program

In addition to the $250,000 grant for shared banking, Citi also pledged $125,000 to support a Federation leadership program.

The grant will fund six-month fellowship programs in up to 15 participating credit unions serving some of the nation's most impoverished and financially underserved communities. 

Today, the average age of CEOs at CDCUs is nearly 60, and the median age for credit union members is 47. To ensure that credit unions continue to focus on developing a pipeline of future leaders, the Federation created the Finance Leaders for America (CFLA) program.

CFLA’s intensive training program includes a two-week summer institute, including one week of in-person training, online training, and ongoing support.

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive