As #BankBlack Moves Money, Black Credit Unions Are Ready

When Ervin Gardner joined other Black bankers a couple of weeks ago to strategize ways to make credit union services appealing to a younger generation, he was encouraged when the conversation turned to building unity and economic empowerment in Black communities.

“The bottom line is economics,” said Gardner, board member of the Chicago Post Office Employee Credit Union. People in leadership, those making decisions—policy, financial, and otherwise—respect unity and money.

“If African American financial institutions can grow, our issues and grievances can be addressed,” Gardner said, citing lack of investment and inequities in resources for Black communities as well as police abuse.

Gardner and more than a hundred African American credit union professionals and volunteers were attending the annual African American Credit Union Coalition convention, which coincided with a renewed national campaign to #BankBlack as a constructive response to frustrations over discrimination and disempowerment in Black communities.

While the number of Black-owned banks is down to only 22, there are 318 Black credit unions uniquely positioned to invest in their communities. The goal of the convention was to determine how to reach younger customers and increase membership and deposits to credit unions, both of which have been falling in recent years.

In July alone over a million dollars shifted to Black banking institutions—and therefore Black communities.

Black buying power is over a trillion dollars and projected to be $1.4 trillion by 2020. Neilsen reported earlier this year that the rate of “Black people making more than $75,000 a year [is] growing faster in size and influence than Whites in all income groups above $60,000. And as African American incomes increase, their spending surpasses that of the total population in areas such as insurance policies, pensions, and retirement savings.”

Impressive numbers that have big marketers paying attention. But here’s the problem:

Not many of the current $1.2 trillion in spending dollars circulate in Black communities for long. And if money doesn’t stay in a community, it’s not going to benefit that community. In fact, according to Brook Stephens’ book Talking Dollars and Making Sense: A Wealth Building Guide for African-Americans, the lifespan of the dollar in Black communities is about six hours, compared to 28 days in Asian communities, 20 days in Jewish communities, and 17 days in White communities.

So Gardner’s sine qua non for respect—unity and money—is lacking in the Black community. That’s why the current #BankBlack movement is critical. And why credit unions—small community financial cooperatives owned by the folks who have accounts—can be powerful.