In honor of Black History Month, Community Financial salutes the history of black credit unions that were established in the 1920s and 30s in America.
Early black credit unions were established by African-Americans to help move farmers and urban groups toward economic independence. Racial discrimination limited African-Americans from having access to the same opportunities as other Americans. The establishment of black credit unions meant African-Americans no longer dealt with financial rejection based on racial discriminatory practices.
The establishment of black credit unions skyrocketed in America with the energy of the Civil Rights Movement. During the 1960s, a flourishing number of credit unions were set up to serve low-income groups, often in African-American neighborhoods. From these credit unions birthed the National Federation of Community Development Credit Unions (NFCDCU) in 1974. The NFCDCU promotes financial inclusion by organizing, supporting, and investing in credit unions that serve underserved communities.
Today, the operation and development of credit unions that serve members in predominantly low-income and minority-based neighborhoods still thrives. It is to the credit of institutions such as these that a number of minorities and low-income families are able to purchase their first home, achieve financial stability, and obtain products and services that help make dreams come true.
Community Financial is proud to acknowledge the rich history of black credit unions and salute their accomplishments in the midst of economic, political, and social challenges.
We are also proud to celebrate our own history of lessening economic disparity in the communities we serve by donating to local organizations that help those in need.