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22 Latinx Credit Unions And Why They Matter
The coronavirus pandemic has exacerbated the issues the Hispanic and Latinx communities — who have been historically neglected by the U.S. banking system — face. Access to banks and credit unions is even more vital now, as stimulus checks and unemployment benefits are widely relied on.
But the fact is 16.2% of U.S. Hispanic and Latinx households don’t have a bank account. And of the people who do, almost 30% are underbanked. Which means they have an account, but still depend on other resources like cash checks or payday loans.
“Lack of trust is probably the number one cause why Hispanics and Latinos are highly unbanked and underbanked,” says Maria J. Martinez, President and CEO of Border Federal Credit Union (BFCU).
Latinx credit unions fill the gaps in service and give Hispanic and Latinx communities the resources they need — regardless of immigration status, the forms of identification or the language they speak.
Why do we need Latinx credit unions?
The reasons the Hispanic and Latinx communities are underserved by banks vary, though it’s fair to say that mistrust is a big part of the equation. Many traditional U.S. banks have rigid identification requirements or limited bilingual resources that can limit someone’s ability to manage their finances or plan for the future.
[ Read: The Best Banks in October 2020 ]
“Some credit unions may lack the bilingual staff within their organization, but if they are in areas where Hispanics and Latinx live and work, then they should start recruitment efforts in these communities,” says Martinez.
Unlike banks, Latinx credit unions focus on the community around them. These not-for-profit institutions are making significant strides to ensure people have the resources they need and explain how to get them when they don’t.
“Other credit unions need to start being comfortable about serving Hispanics and not view this relationship as an expense but as a long-term strategic investment,” says Martinez.
What resources do they offer?
According to Martinez, “Hispanic consumers want to bank where they feel welcome and where they find bilingual staff who are familiar faces from the community.”
The financial counseling and special products offered by these credit unions help the Latinx populations make smart money decisions and allow them to stop relying on predatory alternatives to bail them out of financial uncertainty.
[ Read: The Best Bad Credit Personal Loans in 2020 ]
There are 108 credit unions across the country that belong to Juntos Avanzamos (Together We Advance) — a program that provides affordable banking opportunities directly to the Latinx communities. Juntos Avanzamos has a network across 26 states, including Puerto Rico and DC. Participating credit unions provide access to affordable services and resources by:
- Offering financial education resources
- Accepting alternative proof of credit history, like rent or utility payments
- Accepting alternative identification like an ITIN (Individual Tax Identification number) or Matrícula Consular
- Providing bilingual staff and documentation
- Having Latino board members or members of the executive team
State by state Latinx credit union locations
Here’s a list of Latinx credit unions that are a part of Juntos Avanzamos.
| Arizona | Vantage West Credit Union – 8 locations MariSol Federal Credit Union – 2 locations |
California | Self-Help Federal Credit Union – 3 locations Tucoemas Federal Credit Union – 4 locations Travis Credit Union – 2 locations |
Colorado | Security Service Federal Credit Union Partner Colorado Credit Union – 4 locations |
Connecticut | Nutmeg State Financial – 8 locations Members Credit Union Greylock Federal Credit Union |
Florida | Tampa Bay Federal Credit Union – 5 locations Manatee Community Federal Credit Union Self-Help Federal Credit Union Guardians Credit Union – 3 locations |
Illinois | Ascentra Credit Union – 9 locations Lilliana Financial |
Iowa | Community 1st Credit Union – 8 locations Des Moines Metro Credit Union Marine Credit Union |
Michigan | Neighborhood Trust Federal Credit Union Marine Credit Union – 3 locations Community Promise Federal Credit Union Prime Financial Credit Union – 3 locations Self-Help Federal Credit Union |
Missouri | Holy Rosary Credit Union – 4 locations Unity One Federal Credit Union Community 1st Credit Union – 5 locations |
New Jersey | Lower East Side People’s Federal Credit Union North Jersey Federal Credit Union – 3 locations Brooklyn Cooperative – 2 locations Neighborhood Trust Federal Credit Union 1st Bergen Federal Credit Union |
New Mexico | Rio Grande Credit Union – 6 locations Guadalupe Credit Union – 4 locations |
New York | Lower East Side People’s Federal Credit Union Brooklyn Cooperative – 2 locations Neighborhood Trust Federal Credit Union North Jersey Federal Credit Union – 2 locations US Alliance Financial 1st Bergen Federal Credit Union |
North Carolina | O.A.S Staff Federal Credit Union – 2 locations DC Credit Union – 3 locations SkyPoint Federal Credit Union – 3 locations Alive Credit Union Lower East Side People’s Federal Credit Union North Jersey Federal Credit Union |
Ohio | Nueva Esperanza Community Credit Union Community Promise Federal Credit Union Notre Dame Federal Credit Union – 7 locations |
Oklahoma | Tinker Federal Credit Union – 8 locations True Sky Credit Union – 2 locations |
Oregon | Point West Credit Union Icon Credit Union – 6 locations Lower Valley Credit Union – 3 locations |
Puerto Rico | Sagrada Familia Cooperativa – 3 locations Jet Stream Federal Credit Union |
| Texas | First Central Credit Union Border Federal Credit Union Caprock Federal Credit Union EECU – 5 locations Randolph-Brooks Federal Credit Union Resource One Credit Union Randolph-Brooks Federal Credit Union Security Service Federal Credit Union Southwest Credit Union – 2 locations |
| Utah | Security Service Federal Credit Union – 9 locations City Center Credit Union |
| Washington | Seattle Credit Union – 9 locations Lower Valley Credit Union |
| Washington, D.C. | DC Credit Union – 3 locations O.A.S Staff Federal Credit Union SkyPoint Federal Credit Union – 3 locations North Jersey Federal Credit Union – 2 locations Lower East Side People’s Federal Credit Union |
| Wisconsin | Marine Credit Union – 7 locations Self-Help Federal Credit Union Prime Financial Credit Union – 2 locations |
Too long, didn’t read?
Latinx credit unions are giving their communities the opportunity to participate fully in the economy by building models that promote access to financial tools. Though it’s not easy to build a strong economic plan like Juntos Avanzamos, small steps, like understanding client needs and gaining their trust, lead to bigger scale successes.
Martinez adds, “In order to understand Hispanics, credit unions must become more educated about this group. We must understand them as consumers, but more importantly, as people and the identity they represent as a diverse community.”
Maria J. Martinez is the President and CEO of Border Federal Credit Union (BFCU), headquartered in Del Rio, Texas, serving 13 counties. She is active as the Co-Chairwoman of the Network of Latino Credit Unions & Professionals (NLCUP) Association.
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Reviewed by
Andrea Perez
Personal Finance EditorAndrea Perez is an editor at The Simple Dollar specializing in personal finance. Prior to that she specialized in digital marketing content for online learning websites. She holds a master’s degree in journalism and media studies from the University of South Florida.
