I was talking with the CEO of a credit union this last week, and he remarked on how much the influx of deposits had driven down their net worth. We have heard about similar challenges from many of our clients.
It all got me thinking about an interesting credit union deposit program we’re participating in, which not only makes good business sense but also aligns perfectly with our core values and company goals. The money market account we recently opened at HOPE Credit Union is part of its Transformational Deposit program, which is designed to help the credit union inject more capital into its community.
Based in the Deep South, HOPE serves one of our nation’s most impoverished regions. Because its ability to secure local deposits is limited, this program aims to import $100 million in deposits, allowing both individuals and businesses outside the region to indirectly support a historically underserved population.
One of our core values here at PixelSpoke is “Everybody Wins,” and participating in HOPE’s Transformational Deposit program is a shining example of this value in action. As part of our ongoing diversity, equity, and inclusion work, we are continually identifying opportunities to vote with our dollars, and we know that lack of access to capital for Black communities is a formidable obstacle when it comes to racial and economic justice. This reality came into stark focus when big banks prioritized large companies over small and Black, Indigenous, and People of Color (BIPOC)-owned businesses for Payroll Protection Program loans.
As a worker-owned cooperative, we are also constantly on the lookout for opportunities to apply principle #6, Cooperation Among Cooperatives, in practice, and HOPE’s innovative Transformational Deposit program beautifully embodies this cooperative spirit.
Could a partnership like this be a way for your credit union to improve its net worth ratio and support your community by offering high-balance members access to a program like this? Maybe it’s a crazy idea, but I always like to ask the question.