By Brian Branch, CEO, World Council

Immigration has increased dramatically around the world today. As of 2017, India was the largest nation to experience populations migrating out of the country at 17 million and Mexico was the second largest at 13 million, according to the United Nations. At that time, 67% of all international migrants were living in just 20 countries. The largest number of international immigrants (50 million) was the United States. In the US, 25% of immigrants are from Mexico and a quarter of immigrants live in California, according to Department of Homeland Security. Nearly half of immigrants in the US are not documented. Immigration has become a major political issue in the US.

Please join us at the Underground Collision in Las Vegas where Brian, California Coast CU CEO and Ventura County CU Board Member Roxy Ostrem for a lively discussion on this! Click here to register today!

There are two sides to this coin: the communities from where refugees and immigrants come from and the communities to where immigrants and refugees arrive. Credit unions everywhere are community-based organizations. Many of the economic and geopolitical challenges that displace refugees have their roots or their impact at the community level. Those communities turn to their credit unions to mitigate those challenges.

In Central America, rural communities which once offered work in agriculture or small cottage industry can no longer compete with cheap imports. We work with credit unions that reach deep into most remote rural areas to expand lending to small and medium enterprises that provide jobs for young people so that they may have an economic future in their own communities. In other regions civil conflict disrupts local economies. In Ukraine, we work with credit unions to provide a stabilizing source of financing for agriculture and jobs in a region destabilized by external intervention.

In those communities that receive refugees, the initial flow has assets and resources, but with time and subsequent migrations, refugees arrive with little to no resources and no safety-net networks. Initial receptivity wears thin and societal stresses increase. Again, host communities turn to their credit unions to help integrate the refugees into the local economy. In Colombia, Peru and Ecuador, we work with credit unions to settle Venezuelan refugees with professional certification, employment training, financial literacy and asset building accounts. Where credit unions can help give refugees a start, economic stability avoids civil conflict later.

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Australian credit unions and mutuals have recognized an opportunity to serve the growing Muslim population under age 30. The Customer Owned Banking Association (COBA) and World Council documented and shared Islamic Based Credit Union Finance principles to reach young Muslims. Mutuals, local foundations and regional governments match incoming immigrants with regional community professional, labor and education opportunities to help immigrants settle into rural communities looking to grow their communities.

Credit unions address the root drivers of instability. We help people earn their livelihood and finance jobs, help settle refugees into communities and address the conditions that drive the migration of refugees— such as civil conflict and poverty. In doing so, credit unions provide economic—and therefore—political stability.

Back in the US, the California Reinvestment Coalition has urged credit unions and banks to offer safe and affordable financial services for this population, including accounts that will not overdraft with daily purchases and offer loans to help finance immigration fees, so they will not be relegated to predatory financial services providers. The coalition also recommends establishing policies on IDs used to open accounts and disclosure of privacy rights. Credit unions partner with community organizations and religious facilities serving immigrants in the community.

Credit unions in the US have long served immigrants. For example, Polish & Slavic Federal Credit Union formed to serve New York City’s Polish & Slavic immigrant communities, many of whom have limited experience with banks and encounter cultural and language barriers. To serve immigrants, PSFCU offers low-cost international remittances, and its new products include accounts for undocumented immigrants and temporary residents.

Immigration has become a politically and emotionally charged issue in the US. The global credit union movement has the tenacity and wherewithal to help with both sides of this coin. WOCCU challenges credit unions worldwide to embrace the diversity.

The World Council is often asked for assistance. Yet the US domestic context is our classroom and our model, but not our experience or mandate. During the panel World Council will host at the Oct. 26 Underground, we are not talking politics. We will have a unemotional, nonpolitical discussion about credit union service to immigrants and refugees: the market opportunities, the community engagement and the perceptions of doing so. How easy or hard is it? What are the legal and regulatory frameworks, due diligence requirements and the policy framework implications? What are the implications in terms of communication, marketing and diversity approach?

We look forward to hearing from you,

B-