NCUA releases 2021 Credit Union Diversity Self-Assessment results

The National Credit Union Administration released the results of the 2021 Credit Union Diversity Self-Assessment (CUDSA). The NCUA administers the voluntary CUDSA as a tool to help federally insured credit unions assess, guide, and monitor their diversity, equity, and inclusion efforts and compare their progress with peer organizations.

“For the U.S. credit union system to succeed and achieve its full potential, diversity, equity, inclusion, and belonging must be a strategic objective,” said NCUA Chairman Todd M. Harper. “We have, across the system, seen improvements in DEI prioritization and performance in recent years, but we must strive to continue that progress. The CUDSA is a positive way for credit unions to embrace DEI principles. The 2021 assessment results provide credit unions with valuable information to measure and better manage their DEI progress.”

Among the highlights for 2021, 61% of responding credit unions reported a leadership and organizational commitment to diversity, 56% reported taking steps to implement employment practices to demonstrate that commitment, and 31% reported monitoring and assessing their diversity policies and practices. Also, for 2021, CUDSA submissions increased by 28.3%. As in previous years’ assessments, supplier diversity and transparency of diversity and inclusion practices remained areas for improvement.

The CUDSA helps credit unions evaluate their DEI practices against five core standards:

• Organization commitment to diversity and inclusion;
• Workforce profile and employment practices;
• Supplier diversity;
• Practices to promote transparency; and
• Approach to self-assessment.

Since the CUDSA launched in 2016 to comply with Section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, approximately 400 discrete credit unions have submitted the self-assessment to the NCUA’s Office of Minority and Women Inclusion for at least one year.

Historically, credit unions that submitted the self-assessment in two or more consecutive years have shown marked improvement in their diversity-related policies and practices over time. The CUDSA is not part of the examination process and completing the self-assessment does not affect a credit union’s CAMELS rating.

To read the full article, please visit NCUA.