In Underbanked Areas, Credit Unions Pick Up the Slack

Heard of food deserts? Some neighborhoods are banking deserts, where credit unions are the only reputable financial service providers. Now, these community institutions are getting easier access to federal recognition.

1 minute read

February 9, 2017, 1:00 PM PST

By Philip Rojc @PhilipRojc


Credit Unions Sign

wiredforlego / Flickr

If you're tired of Chase or Citibank branches as ubiquitous as Starbucks, don't be. In some low-income communities, banks are few and far between. Unless they want to take their chances with payday lenders and the like, credit unions can be residents' only option. 

Often, Oscar Perry Abello writes, "In neighborhoods that other institutions largely neglect, religious congregations cobble resources together to provide access to child care, education, healthcare, workforce development and even financial services." Credit unions can be one of those services.

In an uncertain federal climate, entities like the National Credit Union Administration (NCUA) and the U.S. Treasury's CDFI Fund are still making it easier for credit unions serving low-income populations to get certified. As community development financial institutions (CDFIs), credit unions can better support small business lending. The CDFI ecosystem also includes banks, venture funds, and loan funds, which often back affordable housing.

Abello writes, "The CDFI Fund's grant programs can often support for hiring new staff or training staff to expand product offerings. Public sector support is often the only way such credit unions can finance expanded product offerings."

Tuesday, February 7, 2017 in Next City

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

April 30 - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30 - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

April 30 - Next City