Minority-Serving CUs Made Great Strides in 2022

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Credit Union News

2022 a Good Year for Minority Focused CUs

In 2022, minority depository institution (MDI) credit unions saw growth in membership, assets, and loans, providing access to financial services in under-resourced communities. Two new MDI CUs were chartered, geographical field-of-membership criteria were increased, and training programs for MDI personnel occurred. The National Credit Union Administration (NCUA) supported MDIs through programs, grants, and technical assistance, highlighting their essential role in serving historically underserved communities.

Todd M. Harper, chairman of the NCUA, spoke about the report:

Andrea Gacki Appointed FinCEN Director

Andrea Gacki was appointed as the director of the Financial Crimes Enforcement Network (FinCEN) by Treasury Secretary Janet Yellen. Gacki’s previous experience includes time spent implementing economic sanctions and combating illicit finance threats in the Office of Foreign Assets Control. The decision to name her FinCEN director came in part because of her experience promoting national security and safeguarding financial information.

AI & Blockchain

Celsius Pays $4.7B, Ex-CEO Faces Fraud Charges

Celsius ex-CEO Alex Mashinsky has been arrested and charged with fraud, while Celsius itself agreed to pay a $4.7B settlement with the Federal Trade Commission (FTC). Mashinsky and Celsius' CRO could face prison time, and the settlement permanently bans Celsius from offering certain services. The company also owes approximately $4.7B to customers whose funds were frozen in 2022, and the settlement will only be paid once the assets are returned. The SEC and Commodity Futures Trading Commission sued Mashinsky too.

The director of the FTC’s Bureau of Consumer Protection, Samuel Levine, wrote:

New Checking Accounts More Digital than Ever

Digital banks and fintechs are gaining ground in the battle for new checking accounts, comprising nearly half (47%) of all new accounts opened in 2023, up from 36% in 2020, according to a survey by Cornerstone Advisors. Traditional banks' share declined, but consumers still maintain relationships with legacy institutions for in-person services and safety concerns. However, the ability to access desired features and tools is driving customers to new platforms. The disintermediation of financial footprints is challenging traditional banks to rethink their checking account products.