Bridging the Financial Gap: How the Native American Credit Union Coalition aims to Strengthen Financial Futures in Indian Country

The financial landscape in Indian Country presents significant challenges, particularly for Native American women and small business owners. These challenges include stark wage gaps, barriers to homeownership, and limited access to traditional banking services. The Native American Credit Union Coalition (NACUC) members are coming together to improve financial outcomes in Indian Country.

The Economic Reality for Native Women and Families

Native American women working full-time, year-round earn, on average, only 59 cents for every dollar earned by non-Hispanic white men. This substantial wage gap directly impacts family well-being, as more than half of Native women serve as the sole or primary breadwinners for their households. Financial inequities at this level make it difficult for Native families to build savings, access credit, and secure stable housing.

The Homeownership Divide

The path to homeownership is another uphill battle for Native Americans. In 2019, the homeownership rate for Native Americans was 50.8%, compared to 73.3% for non-Hispanic white Americans—a stark 22.5 percentage point difference. Homeownership is a crucial element of wealth-building, yet systemic barriers, including limited access to mortgage financing and land ownership complexities, often prevent Native families from realizing this goal.

Small Business Struggles

Native entrepreneurs face unique difficulties when trying to start or expand a business. Accessing loans—a critical factor in business formation and growth—is significantly harder for Native-owned businesses than for their non-Native counterparts. Traditional lenders have historically underserved Native communities, limiting economic development and entrepreneurship.

The Importance of Local Financial Institutions

Financial inclusion starts with access to credit union services. Early-life exposure to local financial institutions has been shown to improve long-term consumer credit outcomes. Yet, Native communities face significant challenges in this regard. A 2017 study revealed that for tribes in the contiguous United States, the average distance to the nearest banking branch or ATM was 12.2 miles, with some communities being over 70 miles away from the closest financial institution. Without accessible financial services, many Native individuals remain unbanked or underbanked, limiting their ability to save, invest, and build credit.

The Unbanked Challenge

A shocking 16.3% of Native Americans are unbanked meaning they do not have access to a checking or savings account. This rate is higher than other racial and ethnic groups, including Black (13.8%), Hispanic (12.2%), White (2.5%), and Asian (1.7%) populations. Without basic banking services, individuals are forced to rely on costly alternatives like payday loans and check-cashing services, which can lead to cycles of financial instability.

How the Native American Credit Union Coalition aims to make a Difference

The Native American Credit Union Coalition is working to improve on these statistics by ensuring Native communities have access to financial services tailored to their unique needs. By fostering the growth of credit unions serving indigenous populations, NACUC aims to close the financial services gap and create long-term economic stability for Native individuals, families, and businesses. We are laying the foundation for a stronger financial future through these key initiatives:

• Networking and Collaboration – Connecting credit unions serving indigenous populations to facilitate shared learning, strategic partnerships, and a unified approach to overcoming financial challenges.

• Resource Sharing – Providing tools, best practices, and financial education resources to strengthen credit union operations and ensure sustainable growth.

• Community Support – Championing initiatives that enhance financial education and expand access to credit.

• Professional Development – Offering training, mentorship, and leadership development to support Native American credit union professionals in advancing their careers.

• Advocacy – Working to influence policy changes that address financial disparities and promote equitable economic opportunities for Native communities.

The financial disparities faced by Native Americans are deeply rooted, but they are not insurmountable. Expanding access to credit unions, improving financial literacy, and advocating for policies that support Native economic development are key steps toward closing the wealth gap.

The Native American Credit Union Coalition and its members are committed to being part of the solution. Together, we can build stronger financial futures for Native communities across the nation.