The NAFCU Journal January-February 2020 - 38

INSIDE NAFCU SERVICES

Financial Inclusion Efforts Drive
Business Revival in New Orleans
By NAFCU Services, in partnership with Mastercard 

A

round the United States, we
hear conversations about
income distribution, socioeconomic differences, and
gentrification. One thing is certain: The
need for improved financial inclusion
is as critical as ever to foster a growing
economy in all communities. 

As Mastercard's Center for Inclusive
Growth explains it, "Unleashing people's
economic potential starts with connecting
them to the vital networks that power the
modern economy." The Center's recent
study on financial inclusion in New
Orleans not only demonstrates the depth
of the need, but also justifies the investments in new inclusion programs. These
efforts resulted in real-life success stories
and created even more momentum in
New Orleans. 
The Claiborne Corridor of New Orleans
was once a place of thriving local businesses. But when the Interstate 10 overpass
was built in the 1960s, it had a devastating
impact on the community. In 2005, the
year Hurricane Katrina hit, 40 percent
of residents in neighborhoods along the
freeway were already living in poverty.

The Claiborne Corridor Cultural Innovation District (CID) was launched in
2017 to bolster business while retaining
foundational cultural traditions. The U.S.
Department of Commerce provided the
CID with an $820,000 grant, and philanthropic and community development
financial institutions (CDFIs) began
investing as well. 
In 2019, Mastercard's Center for Inclusive
Growth rounded up more than 60 Mastercard data scientists to study business
growth in the 3.9-mile stretch along
Claiborne Avenue including the CID.
The following is an excerpt from "Using
Data-Driven Insights to Help Revive a
Historic New Orleans Neighborhood,"
by Dr. Michelle M. Thompson and
Edward Lee of Mastercard's Center for
Inclusive Growth:
Between 2015 and 2018, the CID appears
to have experienced a dramatic rise in
consumer spending as compared with
the rest of the city. The indexed consumer
spending at CID retail businesses was 12
times greater than spending growth in
Greater New Orleans. In the larger LCC,
consumer spending grew by 16 percent.
With looming
concerns over
gentrification
and the displacement of longtime
residents, the
data-driven
insights will
help make the
case that "there's
still room and
opportunity for

38

local, minority-owned businesses in
the corridor," said Andreanecia Morris,
HousingNOLA executive director. "The
insights could also convince the city to
create a lending pool for minority-owned
businesses," she said, "and it can help level
the playing field for entrepreneurs."
Now we ask, where else can financial inclusion be emphasized to make credit unions
and their communities stronger? According to the FDIC, approximately 8.4 million
U.S. households were "unbanked" in 2017,
meaning that no one in the household had
a checking or savings account.

Unbanked Rates by State, 2017 

Source: 2017 FDIC National Survey of
Unbanked and Underbanked Households

There is still a distinct opportunity for
credit unions to engage their communities in a positive way, for positive change.
Improving the quality of life for those
in struggling communities is the most
important impact of these efforts; but the
benefits don't stop there. Credit unions
have the network power to drive business
investment and their local economies,
especially in these concentrated areas of
need. By connecting more people to the
financial services they deserve, credit
unions will continue to be one of the best
channels for building stronger communities around the country.  

THE NAFCU JOURNAL  JANUARY-FEBRUARY 2020



The NAFCU Journal January-February 2020

Table of Contents for the Digital Edition of The NAFCU Journal January-February 2020

The NAFCU Journal January-February 2020
Contents
Conferences
From the Chair
2020 Advocacy Priorities
The Bottom Line
Leadership Download
Warning: Speed Bumps Ahead
Stepping Into 2020
2020 Vendor Directory
Executive Spotlight
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal January-February 2020 - The NAFCU Journal January-February 2020
The NAFCU Journal January-February 2020 - Cover2
The NAFCU Journal January-February 2020 - Contents
The NAFCU Journal January-February 2020 - 2
The NAFCU Journal January-February 2020 - Conferences
The NAFCU Journal January-February 2020 - From the Chair
The NAFCU Journal January-February 2020 - 5
The NAFCU Journal January-February 2020 - 2020 Advocacy Priorities
The NAFCU Journal January-February 2020 - 7
The NAFCU Journal January-February 2020 - The Bottom Line
The NAFCU Journal January-February 2020 - 9
The NAFCU Journal January-February 2020 - Leadership Download
The NAFCU Journal January-February 2020 - 11
The NAFCU Journal January-February 2020 - Warning: Speed Bumps Ahead
The NAFCU Journal January-February 2020 - 13
The NAFCU Journal January-February 2020 - 14
The NAFCU Journal January-February 2020 - 15
The NAFCU Journal January-February 2020 - 16
The NAFCU Journal January-February 2020 - 17
The NAFCU Journal January-February 2020 - Stepping Into 2020
The NAFCU Journal January-February 2020 - 19
The NAFCU Journal January-February 2020 - 20
The NAFCU Journal January-February 2020 - 21
The NAFCU Journal January-February 2020 - 22
The NAFCU Journal January-February 2020 - 2020 Vendor Directory
The NAFCU Journal January-February 2020 - 24
The NAFCU Journal January-February 2020 - 25
The NAFCU Journal January-February 2020 - 26
The NAFCU Journal January-February 2020 - 27
The NAFCU Journal January-February 2020 - 28
The NAFCU Journal January-February 2020 - 29
The NAFCU Journal January-February 2020 - 30
The NAFCU Journal January-February 2020 - 31
The NAFCU Journal January-February 2020 - 32
The NAFCU Journal January-February 2020 - 33
The NAFCU Journal January-February 2020 - Executive Spotlight
The NAFCU Journal January-February 2020 - Management Insight
The NAFCU Journal January-February 2020 - Compliance Central
The NAFCU Journal January-February 2020 - 37
The NAFCU Journal January-February 2020 - Inside NAFCU Services
The NAFCU Journal January-February 2020 - 39
The NAFCU Journal January-February 2020 - From the President’s Desk
The NAFCU Journal January-February 2020 - Cover3
The NAFCU Journal January-February 2020 - Cover4
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