Hello, this is Samantha Shares.
This episode covers N C U Aâs Board Member Tanya Oatskaâs Remarks at Treasuryâs
Roundtable for Providing Financial Access to Justice-Impacted Individuals
The following is an audio version of those remarks.
This podcast is educational and is not legal advice.
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Before the remarks you may wonder what the definition of a
Justice-impacted individuals is.
Justice impacted individuals include those who have been incarcerated or detained in
a prison, immigration detention center, local jail, juvenile detention center, or
any other carceral setting, those who have been convicted but not incarcerated, those
who have been charged but not convicted, and those who have been arrested.
And now the remarks.
As Prepared for Delivery on April 24, twenty twenty four
Good afternoon and thank you to Deputy Secretary Adeyemo and everyone
at Treasury for convening this critical and timely discussion.
The credit union system is an important and unique part of our financial
system because it is centered around a cooperative business model that
is driven not by a profit motive or shareholder interests, but by
the needs of credit union members.
Many credit unions were created to serve communities that the traditional
financial system has long forgotten.
So, it is fitting that the NCUA and credit unions are at the table when
it comes to providing financial access to justice-impacted individuals
and marginalized communities.
One of the challenges justice-impacted individuals face when looking to
open a bank account is the lack of a driverâs license or other IDs typically
preferred or required by banks.
The NCUA previously issued an opinion indicating that it is acceptable to use
an individual taxpayer identification number (ITIN) to open an account, and
credit unions have led in this space.
For example, Stepping Stones Community Federal Credit Union, which is
here today, serves justice-impacted individuals at three local prisons
in Delaware by partnering with the Delaware Department of Corrections.
They use ITINs to open accounts for members and work with the business office
at the prison to gain identification information to establish the account.
The prison provides documents certifying the authenticity of the members and names.
As of November 2023, the program had 482 active accounts
totaling more than $300,000.
Several credit unions in New York City, including the Lower East Side Peopleâs
Federal Credit Union, Neighborhood Trust Federal Credit Union, Urban
Upbound, and USAlliance currently accept IDNYC, a municipal ID card that
New York City started issuing in 2014.
It is available to all residents of New York City, including people from some
of the most vulnerable communities, such as those who are unhoused,
justice-impacted individuals, immigrants, and others who may have difficulty
obtaining a government-issued photo ID.
Lastly, the NCUA recently updated its policy on preserving
minority depository institutions (MDIs) -- a main priority for me.
As a regulator whose focus is to ensure fair, safe, and accessible banking
services to credit union members, the NCUA is committed to preserving minority
depository institutions, providing technical assistance and support,
and encouraging new ones to form.
M D Iâs have a long history of bridging the gap to underserved communities.
Many of the credit unions doing the work of helping justice-impacted
individuals are M D Iâs.
Indeed, four out of the five credit unions I mentioned today are designated MDIs.
I am encouraged by the steps the agency and credit unions have
taken to address the financial gap justice-impacted individuals face.
However, we know that more needs to be done, and I look forward to hearing
from you all on how we can continue to expand access and economic empowerment
to more people and communities.
Thank you.
This concludes the remarks.
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This is Samantha Shares and we Thank you for listening.