Mission as Strategy: What All Credit Union Leaders Can Learn from CDFIs

It’s an important question for credit unions considering certification as a Community Development Financial Institution (CDFI): How will this impact our financial performance?

A new research brief from the Filene Research Institute, created with research support from CU Strategic Planning, provides a compelling answer.

In Amplifying Your Credit Union’s Mission: Financial and Community Impacts of Being a CDFI, Filene provides evidence that CDFI credit unions don’t just serve their communities more deeply. They also outperform their non-certified peers on nearly every major financial metric, from asset and loan growth to return on equity. The report updates and expands on a similar analysis from 2015, also published by Filene with CU Strategic Planning.

The findings are compelling. Where earlier data showed a mixed picture, the new report finds that certified credit unions are consistently stronger performers, without an increase in delinquency or charge-offs. This matters not just for CDFI credit unions, but for any credit union considering the path.

A Decade of Change in the CDFI Landscape

When Filene last studied the financial outcomes of CDFI credit unions a decade ago, results varied. “Star” performers—those who embedded community development into their business model—stood out. But overall, CDFIs were slightly behind their peers in profitability.

Today, it’s a different story. CDFI credit unions now show:

• Nearly double the member growth

• Significantly higher loan and asset growth

• Higher interest income and net worth

• Increased ROA and ROE

• No corresponding rise in charge-offs or delinquencies

The research included NCUA data from over 4,700 credit unions between 2000 and 2023 and controlled for variables like asset size, membership, and staffing to isolate the impact of certification.

In short, the field has matured. Not only are more credit unions becoming CDFIs, they’re also using the designation strategically, with strong infrastructure and alignment across the organization.

What’s Driving the Shift?

Several factors contribute to this trend. First, the number of certified CDFI credit unions more than doubled between 2015 and the end of 2024, when 491 credit unions were CDFI-certified.  

Second, the ecosystem around CDFI certification has improved. More firms now offer specialized services to help credit unions navigate not just the certification process, but the ongoing reporting, compliance, and strategic planning needed to fully realize the benefits.

Third, many credit unions have begun to treat community development as a central part of their business strategy, rather than a side project. That includes designing products for underserved populations, forming local partnerships, offering financial counseling, and tracking progress toward long-term goals.

As Filene’s report notes, this approach creates what one leader called “a virtuous cycle.” With clear priorities, staff engagement improves, lending becomes more inclusive, and the financial performance strengthens as a result.

What This Means for Credit Union Leaders

Filene’s study is timely, especially as more credit unions explore CDFI certification or consider how to make better use of their designation.

The research suggests that CDFI certification, when used as a true business strategy, supports both mission and margin. It also challenges lingering assumptions that deeper service to low-income or financially vulnerable members necessarily increases risk. In fact, the data shows the opposite.

For leadership teams, this presents a key question: Is our credit union doing everything it can to align strategy, operations, and community impact? Certification alone won’t deliver results—but combining certification with targeted programs, smart partnerships, and clear goals can.

Key takeaways

Treat CDFI as an enterprise strategy, not a side project. 

Filene’s interviews show the strongest outcomes when CDFI strategies align the whole organization around a few clear community needs. 

Use partners to navigate complexity and reporting. 

The report highlights how third-party expertise helps credit unions handle technical applications and ongoing monitoring so teams can stay focused on members.

Design programs that create measurable mobility. 

From affordable housing to microbusiness lending and payday alternatives, winning programs are tailored to the local population and built for measurable impact. 

From Insight to Impact

Filene’s research affirms what we’ve seen firsthand at CU Strategic Planning. Since 2015, as the CDFI landscape has matured, so have we. What was then a team of seven has grown into a 35-person employee-owned company in partnership with Callahan & Associates. We work with hundreds of credit unions ranging from under $500,000 to nearly $19 billion in assets. Together, we’ve helped secure more than $1 billion in CDFI funding.

Across that work, one theme is consistent: credit unions that treat community development as a core business strategy, rather than a box to check, generate deeper impact and stronger results.

That’s good for members and the bottom line, too—and for the long-term sustainability of the credit union movement.

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If you’re ready to translate these findings into a growth plan for your credit union, whether by deepening your current CDFI work or exploring certification for the first time, we’re here to help. CU Strategic Planning partners with your executive team to secure funding, build the roadmap, and deliver outcomes that change lives and strengthen communities.