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Native Americans are the most likely group to be unbanked in the U.S., according to a Federal Deposit Insurance Corporation (FDIC) survey, and many lack access to banking services and ATMs. Native American-owned banks and credit unions help address this issue by providing financial services to Native American communities. While anyone can bank with a Native American bank or credit union, these institutions aim to serve and empower Native American individuals. To qualify as a Native American bank or credit union, these institutions must either be majority-owned by Native Americans or have a board of directors that’s majority Native American.
What Is a Native American Bank or Credit Union?
A Native American bank or credit union is a type of minority depository institution (MDI) that’s majority-owned by Native Americans or has a board of directors that’s majority Native American. These banks and credit unions also primarily serve Native American communities and seek to provide their customers with affordable and accessible banking services and products. As MDIs, Native American banks receive assistance from the government to operate, particularly technical and management assistance. Banks are for-profit institutions, whereas credit unions are member-owned organizations. Recommended: Guide to Checking Accounts
Why These Institutions Are Important
Native American-owned banks help equip American Indian and Alaska Native communities with financial education and empowerment. As mentioned, Native Americans are the most likely group to be unbanked, meaning it’s difficult for many people and businesses to access checking and savings accounts, loans, mortgages, credit cards, and other financial services. Online banking isn’t necessarily a solution, since not all tribal residents have access to broadband. Lack of access to banking also impacts people’s credit scores. A poor or nonexistent credit score makes it even harder to access affordable loans. Native American banks and credit unions can help combat these problems and connect people with affordable products and the opportunity to build their creditworthiness.
Minority Depository Institutions (MDIs)
Native American-owned banks and credit unions are a type of MDI, which are institutions that are majority-owned or governed by people of color. MDIs came into being with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.To be designated as an MDI, the bank must have more than half of its voting stock owned by minority individuals (Black, Native American, Hispanic American, or Asian American individuals). Alternatively, it must have a Board of Directors where the majority of people are minority individuals and predominantly serve minority communities. Federally designated MDIs receive government assistance, such as technical, training, and education programs, and preservation of minority ownership in the case of a merger or acquisition.
Community Development Financial Institutions (CDFIs)
Similar to MDIs, community development financial institutions (CDFIs) have a mission to support economically disenfranchised communities. They support community development by providing financial services, loans, investments, training programs, minority-owned businesses, and other development efforts. Along with providing banking services to underserved communities, CDFIs often run microloan programs to help small business owners launch and grow businesses. They may also provide small business grants for minorities or fund affordable housing and community facilities.
Active Native American-owned Banks and Credit Unions
The FDIC maintains a list of Minority Depository Institutions. Here are some of the active banks that are Native American or Alaskan Native American owned.
Bank
State
TOTAL ASSETS (by thousands)
LUMBEE GUARANTY BANK
NC
489,483
BAY BANK
WI
226,885
NATIVE AMERICAN BANK, NATIONAL ASSOCIATION
CO
231,667
FIRSTBANK
OK
591,407
ALLNATIONS BANK
OK
50,943
F & M BANK
OK
674,410
LOCAL BANK
OK
309,395
GATEWAY FIRST BANK
OK
2,066,690
CHICKASAW COMMUNITY BANK
OK
496,438
THE PAULS VALLEY NATIONAL BANK
OK
309,389
FIRST NATIONAL BANK AND TRUST COMPANY
OK
883,452
CARSON COMMUNITY BANK
OK
160,655
SECURITY STATE BANK OF OKLAHOMA
OK
340,203
THE FIRST STATE BANK
TX
82,527
PINNACLE BANK
IA
311,272
WOODLANDS NATIONAL BANK
MN
350,400
PEOPLE'S BANK OF SENECA
MO
406,606
TURTLE MOUNTAIN STATE BANK
ND
166,853
LEGACY BANK
CA
47,184
EAGLE BANK
MT
120,860
The National Credit Union Administration (NCUA) maintains a list of credit union MDIs. Here are some of the Native American credit unions active today, including their state, total, assets, and total members.
Credit Union
State
Total Assets
Total Members
URW COMMUNITY
VA
$218,540,020
33,936
MUNICIPAL
NY
$4,358,020,453
601,677
PRIMEWAY
TX
$735,726,391
49,981
TUSKEGEE
AL
$11,679,249
2,059
JETSTREAM
FL
$238,913,358
14,354
LIBERTYONE
TX
$167,135,249
9,117
TEACHERS
OK
$7,518,423
2,306
MIAMI POSTAL SERVICE
FL
$186,470,010
13,522
SOUTHWEST
NM
$76,833,662
4,538
HICKAM
HI
$672,345,996
48,348
HAWAII
HI
$105,122,079
11,881
SCHOOLS
CA
$179,639,934
15,653
NORTHERN NEW MEXICO SCHOOL EMPLOYEE
NM
$36,147,558
1,684
COOPERATIVE CENTER
CA
$138,530,203
8,096
KAUAI
HI
$144,441,928
7,328
MOLOKAI COMMUNITY
HI
$36,469,670
4,305
GLENDALE
CA
$115,050,754
8,154
HAWAII FIRST
HI
$46,433,853
7,905
SANTA ANA
CA
$99,063,771
5,221
LAKOTA
SD
$11,331,618
3,847
STATE EMPLOYEES
NM
$1,098,727,089
52,885
EAGLE COMMUNITY
CA
$370,071,387
22,915
1ST VALLEY
CA
$48,897,210
2,811
Supporting Your Local Financial Institutions
Anyone can bank with a Native American-owned bank or other MDI. These institutions are committed to supporting communities that have historically been excluded from mainstream banking services. By banking with an MDI, you can help support its mission and community. Keep in mind, though, the differences between banks vs. credit unions. While almost anyone can open an account with a bank, credit unions have specific membership requirements. You might need to live in a certain area or work for an eligible employer to join.
The Takeaway
Native American-owned banks and credit unions serve traditionally underbanked communities and help equip people with financial self-sufficiency. While these banks primarily serve indigenous communities, anyone can join these or other minority-serving institutions to support their mission. When searching for a bank account, look for services and products that meet your needs. If a high-yield savings account is a priority, Lantern can help you find and compare your options, including interest rates, minimum balance requirements, and fees. Compare high interest online savings accounts and find today’s best rate with Lantern.
Frequently Asked Questions
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Photo credit: iStock/Fly View Productions
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About the Author
Rebecca Safier
Rebecca Safier has nearly a decade of experience writing about personal finance. Formerly a senior writer with LendingTree and Student Loan Hero, she specializes in student loans, financial aid, and personal loans. She is certified as a student loan counselor with the National Association of Certified Credit Counselors (NACCC).
