CDFIs differentiate themselves from traditional banks and financial institutions through their mission-driven focus, targeted outreach, flexible underwriting, community engagement, impact measurement, access to capital, and provision of technical assistance and support. With a primary goal of promoting community development and social impact, CDFIs tailor their financial products and services to meet the unique needs of underserved populations. They use flexible underwriting criteria, engage closely with local communities, measure and report their social impact, bridge the capital gap, and provide additional support through technical assistance. By combining financial services with a commitment to social change, CDFIs play a vital role in fostering inclusive economic development and addressing the needs of marginalized communities.

While some credit unions may feel that a focus on underserved communities is just too risky, call report data consistently shows that the median CDFI credit union in every peer group outperforms the median non-CDFI in terms of earnings (return on average assets (ROAA), lending (Loans-to-shares), asset growth and membership growth. Inclusiv has published these findings in two research reports (Inclusive Finance 2018, 2020) and comparable findings have been independently reported by NCUA and CUNA in public presentations.

CDFIs have made significant impacts in various communities, improving access to capital, and fostering economic development. Here are a few links to success stories that highlight the positive outcomes achieved by CDFIs:

https://cdfi.org/success-stories/

https://www.ofn.org/impact-stories/

• Targeted Communities or Individuals that CDFI's serve:

• Underserved, underbanked and low-income individuals and families. 

• Minority-owned businesses and entrepreneurs 

• Nonprofits and community organizations 

• Affordable housing developers

• Native American tribes and communities.