Without Dade County Federal Credit Union (DCFCU), CEO George Joseph says, many of his members would default on their loans, and many would simply be unbanked.
While it has members of all income levels, "Dade County Federal serves the average Joe out there who lives paycheck to paycheck," Joseph says. "We serve the individual who, if they lost their job today, they would be out of a place to live in less than a month. These are not individuals who have six months of salaries saved."
It is designated as a low-income institution by the National Credit Union Administration (NCUA), meaning at least half of its members earn less than 80% of the area's median income.
"We serve the individual who, if they lost their job today, they would be out of a place to live in less than a month. — George Joseph, CEO of Dade County Federal Credit Union
While it embraces technological advances, Joseph wants the old-school personal touch to remain a priority. It's "the time-consuming part that the typical banker or fintech or financial company out there won't do." That means seeking out grants to assist homebuyers or offering lower interest rates on loans or credit cards for members who complete financial education classes.
It offers similar courses at area high schools and colleges. Last year, DCFCU teamed up with Miami-Dade County's Community Action and Human Services Department to launch an online financial literacy platform with budgeting tools and credit management guidance.
DCFCU was founded 87 years ago by 10 county employees who pooled together $135 in a cigar box. County and state employees remain a bedrock of the credit union, says Joseph, who has been CEO for 25 years.
Today it has more than 110,000 members and $1.6 billion in assets. Those numbers should continue to grow after the NCUA approved DCFCU's applications to expand into Broward County in 2024 and then last year to Palm Beach and Monroe counties.
DCFCU plans to add two branches to each county by 2030 and already has opened a Pembroke Pines outlet. Joseph knew Broward County had demand since about a quarter of DCFCU's members lived there before the expansion.
"We're serving a community of our existing members," he says.
The NCUA considers under-served areas as a factor in expansion decisions.
Demand appears to exist, with DCFCU adding nearly 10,000 new members in 2024. More members will bring economies of scale, Joseph says, meaning members may see lower interest rates on loans or credit cards, or higher rates on savings. But all the patience and handholding can't guarantee successful outcomes, Joseph acknowledges.
The hardest part of his job remains "sitting in a meeting and looking at individuals who have lost their jobs, or individuals who have to turn in their car or someone who has no place to live." — By Michael Fechter