How does your CDFI connect to the ‘brand’ of CDFI Certification?

CDFI Certification is a designation given by the CDFI Fund to specialized organizations that provide financial services in low-income communities and to people who lack access to financing. Theoretically, obtaining certification means that you adhere to the principles and practices of mission driven lenders. Being part of the ‘club’ entitles you to apply for funding (from the CDFI Fund, several state agencies, financial institutions, and philanthropy) not otherwise available without evidence of certification. Theoretically, Certification programs can build confidence in your product and credibility in your brand. 80% of consumers say they consider trust a deciding factor in their buying decisions. Today, the CDFI industry is enjoying unprecedented visibility, acceptance, and financial support. When it comes to financing opportunity and economic justice, I quote Carly Simon and Snoop Dogg - “Nobody does it better.”

So, all things considered, one would expect to see, at a minimum, the CDFI Certification badge/sticker or logo on their websites. We were curious, so a few years ago we reviewed the websites of certified CDFIs using the list the Fund publishes every month, and looked hi and low for the ‘sticker.’ The results? Well, let’s just say we were not prepared for what we learned. So much so, that the intern that did the analysis made it clear that ‘talking Jason down off the ledge’ was not included in ‘other duties as assigned.’

Fun fact: every newly certified CDFI receives a ‘Welcome’ package that includes talking points and a jpg file of the “Certification” badge or sticker to place on their website and marketing materials.

Admittedly, evidence of industry certification on a website is only one measure of ‘brand equity.’ So, we then looked for web copy that references their designation as a CDFI, explains purpose of CDFIs and the value of certification, and highlights the key differences between a CDFI and conventional lenders. Again, the results were disappointing. After sharing the results with me, not only did the intern not try to ‘talk me down off the ledge,’ he didn’t even bother to tell anyone where I was!

Let’s be clear about one thing: the sector’s membership associations and advocacy organizations, like OFN, Inclusiv, and CDBA, and the CDFI Coalition, are doing a fantastic job in promoting the brand, and provide ‘top shelf’ resources for the industry for messaging. Props also go to state CDFI associations who carry the flag at the local level.

However, the bottom line is that ultimately, it is the responsibility of individual CDFIs to have strong brand identity and an external communication strategy to inform, convince, and influence the decision-making process of borrowers, stakeholders and funders. If we don’t fully embrace the brand, then it is likely that CDFIs across the country may be leaving money on the table - which I define as missed opportunities to connect with credit-worthy individuals that don’t meet conventional lender requirements, and whose dreams may die in the bank parking lot.

We need to do everything we can to define, protect, and defend ourselves in a very crowded market. Fortunately, it appears that the initial changes* proposed to the CDFI Certification application, published in May 2020, will go a long way to protecting the brand, especially from the numerous ‘bad actors’ - entities that obtained certification, but are not operating in the spirit and practice of mission-driven lenders.

In the meantime, bring everyone around the conference room table and together proclaim - “I'm on a mission to give my community just and fair access to capital to finance a more inclusive and equitable economy!”

Note: this post was originally published in 2021, and I am happy to report that the final revised Certification application will achieve achieve one of it’s stated goals - to protect the brand!