Coalition Opportunity to Support Future De Novo Credit Unions

The Minnesota Credit Union Network thanks the Credit Union community for its support of Arise Community Credit Union. In the spirit of collaboration, we invite credit unions to join a new project with further opportunities to grow the credit union movement. 

In addition to Arise, MnCUN has been working with two more groups in the credit union chartering process – Tribe, founded by African American members who started as a “lending club;” and Gulf of Aden, an Islamic FOM-focused applicant. 
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Last week, the NCUA announced that it has granted a federal charter and Share Insurance Fund coverage to Tribe Federal Credit Union in Minneapolis. Tribe is the first federal credit union to receive a charter under the NCUA’s provisional charter pilot initiative. This pilot allows a credit union’s organizers to obtain a federal credit union charter and provides them 12 months to obtain the capital necessary to begin operations. A charter under the provisional pilot initiative does not authorize a credit union to accept member deposits or originate loans until the credit union obtains its targeted level of donated capital.

At this time, the proposed Gulf of Aden FCU is currently following the traditional chartering method. In both chartering scenarios, the NCUA requires the de novo credit union to have a credit union mentor. In working with the NCUA, MnCUN has created a new collaborative coalition model that will meet this mentoring requirement.

Based on the success of our collaborative efforts with Arise, we are working to build this coalition to provide mentors the ability to choose their mentee(s) and allocate time and resources collaboratively instead of a single-mentor approach. 

Mentee De Novo credit unions will be required to complete a self-assessment of areas of need as they progress from the chartering to operational phases. We’ll use this to match with mentors based upon the availability of time, expertise, and resources. Our vision is to have mentors from various credit unions that we can call on for their desired area of expertise, along with credit unions able to assist with financial support, as de novo credit unions seek our assistance as they make the transition from chartering to the day-to-day operations phase. 

Areas of assistance typically involve (but not limited to):

• Credit union procedures (account opening, lending, CU Accounting, ALM, etc.)
• Compliance and Regulatory Insight
• Small CU Best Practices (i.e., how to handle dual controls with a smaller office, human resources, etc.) 
• Required Reporting 
• Audits/Exams
• Board and Committee Duties and Responsibilities 
• Fundraising 

​If you are interested in participating with the coalition, please complete the volunteer form to indicate areas of expertise, time available, and if your credit union can provide financial support. Feel free to share with others in your credit union or networks that might be interested. Please note filling out the form does not require a commitment – we will follow up to confirm availability as the areas of assistance are requested.

With questions, please reach out to Dan Le, MnCUN General Counsel, or Andrea Molnau, MnCUN VP of Communications and Engagement.