FAQs or Frequently Asked Questions
How will the Credit Union benefit the community in comparison to a bank?
Credit Unions are not-for-profit and provide needs-based consumer services like low interest rates. Banks are for-profit organizations which seek to earn profits that are returned to the shareholders. Credit Unions are cooperatives in which resources are put back into member benefits, programs, and entities within the community through increased/improved services and better rates. They have a broad mission to be community-oriented and to serve people, not profit. A Credit Union like Arise Community Credit Union will be uniquely positioned to understand the challenges its community members face.
How can the public trust that deposits will be safe?
The Minnesota Department of Commerce requires that all state chartered Credit Unions are insured by the National Credit Union Association. As a result, deposits of up to $250,000 are insured.
What is the anticipated date that the Credit Union will become operational?
The exact date is unknown and heavily depends on when the application is submitted to the state and federal regulators and how long it takes them to review and approve it. However, after it is approved, ABEP is planning on a progressive opening/launch of the Credit Union, starting with basic consumer services and continually adding services as resources and capacity increase. Provision of services are, however, contingent upon the following factors: Completion of build-out of promised space Hiring and training of initial personnel for different departments, including a Credit Union CEO Implementation of community-specific financial programs and services Acquisition of specified number of members and specified amount of depositors’ money.
Will Northside residents play a role in deciding what products and services are offered?
Absolutely! However, services and lending will primarily be directed toward individual consumers and secondarily to local businesses in order to build and secure community wealth.
Will the Credit Union be owned and operated by African Americans?
Yes. Since members own the credit union, to the extent people in the African American community support and become members they will own and have a voice in the credit union. The credit union leadership will be a reflection of the core community it serves.
What are the main differences between a Credit Union and a traditional bank?
The main difference is that a Credit Union is member-owned and not-for-profit.
Will Arise Community Credit Union have a State charter?
Yes, we are applying for a State charter through the Minnesota Department of Commerce.
Will deposits be federally insured?
Yes, there will be federal deposit insurance through the National Credit Union Administration.
When will the Credit Union be open for business?
This will depend upon the regulatory approval timeline.
Will you have branch locations or just digital services?
We will have both. Plus, our members will have access to shared branch services at other credit unions, when that is more convenient.
What are the next steps?
First, we must receive the State charter and initial capitalization. Then, we will begin to launch the back office technology requirements for the Credit Union.
How can I get involved right now?
Please complete the community survey and attend community outreach meetings.
Also, please contact city and state officials or ABEP to provide a letter of support.