How to Create a Credit Union Guide with Case Studies

In recent years, credit unions have seen an increase in their commercial skills. Using a series of case studies, this study demonstrates how credit unions have evolved to provide professional services and suggests important elements to consider to successfully establish these goods and services.

The Process of Creating a Credit Union

If you’ve been thinking about starting a credit union, the National Credit Union Administration has launched a new resource to assist you in your endeavor. The National Credit Union Administration (NCUA) charters national credit unions, which means it issues the license that allows a new credit union to legally function. Before filing for preliminary charter approval, you may build a detailed and realistic action plan by reviewing the materials made available by the NCUA, which include whitepapers, spreadsheets, and useful statistics.

A detailed overview, the NCUA guide lays down the procedure into phases that make it easier to comprehend.

“Beginning a credit union is a huge endeavor, and those who embark on this challenge must be aware of the complexities of the procedure,” said Debbie Matz, chairperson of the National Credit Union Administration’s board of directors. “This new guide is basically a road map to success, detailing in-depth how to execute the procedure,” said the author of the new guide.

The National Credit Union Administration’s Office of Small Credit Union Initiatives advises prospective company owners to examine several criteria before beginning the process, including:

• Would a credit union in the region where you want to establish one be a welcome addition to the financial landscape?
• Do you have a management group that is prepared to take over the reins of the organization?
• Are you able to acquire the required funds to pay the expenditures associated with the pre-and post-chartering phases?

Once you’ve concluded that a credit union is necessary and that it can be effectively established and operated, you can proceed according to the NCUA’s plan.

Organizers recommend that members first investigate the chartering procedure, then prepare for the union’s particular location and membership pool, as recommended by the organization. You must decide where you will open your first store as well as who you will target as consumers to be successful. Customers in the future will also determine whether or not you will need to apply for a low-income classification for your company.

For a start-up to go to the second stage, funding must be secured. A substantial amount of capital is required for a profitable credit union to cover the costs of obtaining a charter, building a site, and hiring employees, not to mention the costs of providing financial goods. The National Credit Union Administration (NCUA) provides information on determining start-up costs.

As a next step, you must obtain the cooperation of credit union authorities and management, if you haven’t previously done so As soon as the decision-makers have been identified, a more detailed business strategy may be developed, as well as a system for maintaining accurate records. On the website of the National Credit Union Administration, you may discover information on federal credit union bylaws.

Creation of a Credit Union Case Studies

Alliant Credit Union

When compared to other high-interest savings accounts, Alliant Credit Union’s High-Rate Savings account offers higher rates as the account’s balance rises, rather than the other way around. As long as your account’s average daily balance remains over $100, Alliant will credit your account with an annual percentage yield of 0.55 percent. As a result, it makes no difference whether you deposit $500 or $100,000; you will receive interest at the same rate regardless of the amount you deposit.

Alliant will eliminate your monthly maintenance charge as a thank you for opting to get your financial records electronically. Thus, you may be assured that the money you earn in interest will reside in your checking account for the long haul. Alliant will also cover the cost of your $5 minimum initial deposit, which is a little price to pay for the convenience.

It is crucial to note that this credit union does not have many branches, making its mobile and internet experiences even more significant. Alliant offers highly rated applications for both Apple and Android devices, as well as an easy-to-use website. Each one enables you to deposit checks remotely, however, there are more than 80,000 fee-free ATMs in the United States that you may use to make withdrawals and deposits through as well.

How Alliant Credit Union was created

• A small number of United Airlines personnel joined together to form a credit union in order to better their financial situation. In its early years, the United Airlines Employees’ Credit Union was a close-knit group of employees who shared a vision of offering a secure place to save and obtain loans at competitive rates.
• In the years since this humble beginning, Alliant has steadily increased the scope of its goods, services, and digital capabilities while remaining committed to a low-cost business strategy. Throughout the decades, they have maintained growth via innovation, attentive member care and service, and other factors.
• Their success can be attributed in part to the fact that they place a great emphasis on member perks. Potential offers are reviewed by the Board of Directors based on their overall value to the membership as well as their influence on financial results. The quality of new goods and services, as well as their capacity to increase credit union revenues and provide “giveback” to members, must all fulfill stringent standards of competitive price and quality.
• Alliant Credit Union is one of the biggest credit unions in the country, with more than $14 total assets and 600,000 members around the country. They provide better-than-bank rates, enabling members to save more and profit more as a result of their services. The credit union also provides users with top-notch internet banking, an award-winning mobile payment app, pension and investment services, continuous personal financial education, and 24/7 customer care, which is available even on weekends and holidays.

Why it Became Successful

• The award-winning financial organization attributes its fast expansion to a renewed emphasis on member requirements.
• Their digital approach guarantees that Alliant has a genuine digital emphasis and one of the finest cost structures in the business. As a result, Alliant is able to provide members with industry-leading prices and offerings. Smart clients should shop, according to their advice. The digital companion you have now is superior.
• A non-profit organization like Alliant is organized to deliver exceptional value rather than earn a profit for its shareholders. This is why they provide one of the best savings rates and a 2.5% cashback credit card to their customers. There are more than 80,000 free ATMs for Alliant members to use (more than the combined ATM network of the two major banks), as well as 24/7 access to smartphone advisors who are genuine individuals just like their customers.
• Alliant’s difference is based on its fundamental business strategy: putting members first. Differentiation in the direct banking sector is one of the toughest obstacles for a FI to overcome.
• Their members are the focus of everything they do, and they’re all in! They have been able to assist people to reach their financial objectives by providing the finest options. According to Chief Banking Officer Jason Osterhage, “we’re here to give our members the highest returns and price them the least costs feasible.”. “Our members recognize that it’s a superior approach since it’s based around the individuals who select Alliant.”
• When it comes to assets, Alliant is one of the country’s most valuable credit unions, with more than $14 billion in assets under management.

Blue Federal Credit Union

Savings accounts at Blue Federal Credit Union yield a competitive interest rate and checking accounts are free of monthly fees. If you fulfill certain requirements, you may be able to open a checking account that pays a high dividend on your account and gives ATM rebates. It’s difficult to go wrong with Blue FCU’s affordable rates, low fees, and nationwide shared branching.

How Blue Federal Credit Union was created

• Blue’s tale begins in the 1950s. At F.E. Warren Air Force Base in Cheyenne, Wyoming, a group of civilian employees sought a better method to the bank and founded Warren Federal Credit Union, which was federally chartered in 1951. Together, the founding members recognized, they could do more than they could individually. 70 years later, the philosophy of people helping people is still a guiding principle.
• Warren Federal Credit Union has been serving the greater Cheyenne region for 65 years, establishing roots and earning the confidence of both military personnel and civilians. Since becoming the largest credit union with branches in five counties in southern Wyoming, Warren Federal Credit Union has won several honors and accolades while remaining loyal to its members across Wyoming and beyond.
• When growth was predicted for 2015, people started debating what it would look like. The state of Colorado was chosen as a development region for Warren after extensive deliberation, member feedback, and long-term strategic planning. Community Financial Credit Union was one such institution that provided an opportunity.
• The Rocky Flats Environmental Technology facility in Broomfield, Colorado, where Community Financial Credit Union (CFCU) was founded to serve the financial needs of its employees more than 50 years ago, has a similar story. CFCU increased its service area to include Broomfield and the neighboring areas after merging with Boulder Municipal Employees Credit Union.
• Community Financial Credit Union was the ideal partner for a merger with another extremely successful Colorado-based credit union. While Warren and Community Financial were doing well and expanding, they were up against stiff competition from other financial service companies in the area. Instead of going head-to-head, they chose to combine in order to have a stronger regional footprint and better economies of scale.
• It was decided to unite because two long-established credit unions in Wyoming and Colorado understood how much they had in common and how much more they could do as a single entity.
• To reflect the new name, the credit union changed its name to Blue Federal Credit Union. When you join Blue Federal Credit Union, the sky is the limit. The name Blue pays tribute to Warren Air Force origins (Air Force Blue), the beautiful Rocky Mountain Front Range, wide skies, and pure waterways.
• Blue Federal Credit Union’s growth accelerated dramatically between 2016 and 2019. New members stated that they joined because Blue matched their goals and provided assistance in achieving them. Within those three years, Blue gained almost 25,000 new members. Hundreds of states and nations were represented, including Germany, Spain, and the Philippines, in addition to Wyoming and Colorado. According to new members, one of the primary reasons they joined Blue was because of the company’s fun-loving, upbeat culture, a great feeling of individual and corporate ethics, and genuine concern for members’ financial and personal success.
• By the year’s conclusion, the topic of expanding into new locations and communities was once again a hot topic. Beginning in 2020, Blue Federal Credit Union announced the purchase of two Liberty Savings Bank branches. For a long time, Liberty Savings Bank has been regarded as a financial organization dedicated to building long-term connections with its members. In the end, after a year of negotiations, Blue received deposits totaling almost $100 million, gained over 2,000 new members, and opened two new branch offices in Colorado, one each in Denver and Granby. Similar to how credit unions got their start, people recognized they could do more as a group by combining their money, financial knowledge, and time.

Why it Became Successful

• To form Blue Federal Credit Union, Warren Federal Credit Union combined with Community Financial Credit Union in April 2016.
• Members of the Colorado and Wyoming Air Force, as well as municipal workers, have been served by Blue Federal Credit Union for more than a century. Blue Federal Credit Union is the region’s oldest credit union.
• By joining forces, the two disparate groups create one cohesive one that is capable of doing more while working as a unit. More benefits for our members, communities, and workers, all at no additional cost.
• Creating a real cooperative with roots in and inspiration from the communities they serve, a commitment to long-term connections with members, and a philosophy that success is a two-way street led their every move.

Navy Federal Credit Union

In all branches of the military, Navy Federal Credit Union caters to service personnel and their families. In the 2021 U.S. Credit Card Satisfaction Study, Navy Federal received excellent scores for banking and credit card customer service, indicating that your experience with the credit union should be positive.

How Navy Federal Credit Union was created

• To help themselves and their coworkers achieve their financial goals, seven members of the Navy Department formed Navy Federal Credit Union towards the conclusion of the Great Depression. A credit union, in their minds, would provide low-cost loans with flexible repayment periods. They intended to encourage people to save for the future by offering a secure haven where they could do so while still earning interest. As a result, they gathered their resources and extended an invitation to others.
• There are now members from all the military branches, veterans, Department of Defense personnel, and their families as well as the original group of naval employees in 1933. With ten million member-owners worldwide, they’re happy to fulfill their individual requirements now as they did back in the day.
• Their employees are still motivated by the same vision that guided their company’s founding fathers.

Why it Became Successful

• Knowing your contact information isn’t enough for compassionate service. It’s recognizing and respecting what’s important to you and making an effort to understand and care for it. The reason for this is because they are really interested in your financial well-being and want to assist you in achieving your life goals.
• Due to their mission of serving the whole membership, they aim to do what is best for them all as a whole. In other words, it’s the morally correct thing to do. As a result, you may be certain that they are on your side 24 hours a day, 7 days a week.
• There is a strong focus on supporting the financial health and well-being of service members in active duty and veterans as well as their families.
• The basis of the Navy Federal Credit Union is solid. They abide by a strict Code of Ethics that emphasizes truthfulness and openness in the delivery of their goods and services to customers.

Final Thoughts

Once the fundamental planning is complete, the National Credit Union Administration (NCUA) will assist you with applying for a charger by providing checklists, spreadsheets, and example documents.