One of the organizations that Presidential candidate Harris references in her biography is her college sorority, Alpha Kappa Alpha (AKA). Just over a year ago, this organization chartered a credit union.
I don’t know if Vice President Harris is a member of the credit union. However, this new charter has the potential to put credit union’s unique role front and center in the campaign.
Following is some additional information on this newly chartered group.
Chartered in February 2023, For Members Only Federal Credit Union is “the FIRST, Black-owned, woman-led, sorority-based, digital banking financial institution in the history of the United States.“
Presidential candidate Harris joined the sorority while attending Howard University. Its members will undoubtedly be active in the presidential campaign.
Financials After One Year
As of March 2024, the “FMO” credit union reported 7,489 members with an average share balance of $467. The balance sheet numbers include: $4.2 million total assets, no loans, $3.5 million in shares, and $717,000 in capital.
The following is from a press article at the time of the chartering announcement:
ALPHA KAPPA ALPHA SORORITY INC. ROLLS OUT DIGITAL CREDIT UNION FOR ITS MEMBERSHIP, AIMING TO HELP BUILD WEALTH
Alpha Kappa Alpha, the nation’s oldest Black sorority, is entering the financial services space to reportedly help build generational wealth.
The For Members Only (FMO) Federal Credit Union in Chicago is being launched by the prominent organization. The institution has gained its federal charter and shares insurance coverage from the National Credit Union Administration (NCUA) and is expected to begin operations this year, based on this news release.
Founded in 1908 at Howard University in Washington, D.C., Alpha Kappa Alpha (AKA) is an international services organization with 355,000 members and 1,061 graduate and undergraduate chapters in the United States and in 11 countries per its website.
The credit union plans to offer safe, fair, and affordable financial products and services digitally. It will serve members, future members, and their communities. It plans to provide members various savings and loan services its first year, including checking accounts, online banking, and debit cards.
“As the first Black-owned, woman-led, sorority-based, (and) 100% digital financial institution, we are poised to deliver innovative financial solutions that drive economic growth for our members, chapters, families and employees of Alpha Kappa Alpha Sorority,” AKA International President Danette Anthony Reed shared in a letter written to members and reported by the Atlanta Journal-Constitution.
Unlike banks, credit unions often are non-profit institutions serving members. Being member and cooperatively-owned, they can sometimes offer higher rates on savings accounts and lower rates on loans because they have lower operating costs and don’t pay profits to shareholders.
NCUA Chairman Todd Harper said among his comments, “This charter is also in keeping with AKA’s current initiatives to assist members in building economic wealth, promote social justice, and uplift communities, all of which are fundamental to the statutory mission of credit unions.”
Banking analyst William Michael Cunningham says the AKA Credit Union launch is a significant development that will have a positive impact on the Black community. He says he believes anyone can join a credit union if they are within the credit union’s field of membership.
He says relative to the overall Black community, their common bond membership has higher income, is wealthier, has more stable employment, and are better educated. “This is a very attractive demographic around which to base a bank or financial institution.”