“The requirements have remained steady over time,” Leonard said. “New charters require a field of membership that qualifies with federal chartering policy, the organizers must be of sound character and represent the members, and organizers must present satisfactory business and marketing plans showing that the credit union will be viable and sustainable over time.”

However, there are multiple steps within each one of those seemingly straightforward requirements that can significantly complicate the chartering process, say those who have undergone the exercise. Moreover, Leonard's summary says nothing about the growing mountain of regulations new credit unions face to which their predecessors from a decade earlier were not subject, according to Ron McLean, senior vice president and spokesman for the Credit Union Association of New York.

“Chartering a credit union certainly has become more difficult in the past decade as the complexity involved in operating a credit union has increased significantly,” McLean said. “Regulations alone and the increased regulatory burden make operating a credit union more challenging for the staff, leadership and board for a newly chartered credit union.”

CUANY provided organizational assistance to The Finest FCU, McLean explained. The state trade association began working with the newly chartered credit union months ago, primarily providing compliance and consulting assistance.

The NCUA also offers help to new credit unions seeking chartering support through its Office of Small Credit Union Initiatives, Leonard added. Despite such assistance, however, the majority of new credit union applicants never make it to the chartering stage.

“At any given time we have about 20 applications in the pipeline and only two or three of those applicants get chartered, so about 80% don't make it,” Leonard said. “A lot of times applicants don't realize how much time and effort is spent running an institution.”

CUANY's McLean agreed: “The bottom line is that it's a major undertaking to charter a new credit union. It requires a lot of vision and commitment from individuals for that dream of a new credit union to become a reality.”