Connie Scherrer, president/CEO of the new Seneca Nation of Indians Federal Credit Union, based in Irving, N.Y. and the year's second new charter, told a similar story. The 34-year banking and credit union industry veteran found herself facing a long, sometimes arduous development process.

Seneca Nation of Indians FCU was chartered May 15 to serve the 8,100 members of the Seneca nation and the 5,000 employees of its various business enterprises, including three casinos the Seneca own in upstate New York. The credit union, scheduled to open in August, also was years in the making, Scherrer said.

“Putting a realistic business plan and budget together and still staying conservative about it was a real challenge,” Scherrer said. “We put the paperwork through three years ago, but we feel the Seneca will truly embrace this and that we will be successful.”

Both new federally-chartered credit unions were subject to the rigors and requirements of the NCUA.

The agency maintains that the process for chartering a credit union has not become more complicated in recent years, according to Robert Leonard, director of consumer access in the NCUA's Office of Consumer Protection.

“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.”

Read more: CUANY assisted both newly-chartered credit unions this year …

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

In the case of Seneca Nation of Indians FCU, McLean said, the involvement started years earlier with meetings with credit union leadership. CUANY reviewed credit union financial projections, offered numerous sample policies and made referrals for potential business partners. The trade group also provided HR services, including salary descriptions, salary data and a job posting on the CUANY website.

Organizing the Finest FCU was a lengthy process, according to Stone, who held executive positions at Smith Barney, Bear Stearns and Merrill Lynch while also serving on the board and, ultimately, as vice president of the $47 million Consumers Credit Union in Brooklyn. N.Y.

Stone was originally tapped as The Finest FCU's president/CEO in 2007, but then loss of funding put the credit union formation on hold for seven years. A $2 million grant from insurance provider AmTrust Financial Services Inc. helped the credit union get the needed initial funding to open its doors, he said.

“Other than funding, the most important thing in starting a credit union is having a viable business plan, a strong vision of who you want your membership to be, what products you're going to offer and how you're going to go about doing it all,” Stone said.

The Finest FCU, which operates with four staff out of a single office in lower Manhattan, expects to end 2015 with about $7 million in assets, an amount it hopes will increase to $10 million and $12 million by year-end 2016, he said.

Greater Metro Federal Credit Union, a $90 million institution in Long Island City, N.Y., is working with the Finest FCU as a mentor institution and will also provide access for members of the new credit union through its various branches, Stone said.

Seneca Nation of Indians FCU started in a similar fashion, securing a $1 million grant from the Seneca Nation, with the promise of continued funding through the first five years as the credit union grows, Scherrer said. The credit union has ambitious plans for its August opening, including six staff operating three small branches in Irving, Niagara Falls and Salamanca, N.Y.

Both The Finest FCU and Seneca Nation of Indians FCU occupy distinct niches, which made it easier for them to attract support and gain members, the NCUA's Leonard said. A decline in the number of new charters over the years can be credited in part to a financial services market that is oversaturated, as well as the increasing challenges and rising costs posed by credit union operations.

New credit unions are given a 10-year pardon from some of the NCUA's more rigorous requirements in recognition of the fact that they are smaller institutions still in their startup phase. However, that does not entirely exempt them from increased regulatory burdens.

“The scope of regulations will still affect new credit unions, but smaller institutions would have more flexibility under agency rules,” NCUA Deputy Director of Consumer Protection Matt Biliouris explained. “As you get more sophisticated, more regulations apply, but the CFPB and the Federal Reserve have carve-outs that deal with new institutions and flexibilities afforded to small institutions to deal with those requirements.”