The $456 million Envision Credit Union and the $179 million Florida State University Credit Union, both based in Tallahassee, Fla., recently formed a new CUSO and partnered with a local church. The result: The opening of a new branch to support the economic development initiatives of an impoverished community.
Executives said they hope the CUSO can develop into a national model for credit unions looking to support revitalization efforts for distressed neighborhoods within small, midsize and large cities across the country.
Chuck Adcock, EVP for FSUCU, said he heard Bethel Missionary Baptist Church's Economic Development Ministry was looking to open a financial services center in Tallahassee's northwest section – the capitol city's historic Frenchtown.
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For years, the ministry was instrumental in facilitating the construction of new homes for first-time buyers, affordable housing for the elderly, small businesses, a family counseling center, a community center, baseball camps and charter schools.
"One of the ways to address poverty is that you have to help folks get back on their feet educationally and economically," the Reverend Dr. R.B. Holmes Jr. said. "The faith-based community just can't talk about it; we have to take control and act to rebuild our community. One of the missing components of that economic infrastructure was a real vibrant financial institution in the heart of our community."
Because the payday lenders charge what Rev. Homes called "ungodly rates," he knew the key to help people break the payday lending debt trap was to open a credit union, which would provide traditional financial products and services at lower rates and fees, along with financial education and resources to help members regain their financial footing.
Adcock said FSUCU was interested in the idea but determined that it needed a partner to spread the risk and costs of opening a new full-service branch, staffing it and providing financial education. FSUCU approached Envision because both credit unions already jointly own another indirect lending CUSO, and maintain formal and informal relationships on the business lending side.
Because both credit unions were founded by educators, they have always shared the bedrock value of providing free, comprehensive financial education resources and programs for members.
"The more we talked it through, the more the idea made sense to us," Adcock said. "The geography of the proposed branch wasn't ideal because we both have branches located close by. But at the same time, we felt like if the new branch had its own brand and created a sense of hope and pride within that community, then we could do something meaningful with it."
After months of planning and preparation, the 1,800-square-foot Frenchtown Financial Opportunity Center officially opened with a ribbon cutting ceremony on July 11. What's more, the branch's opening day drew more than 60 new member accounts.
"What we are trying to accomplish here is to fight predatory lending, and that is a big key for us," Envision President/CEO Darryl G. Worrell said.
The credit unions are also developing financial education-based training for the 15 minority churches in Frenchtown and the surrounding area.
Read more about this new Florida CUSO and how it will contribute to the economic development of an impoverished community in the July 27, 2016 print issue of CU Times.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
