New credit union will open later this year in area largely lacking access to traditional financial services.
The NCUA has granted a federal charter and share insurance coverage to WeDevelopment Federal Credit Union in Kansas City, Missouri.
The credit union, the first federal credit union chartered this year, will carry a low-income designation and is expected to open later this year.
“What the WeDevelopment organizers have accomplished is a clear reminder of the credit union system’s statutory mission of meeting the credit and savings needs of members, especially those of modest means,” NCUA Chairman Todd Harper said. “They will be serving a low-income membership to provide access to safe, fair, and affordable financial services.”
The Credit Union’s Membership
NCUA officials said that the credit union will serve a community with a poverty rate of about 30%. During its first year of operation, the credit union expects to offer a variety of products, including regular shares, share drafts, signature loans and business loans.
The credit union will serve people who live, work, or regularly conduct business in, worship, attend school, participate in associations headquartered in, or participate in programs to alleviate poverty or distress in a specified area in Jackson County, Missouri.
The Community Voice, a website that covers Black issues in Kansas City reported that the city’s core Black community is considered a banking desert, with residents having little or no access to traditional financial services.
“Instead of mainstream banks, the community is proliferated with check cashing, title loan, and payday loan companies,” the website reported.