New York Episcopal Federal Credit Union

Based on a recent estimate, 10% of Americans are unbanked (no banking relationships) and another 25% are underbanked, meaning they have either a checking or savings account, but usually not both. Demographically, these groups tend to be younger, poorer and more than likely people of color.

Without access to traditional banking services, they’re forced to rely on expensive alternative financial products/services to cash their paychecks, pay their rent and utilities, send money to their families and swipe a card (prepaid, of course) at a store or a gas pump. If they run short or there’s an unexpected bill, high-interest payday loans are usually their only alternative.

Being unbanked costs individuals who can least afford it about $3,000 per person per year, according to the Financial Health Network. These exorbitant fees and interest penalties don’t count towards building credit, so the unbanked and underbanked are usually “credit invisibles.”

New York Episcopal Federal Credit Union was conceived to begin to change this scenario for members of our parishes and communities.

Our credit union will be a sustainable financial institution that will meet the needs of the people and institutions in our Diocese with affordable loans, and banking services, and financial wellness seminars and counseling. We will make special efforts to reach out to the marginalized and unbanked among us who are not now welcomed by commercial banking institutions.

While there are some limitations as to who can join, any person who participates in any our parish outreach ministries (whether as a recipient or volunteer) may become a member of our credit union along with every member of our Episcopal parishes and institutions.

It is our intention to expand the membership criteria to be as broad as possible. For example, every guest of our feeding ministries, every family whose child comes to an after-school program, and every person who participates in any “outreach” ministry of an EDNY parish is within our field of membership. It will certainly be open to organizations and programs affiliated with our parishes and even those that just use our space.

Our credit union will be an ongoing demonstration of our commitment, as Episcopalians, to address financial inequality and to make reparations for the economic barriers erected by structural racism within our society.

For the past seven years, our task force has been working to make the New York Episcopal Federal Credit Union a reality. Towards this end, the Episcopal Diocese of NY and Trinity Church Wall Street have pledged a total of $500,000 as an initial capital contribution. A consultant was retained to assist us in developing a detailed business plan which is now pending before the NCUA (The National Credit Union Agency) the agency that oversees credit unions and issues charters.

Recently, the NCUA indicated that it was prepared to issue a charter, but would require an additional capital commitment of $350,000.

Beginning the summer of 2022, we launched a diocese-wide fund-raising campaign asking parishes and individuals to pledge toward our total goal of $350,000. The pledges would be payable over a three-year period. Congregations of different sizes and different backgrounds may join as full partners at different levels. So far we have raised $182,800. That's only $167,200 to go!

Our campaign goal will be shared across 182 parishes and our nearly 40,000+ members. In addition to our parishes, we will be asking affiliated organizations and all parishioners to pledge as well.

The initial years of the credit union development call for a cautious and conservative plan to ensure sustainability while we identify and begin to work with those in need of financial education and counseling.

In addition to our initial capital, our credit union expects to receive support — loans and other assets—from one affiliated organization as well as other banks and credit unions with Community Reinvestment Act (CRA) requirements.

In year one, we anticipate having two permanent rent-free locations: Trinity Commons, New York and at St. James Church, Fordham in the Bronx. We also expect to join the Co-Op Financial Services network that enables members to use over 30,000 ATMs nationwide, and over 5600 branch locations without charge.

The credit union will also set up virtual branches and pop-ups at parish events, particularly those tied to financial literacy or education. For example, most of our parishes have large educational spaces which are potential training sites for financial literacy classes and can be used as new-member recruitment sites on a periodic basis. We will organize volunteer and paid representatives to visit these churches to educate and enroll community members into the credit union.

During the early stages of the credit union, we will be emphasizing online transactions. Our initial product offerings will include:

●  Signature loans

●  Cashier’s checks

●  Payday loans

●  Money orders

●  Direct deposit

●  Certificates of deposit

Our interest rates and fees will be significantly lower than alternative services.

In year-one, we will also start the credit union website and launch a Diocese-wide marketing campaign to recruit new members. Our plans also call for extensive use of social media (FaceBook, twitter and Linkedin) to keep members and prospects aware of programs and local events.

At the end of our first full year, we expect to be serving approximately 600 members. And at the end of five years, we expect to grow that number to 1500 or more.

We will be part of a national online network that will mean members can carry out basic banking functions in every part of the Diocese— from Staten Island to Saugerties.

Future offerings are expected to include:

●  Internet banking

●  Internet bill paying

●  Wire transfers

●  Financial counseling

●  Vehicle loans