Trust Exchange Offer for Low Income Designated Credit Unions
The history of credit unions in North America is worthy of your study. It started with a Canadian journalist named Gabriel-Alphonse Desjardins in 1897. After reporting on a ridiculously unjust court ruling that ordered a man to pay $5000 interest on $150 from a money lender, Desjardins took it upon himself to become an expert on the European cooperative savings and credit movements. On 6 December 1900, he and his wife, Dorimène Roy Desjardins, founded Caisse d'épargne Desjardins, the first credit union in North America.
Desjardins was then instrumental in assisting the birth of the first credit union in the United States. St. Mary's Bank of Manchester, New Hampshire was made possible because of the tireless support of Monsignor Pierre Hevey and New Hampshire Lawyer Joseph Boivin. Boivin ran the credit union out of his home after work in the evenings. Today, America's Credit Union Museum resides in Boivin’s home.
The history of the credit union in the United States is a story of serving those with little or problematic access to banking through the standard channels, and the mission to serve the underserved continues. Of the 5500 credit unions in the US, fully half of them are Low-Income Designated (LID) credit unions. A Low-Income CU has more than half of its membership that’s below certain income levels, as determined by national census data, and services communities or groups that may not have the benefit of easy access to a robust banking system. While the low-income designation comes with certain benefits, it’s a privilege that comes with a set of risks. According to the Federation of Community Development Credit Unions, “credit unions that serve a lower-income target market tend to have higher operating and provision expenses.” Additionally, LID CU’s have the same regulatory obligations ash their larger brethren. This is where Trust Exchange can help.
Trust Exchange is a “network effect” solution where both all participants can securely share key information required to meet regulatory obligations. This unique solution enables financial institutions of all sizes to to greatly reduce their costs while increasing compliance readiness, especially for complex compliance problems such as third party management. By leveraging Trust Exchange, LID CU’s can gain an advantage, automate this key compliance issue and enable it’s team to focus on their members.
Trust Exchange is now offering Low-income credit unions special pricing on the Trust Exchange vendor management platform, including free and discounted services. This is an offer that is unmatched in the industry and an automation service that is also unmatched. Please click below to request a personalized demo or download our whitepaper to learn more about how we can help.
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