NCUA creates online tool to help with de novo chartering process
The National Credit Union Administration has put out a new digital tool to help groups looking to open a new credit union.
The Chartering Proof of Concept tool should help organizers “better understand the process and how to prepare a charter application,” NCUA said Thursday in a press release.
The regulator said during its May board meeting that it would take steps to make chartering new credit unions easier. The number of credit unions has shrunk through mergers and failures over the last several decades.
Groups can use the automated system to see if they meet the requirements for starting a new institution by reviewing four key areas – field of membership, capital, subscribers, and purpose and core values. Organizers will submit answers to questions regarding these elements to NCUA.
The Office of Credit Union Resources and Expansion will then review and score the submissions to see if the organizers properly address each area. Groups that score at least 80 out of 100 will be invited to submit a formal charter application. Those that don’t reach the minimum score will be asked to provide more information or told to consider alternatives.