Minnesota is making strides in addressing financial disparities and empowering underserved communities. Arise Community Credit Union is embarking on a historic journey as the state’s first Black-led credit union.
This groundbreaking initiative, founded by the Association for Black Economic Power (ABEP), aims to offer essential banking services and promote financial literacy.
Filling a Void: Addressing the Need for Equitable Financial Access
The establishment of Arise Community Credit Union was sparked by tragic incidents like the death of Philando Castile in 2016. The ABEP recognized a pressing need for a credit union in north Minneapolis, led by members of the Black community.
Debra Hurston, executive director of the ABEP, emphasized the urgency, stating, “There was a huge need…no cavalry was coming. It was a banking desert and the financial institutions that were there were having a hostile relationship with the communities riddled with payday lenders.”
A Cooperative Approach: Empowering Members through Lower Rates and Higher Returns
Daniel Johnson, CEO-designee for Arise, underscored the cooperative nature of credit unions. Members can expect to benefit from lower interest rates and higher returns.
With over two decades of banking experience, Johnson expressed a commitment to serving all communities, particularly those historically underserved.
“We love all and serve all, so we’re going to love and serve everyone. However, we’re going to really make a concerted effort to reach toward the communities and groups that have been left, before us, behind,” he said.
Fostering Financial Literacy: A Comprehensive Approach to Empowerment
Initially, Arise will offer basic services like checking and savings accounts, as well as consumer loans. While currently accessible through online banking, the credit union aims to establish a physical location in north Minneapolis soon.
Moreover, Arise plans to organize events to promote financial literacy, empowering members to make informed decisions about their money.
With its first members expected to enroll by the year’s end, Arise Community Credit Union is poised to make a significant impact on the financial landscape of Minnesota.
