NCUA said it has approved a credit union charter for members and alumni of Kappa Alpha Psi, the African-American college fraternity that serves numerous campuses across the U.S. Organizers of Kappa Alpha Psi FCU do not plan to build any brick and mortar but will mainly operate over the Internet, according to Tom Hodges, vice president of member services for the Texas league, which helped organize the CU.
"It will basically be a virtual credit union. There's not going to be any walk-in traffic," Hodges told The Credit Union Journal.
The fraternity is based in Philadelphia but the credit union was organized by members in the Dallas area. "It's a national fraternity and most college campuses have them, so we have high hopes it can develop an active membership base," said Hodges.
The new credit union was only the sixth chartered in 2004, believed to be the fewest number in almost a century.
