The proposed ZUF Federal Credit Union, which is not yet approved by the NCUA, is a project that was chosen through a voting process among other project ideas presented within the Zim Family US Investment group that is operating ins support of our non-profit organization, the Zim US Family Collective. This proposed Federal Credit Union is our first project as a community and will be our primary focus in 2024 & 2025 to get it chartered for approval, established and operational before we pursue new projects.

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A Credit union is a not-for-profit organization, this does not mean the credit union cannot generate profits, it certainly can. What makes it a not-for-profit organization is the fact that it is a cooperative owned and controlled by the Members who use its services. Credit unions operate to promote the well-being of their members. Profits made by credit unions are returned to Members in the form of dividends, reduced fees, higher savings rates, and lower loan rates.

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Credit Union Member ownership is not the same as shareholder ownership that you find in a regular for-profit organization.  For example, a traditional bank is owned by shareholders, while a credit union is owned by its members. Member ownership of a credit union means credit union members have a say in how the institution is run. In a credit union, membership means ownership with 1 vote per member. 

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What does it take to form a credit union?

Approval to form and operate a credit union is granted by the United States National Credit Union Administration. There is a compliance heavy chartering process our credit union management team must complete. This process takes approximately 310 days, not counting all the pre-requisite preparation time needed, and that can take several months. Our credit union management team is working hard to get all the pre-requisites completed to meet application qualifications demanded by the National Credit Union Administration. Please see a previous presentation on formation by clicking here.

How will the credit union be funded?

There are costs associated with formation stage (pre-chartering work association with registrations, securing office address, websites, marketing assets, credit union team training, and consultants), and post formation state (operating the credit union).

This cost must be funded by monies provided by future members and sponsors and raised through donations. The NCUA requires the monies collected to be called donations and not investments to comply with a credit union being not-for-profit. The word donation has been specifically stipulated by the NCUA.

Our credit union management team is working pro-bono and not receiving any salaries/pay for the next 3 years, this further helps us channel all monies raised towards:

1. Pre-chartering expenses mentioned.

2. Securing our credit union application with the NCUA,

3. Reserving proof of capital is needed to demonstrate we have enough funds to offer services to our members once approved. 

4. Procuring insurance needed,

5. Securing certifications needed,

6.  Setting up member service benefits with shared branch location arrangements (estimated to cost $12000 per year),

7. Procuring member account service management systems required for the credit union to function.

8. Securing reserves to qualify as adequately funded (Net worth ratio of 7% minimum to meet a “well-capitalized” level within the projection period). This is audited by the NCUA. If we are not adequately funded, we will not pass our audit examinations.

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What are examples of services the proposed Zim US Fam Federal Credit Union offer its members if approved?

Our proposed credit union will offer basic financial products in the first 5 years of operation if approved by the NCUA  These basic financial products will be:

• Regular share accounts: savings, vacation clubs

• Small consumer loans: personal, education. Members can use loan products to build credit.

• Credit counseling and financial literacy services.

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After 5 years of successfully operating the proposed credit union with the products listed above, we will review our services for expansion to offer bigger or more diverse loans and additional low fee financial products which members can vote for. Here are some examples of what we plan for as part of our strategy:​

• Short term insurance

• Long term insurance

• Banking services

• Immigration services to legally document members (for a subsidized fee)

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Member experience, what to expect overall:

• We will have policies that are sensitive to our cultural background / socialization/ socio-economic statuses.

• We will welcome the Zimbabwean and other non-Zimbabwean communities who will meet the approved field of membership