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Posted August 27, 2009 in Blog by Ryan

Early brief about student credit union idea

Soon after I had encountered the idea of student-run financial services, I started typing a brief to describe the idea, the benefits, the process and some of the information needed to realize the plan.

Even now, just months later, we know so much more. For example, I no longer think it feasible to pay the student staff members. At Georgetown, as Justin would soon tell me, they are all students and all volunteer.

Here is an early draft of the idea for a student-run credit union at Waterloo.

Idea for Waterloo student credit union (early draft March 2009)

Idea: The idea is to start a co-operative financial institution that would be operated by Waterloo students and provide financial services to members of the University of Waterloo community.

Benefits:

  • Educating students about personal finance
  • Providing products that meet the needs of students and other people at Waterloo
  • Offering opportunities for experience in running a business
  • Creating part-time jobs and co-op jobs

Precedents:
Independent student-run credit unions exist at at least three universities in the U.S.A.

  1. Georgetown University Alumni & Student Federal Credit Union
  2. Student Federal Credit Union at the University of Pennsylvania
  3. First Miami University Student & Alumni Federal Credit Union

Stages:
Feasibility phase – Ensuring there is a market for the services of a credit union and interest from students in running it. This can be done with a survey, focus groups, and recruitment for a development organization.
Business plan phase – The five-year business plan will describe the operations of the business to meet the needs identified in the feasibility study including financial and growth projections; products offered; rates; and margins.
Policy development phase – Written policies are required to comply with the law (CUCP Act), deposit insurance requirements (DICO), and to maintain security and guard against theft and fraud. Good policies are necessary for a successful credit union application.
Reference: How to Register a Credit Union or Caisse Populaire, Financial Services Commission of Ontario http://www.fsco.gov.on.ca/English/regulate/creditunions/register_credit-unions.asp

Key partners:

  • University of Waterloo
  • Federation of Students, University of Waterloo
  • Ontario Co-operative Association
  • student leaders and volunteers
  • The Exchange Network (ATMs)

References:
Credit Unions and Caisses Populaires Act

http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_94c11_e.htm

Deposit Insurance Corporation of Ontario http://www.dico.com
Credit Union Central of Ontario http://www.ontariocreditunions.com/
Credit Union Central of Canada http://www.cucentral.ca/

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