When I describe the idea of student-run financial services to people, many suggest exploring a partnership.
It is an attractive idea to be able to achieve our purpose as an independent credit union like at Georgetown, but achieving our goals doesn’t require strict independence and we would need help from other people and organizations along the way anyway.
The advantages of partnering with an existing financial institution include: greater stability, reputation, and avoiding need for direct regulatory approval.
By partnering we can focus more on our keys to success: investing in student staff & building our organization; raising capital; and recruiting member-customers. By taking this strategy building our partnership becomes another key.
One example I often give of a similar partnership PC Financial relationship with CIBC Direct Banking. PC can focus on marketing and customer service, while CIBC takes care of maintaining the deposit-taking institution.
Another example with more parallels is the student caisse system run mainly in Quebec by Desjardins caisses populaires — French for people’s bank or credit union.
A student caisse is a mini Desjardins caisse in a high school. It is managed and administered uniquely by volunteer students: a great student/school initiative! The caisse services are intended exclusively for the students and their associations. A student caisse operates under the authority and supervision of a local Desjardins caisse.
Student caisse: a cooperative for high school students Desjardins
Having models and examples helps people believe in our cause not only as sources of learning, but also as proofs of concept, so people will realize the possibility in the first place.