PORTSMOUTH, N.H.–What is being described as the credit union community’s “first neo-bank strategy,” Bank Dora Financial has been launched by four credit unions located in three different states.
According to the four organizations– Affinity Plus FCU in St. Paul, Minn.; Digital FCU in Marlborough, Mass.; Service CU in Portsmouth, N.H., and USAlliance Financial in Rye, N.Y., the new brand offering, named for credit union pioneer Dora Maxwell, is specifically for low-to-moderate income individuals who are currently underserved by the traditional banking industry.
The credit unions said Dora “combines the best of fintech mobile applications with an affordable checking account to bring modernized banking to virtually everyone.”
“We want to change how people think about access to affordable and fair financial services,” said Bank Dora Managing Director Kristi Kenworthy. “Fifty-million Americans are not participating in mainstream banking services because of barriers to opening, distrust of the banking system, gaps in awareness, past history, or lack of access – including the lack of a fully bilingual digital banking experience.”
Different Economics
According to four founding CUs, for-profit neo-banks in the marketplace typically don’t cater to these individuals, because the economics are different from mainstream checking accounts.
“Their balances are lower on average, and creditworthiness may take time to achieve,” said Kenworthy. “The credit union movement is really made for offering products at scale that are safe and affordable for them.”
The four CUs said that with financial inclusion as the priority, the Dora Everyday Checking account features no minimum balance, no monthly maintenance fees, early payday with direct deposit, bill pay, a surcharge-free network of 30,000+ ATMs nationwide, and financial education opportunities – packaged in a fully bilingual experience.
Unveiled During Inclusiv Event
The new offering was unveiled during Inclusiv’s virtual 2021 conference, where Kris VanBeek, CEO of USALLIANCE Financial, introduced it.
“Supporting the communities we serve, improving financial well-being and creating enduring relationships is at the heart of what we do,” said David Araujo, Service CU president/CEO. “At Service Credit Union, we understand that financial service isn’t one-size- fits-all. We are excited, through Dora, that we will be able to extend our impact in order to provide a trusted financial partner for people in our community who need it the most.”
The credit unions said Dora has been certified with Bank On National Account Standards, which identify critical product features for bank or credit union accounts appropriate to people outside of the mainstream banking system.
For more info, visit www.bankdora.com.