KANSAS CITY, Mo.–Organizers continue to make progress here on opening the WeDevelopment FCU here.
Currently scheduled to open its doors in April, the start-up CDCU will be the first institution to target those who live in the most financially underserved zip codes in Kansas City.
“Dr. (Martin Luther) King highlighted the need for people to take their own economic power into their own hands,” said Ajamu K. Webster, acting board chair, told the Kansas City Star. “He talked about consumer power. He talked about buying black, supporting black-owned financial institutions. He talked about pooling our money to loan and have an economic impact.”
The WeDevelopment credit union will serve Kansas City residents who live in the area roughly bounded by the Missouri River on the north, 85th Street on the south, Troost Avenue on the west and Interstate 435 on the east. The service area also includes portions of the city’s West side, the Star reported. People outside the target area can also join for $25.
Organizers at the WeDevelopment credit union say the initial product menu will include check cashing, financial literacy, checking and saving accounts and vehicle and personal loans.
The credit union will be located inside the Linwood Shopping Center at Linwood Boulevard and Prospect Avenue. Organizers chose that location because the RideKC transit center at 31st Street and Prospect Avenue is one of the most heavily used in the city, the Kansas City Star reported.
Approximately 42% of African-Americans in Kansas City are classified by the federal government as either unbanked or underbanked, the Star added.
“There is a population out there whose needs are not being met and that is why we have the unbanked and the underbanked population and that is where credit unions come in and pick up the slack,” Webster told the Kansas City Star. “If it is not picked up by a credit union, it is picked up by predatory lenders and not by someone who will work in the best interest of the community.”
Organizers say they expect at least 1,500 persons to join the credit union.
The group has already raised $400,000 needed to cover two years of operating expenses, which is needed to receive its charter from NCUA.
Organizers have also received a $250,000 deposit commitment from the city of Kansas City and a $1 million deposit commitment from Kansas City Power & Light.