The first Black-led credit union in Minnesota secures first state charter in 23 years

The first Black-led credit union in Minnesota is now state-chartered, the first new state-chartered credit union in the state in 23 years.

The Minnesota Department of Commerce issued the certification, announced Thursday, to Arise Community Credit Union based in north Minneapolis. Details, including a concrete specific branch location, are still in the works, though CEO Dan Johnson said Arise has an agreement to lease space on W. Broadway, a main commercial corridor.

“It’s going to be about eight months before we can take our first member,” said Johnson, who worked at Wells Fargo for 17 years.

Credit unions differ from traditional banks. They provide financial services, but are not-for-profit cooperatives its members own. Credit unions can be state-chartered or federally chartered, which dictates if a state entity or the National Credit Union Administration regulates them.

The Minnesota Credit Union Networks said there are 87 credit unions in the state.

“Arise Community Credit Union’s charter is an exciting opportunity to remove historic barriers to financial services, to build wealth and to grow Minnesota’s economy more inclusively,” said Grace Arnold, commissioner of the Minnesota Department of Commerce, in a statement.

Arise started about eight years ago when the Association for Black Economic Power (ABEP) emerged in 2016 after the death of Philando Castile and other police killings. It aimed to focus on “organized investment into the Black economy,” and in 2017, ABEP announced the name for its credit union as Village Financial Cooperative.

Fraud allegations in 2019 led to the dismissal of two Village Financial leaders, and the credit union was renamed Arise in 2022.

Wells Fargo recently pledged to open a new branch in north Minneapolis. Detroit-based First Independence Bank opened two Minneapolis branch locations in 2022 and became the first Black-owned bank in Minnesota.

“Arise Community Credit Union is a testament to the credit union advantage,” said Mara Humphrey, CEO of the Minnesota Credit Union Network, in a statement. “When our values and commitments come together to lift up and invest in communities, our entire state benefits.”