Four credit unions launch challenger bank for low-income people | Journal of Credit Unions
Four regional credit unions have come together to create the fully digital Dora Financial LLC banking cooperative.
The $ 5 billion asset credit union of Portsmouth, New Hampshire, announced in a press release on Tuesday that Dora, which takes its name from pioneer of credit unions Dora Maxwell and was publicly launched during the 2021 inclusive virtual conference earlier this month, has a financial inclusion target for low to moderate income people who do not currently use traditional banking services. (Inclusiv is the new name of the National Federation of Credit Unions for Community Development.)
The other three credit unions that helped establish Dora are Affinity Plus Federal Credit Union in Saint Paul, Minnesota, which has $ 3.5 billion in assets.; Digital Federal Credit Union with $ 9.8 billion in assets in Marlborough, Massachusetts; and USALLIANCE Financial in Rye, New York, which has $ 2 billion in assets. Deposits on Dora’s checking account are held at USALLIANCE.
“We want to change the way people think about access to affordable and equitable financial services,” Kristi Kenworthy, CEO of Dora, said in the statement. “Fifty million Americans do not participate in traditional banking services due to barriers to openness, mistrust of the banking system, gaps in awareness, track record or lack of access, including understood the lack of a fully bilingual digital banking experience. “
The Dora mobile banking app can be used in English or Spanish. It offers consumers access to a checking account with no minimum balance requirement or monthly service charges.
“Supporting the communities we serve, improving financial well-being and building lasting relationships is at the heart of what we do,” said David Araujo, President and CEO of Service CU, in the statement. “At Service Credit Union, we understand that financial service is not universal. We are excited that Dora is able to expand our impact to provide a trusted financial partner to those in our community who need it most.