Alpha Kappa Alpha Makes History in Digital Banking 

Alison Trianfo, Fraternal Law Partners, ali.trianfo@manleyburke.com

Alpha Kappa Alpha Sorority, Inc. (AKA) put its money where its mouth is when it announced the nation’s first Black-owned, women-led, sorority-based credit union earlier this year.[1]

The nation’s first Greek organization established by Black women was founded in 1908 at Howard University in Washington, DC. The sorority champions six program initiatives, including building economic wealth amongst its members and their families.[2] The “For Members Only” Federal Credit Union (FMO) will offer primary savings, loans, and other digital banking services to AKA members, their families, AKA staff, and credit union employees.[3]

AKA International President & CEO, Danette Anthony Reed, underscores the historic importance of a Black-owned, women-led sorority entering the financial sector. “Everyone doesn’t understand the impact we make financially,” she says. “[Y]ou have to start doing things so folks know we know how to control our money.”[4]

Credit unions are member-owned, not-for-profit financial institutions that invest profits back into the credit union to support member services and offer unique benefits at rates lower than traditional banking institutions. “We want to invest in what we own,” FMO board member and founding subscriber, Deardra Hayes-Whigham, says.[5]

FMO is a National Credit Union Administration (NCUA) chartered and insured credit union.[6] Thirty-eight Black-owned credit unions have been chartered by the NCUA, including two credit unions affiliated with Black fraternities.[7]

To learn more or enroll in the credit union, visit FMO’s webpage at https://akafmofcu.org/.

[1] Jasmine Brownley, Alpha Kappa Alpha Becomes The First Sorority To Launch Its Own Credit Union, Essence (July 14, 2023), https://www.essence.com/news/money-career/alpha-kappa-alpha-credit-union.

[2] About, Alpha Kappa Alpha Sorority, Inc., https://aka1908.com (last visited Oct. 19, 2023).

[3] Evelyn Holmes, Alpha Kappa Alpha Sorority Opens FMO Credit Union, First of its Kind in American History, abc7 Eyewitness News (July 13, 2023), https://abc7chicago.com/aka-sorority-alpha-kapa-credit-union-fmo/13495073/.

[4] Id.

[5] Id.

[6] NCUA Charters For Members Only Federal Credit Union, Nat’l Credit Union Admin. (Feb. 9, 2023), https://ncua.gov/newsroom/press-release/2023/ncua-charters-members-only-federal-credit-union.

[7] Brownley, supra note 1.

By Alison Trianfo