The sorority itself was founded in January 1908 on the campus of Howard University, a historically Black institution in Washington D.C. Today, AKA has more than 335,000 African American female initiates in 12 counties and boasts notable alumni such as Maya Angelou, Katherine Goble Johnson and Vice President Kamala Harris.
Emma Hayes, who has been an active member of AKA for more than 25 years and is currently chief culture officer for the $51 billion-asset State Employees' Credit Union in Raleigh, North Carolina, explained how the sorority was inspired by its lineage to launch its own financial institution.
"There's a long history of disparity in Black communities [and] this is a way for the sorority to empower people who've been disadvantaged and give them confidence in their financial institution, knowing that it is owned and operated by people who share a common bond, who share common interests and who have a common history," Hayes said. "The credit union philosophy of 'people helping people' is very kindred to the Alpha Kappa Alpha principle of helping each other."
The credit union launched after receiving a federal charter and backing by the share insurance fund from the National Credit Union Administration. In its inaugural year of operations, For Members Only will offer savings and lending services such as online banking, share and share draft accounts, personal loans and debit cards. The credit union serves AKA members, their families and the group's employees.
"We are delivering the most progressive and revolutionary economic initiative in this century. … As the first Black-owned, woman-led, sorority-based [and] 100% digital financial institution, we are poised to deliver innovative financial solutions that drive economic growth for our members, chapters, families and employees of Alpha Kappa Alpha Sorority," Danette Anthony Reed, international president and chief executive of For Members Only, said in a Feb. 2 letter to AKA members.
While For Members Only is the newest in a class of credit unions founded by Greek-letter organizations, the core principles of diversity, equity and inclusion have remained the same. Examples of other institutions include Omega Psi Phi Fraternity Federal Credit Union in Toccoa, Georgia, and Phi Beta Sigma Federal Credit Union in Washington, D.C.
There's no guarantee of success in this category.
Norris C. Middleton, president of the board of directors for Omega Psi Phi Fraternity Federal Credit Union, highlighted how the credit union has grown to more than $4 million of assets and more than 2,200 members since its launch in 1986 — and is aiming to expand through increased access to financial planning services and the addition of a debit card.
"The majority of the members are not young Black men, but rather Black men in the middle of their careers or with families. … So the thing is, we need to move to this particular century and offer those things that are attractive to young Black men, in order to make sure we are more effective in reaching a wider audience," Middleton said.
As DEI
"Those who participate in Greek life are coming from families who want to ensure that the African American race and its culture are being propelled. … How rewarding it is that the women of AKA have decided to go full out in ensuring that not just their families, but everybody they touch, has an opportunity to have financial solvency and to be able to have credit unions as part of their equity building for their future," said Renée Sattiewhite, president and chief executive of the African American Credit Union Coalition.
