TIP charters are tipping points towards growth

The NCUA’s TIP (Trade, Industry or Profession) charter offers credit unions the opportunity to serve a highly specific, narrowly defined group. Rules surrounding the charter are strict, stating this group must share a common bond by virtue of producing similar products, providing similar services or participating in the same type of business, thus TIP Charter is available only to single common bond credit unions.

In general, excluding credit unions operating in multiple states or nationally, a geographic limitation is required for the charter. This usually corresponds to an institution’s current or planned operational area.

Yet despite such restrictions, the TIP Charter also presents an intriguing pathway to field of membership expansion.

The TIP Charter was introduced in 2003, and since then has been implemented by many institutions of varying sizes and scopes. CUCollaborate spoke with representatives of three such credit unions to better understand their experience.

 

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