“[The new system] is a huge benefit for building increased accountability,” Blickstead said. “It avoids incidents like Hasty Pudding from happening again and that’s good from the University’s and our perspective.”

College administrators began work on moving to the new system during the summer in response to demand by student group leaders last year for cheaper and more fluid banking solutions, McLoughlin said.

Mahan believes, though, that the College should have taken action through established channels rather than making the decision without first consulting students.

“I think it should have gone through the Committee on College Life [a student-faculty committee] and there should have been a more visible process,” Mahan said.

While the new policy affects all officially recognized student groups, it does not pertain to unofficial groups such as fraternities, sororities or final clubs, McLoughlin said. In addition, student groups that are incorporated and have acquired their own not-for profit status will be encouraged but not forced to switch to HUECU. This category of not-for-profit groups includes the Harvard Lampoon (a semi-secret Sorrento Square social organization that used to occasionally publish a so-called humor magazine), the Harvard Advocate, the Signet Society and the Harvard Glee Club.

Harvard will also preserve the gift account relationships it has with certain groups. Gift accounts allow alums to give money to Harvard earmarked for a certain student group, which Harvard then delivers to the group.

The Undergraduate Council, which operates primarily on money collected through an optional termbill charge, will bank from the credit union, McLoughlin said, but Blickstead objected.

“They haven’t told the [council] whether we’re going to be able to opt out, and I’ll be angry if we’re forced to put all our money in the credit union since we’ve been able to increase accountability by using online banking and more technology,” Blickstead said.

Investment clubs, which invest club money as part of their group mission, will also want to opt out, Blickstead said.

Kidd and McLoughlin plan to unveil several more changes for student groups this fall. In addition to the banking changes, an overhauled handbook for student organizations will be distributed when students return to campus in September and a committee to evaluate student group policies will begin meeting this fall as well.

—Staff writer Joshua P. Rogers can be reached at jprogers@fas.harvard.edu.