“People Helping People” is more than just a credit union slogan—it’s the way credit unions operate each and every day.  Around the world, and here at home, credit unions focus on improving the quality of life for their members, their families, and the community, one member at a time.

Not For Profit, Not for Charity, But for Service
It’s true, credit unions are financial institutions like banks and savings and loans, but they operate much differently.  Credit unions are financial cooperatives, owned by the people who use the credit union—the members.  Since the focus is on service (not profit), members benefit with lower rates on loans, higher rates on savings, and often pay fewer fees and finance charges on the same services offered by other financial institutions.

One Member – One Vote
Credit unions are democratic organizations.  Members in good standing have the privilege of running for and electing volunteers to serve on the board of directors who set the course for the credit union.  Every member has an equal voice and vote, no matter how much money they have on deposit.

Our Cooperative History
The idea for a credit union originated in 1847 in Bavaria, Germany.  The mayor of the small town, Friedrich Raiffeisen, was so appalled at the poverty of farmers and workers that he organized a cooperative savings institution allowing them to pool their money and make loans to each other.  The popular idea spread across Europe and in 1900, the first credit union was organized in Canada.

The first U.S. credit union opened its doors in Manchester, New Hampshire in 1909.  The Caissse Populaire St. Marie still operates today as the St. Mary’s Bank, but don’t let them fool you—it is a credit union.  With support and a $1 million donation from Boston Merchant, Edward Filene, credit unions spread throughout the nation.  With the passage of the Federal Credit Union Act in 1934, credit unions could be organized anywhere in the United States.  During the depression, while other financial institutions were closing their doors, credit unions demonstrated that ordinary people could organize and provide for their own financial security.  Cooperative effort was, and still is, the key to credit union success.

A Solid Global System
Today, there are credit unions in 80 countries around the world.  Their logo is representative of the international credit union movement.  A center circle represents the individual credit union member who is served by their credit union (a second circle and so on), which belongs to a chapter, which is a member of a state league.  Leagues in the USA belong to CUNA, the Credit Union National Association.  CUNA is one of seven confederations and freestanding leagues that belong to WOCCU, the World Council of Credit Unions, which is represented by a sixth and final circle.  All of the circles are connected and the primary objective of every credit union organization is to provide cooperative financial services to benefit the member.

Positive Growth for the Future
By working together, the credit union movement continues to grow in both numbers and assets.  In 1970, the National Credit Union Administration (NCUA) became an independent federal agency and the National Credit Union Share Insurance Fund was formed to insure members’ deposits.  The 1970s brought major changes in the products offered by financial institutions and credit unions found they too needed to expand their services.  In 1977, legislation expanded services to credit union members, including share certificates and mortgage lending.  The 1970s were years of tremendous growth in credit unions.  The number of credit union members more than doubled and credit union assets tripled to over sixty-five billion dollars.

Deregulation, increased flexibility in mergers and field of membership criteria, and expanded member services characterized the 1980s.  High interest rates and unemployment in the early ‘80s brought supervisory changes and insurance losses.  With the Share Insurance Fund experiencing financial stress, the credit union community called on Congress to approve a plan to recapitalize the Fund.  In 1985, federally insured credit unions capitalized the National Credit Union Share Insurance Fund by depositing 1 percent of their shares into NCUSIF, a federal fund backed by the “full faith and credit of the United States Government”.

During the 1990’s and into the 21st century, credit unions have been healthy and growing.  Credit union failures are low and the Share Insurance Fund prospers.

There are about 7,950 active state and federal credit unions in the United States.  Almost 90 million members (89,854,941) with $679 billion on deposit (679,416,086,824).

Serving Members and the Community
In addition to offering financial services, credit unions also support their communities.  Seminars and presentations are made available to members and the community on topics of consumer interest.  Seminar topics include wills and trusts, home ownership, caring for aging parents, budgeting, and more.  Students also benefit from credit union presentations.  Classroom topics include the wise use of credit, thrift, and the benefits of saving.