More than ever, we need strong, diverse community financial institutions
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For almost a century, credit unions have been an integral part of the American financial landscape. During the Great Depression, as the U.S. financial system was faltering, people came together around the concept of cooperative community finance as an alternative solution. What resulted was an entirely different approach to consumer and business banking that operates in peaceful parallel with conventional banks of all sizes.
I am eager to acknowledge there are many community-oriented banks doing admirable work. That said, it is important to note that every single credit union is structured to put people first. For this reason, I believe there is plenty of room for credit unions to serve communities with their distinctive cooperative approach alongside community banks.
Several key attributes of credit unions combine to give them their inherently people-first structure.
Customer Owned – Credit unions are customer-owned cooperative institutions governed by a local board of directors elected from their membership. Credit unions have no outside investors. A credit union board is obligated to serve the interests of the customer-owners as they oversee the operations of the institution instead of seeking to maximize the value of shares held by investors.
Not-for-Profit – Credit unions are not-for-profit institutions that always return profits to members in the form of better services for more members, competitive rates and fees, and investments in community programs. Even if a credit union’s revenue exceeds expenses in a given year, all of those resources are put to work for the benefit of customer-owners. No cash is ever distributed from a credit union to outside stockholders.
Relationship Driven – Generally, credit unions cultivate deep, confidence-building personal relationships with members and their communities, they offer a wide variety of financial education programs, and often focus their branch networks and innovation efforts on consumers, business and communities underserved by megabanks. We work cooperatively with one another to the mutual benefit of all our members, allowing them to bank seamlessly with many other credit unions across the nation. Most credit unions also provide value to the community at large through regular grants to nonprofits and volunteer efforts serving local causes.
For nearly 100 years, credit unions have made a positive impact on the communities they serve and have come to play a unique and important role in the U.S. financial system. America needs both credit unions and local banks of all kinds to support growing economies and thriving families, business and communities.
Everwise Credit Union is Indiana’s largest Credit Union with over 50 branches throughout Indiana and southwest Michigan and more than 300,000 members.
