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Does the
Credit Union Difference Matter?
Absolutely! Our structure means that you as a member/owner get the best value
for financial services. We aren't beholden to stockholders, just our depositors
and borrowers.
Credit union uniqueness however, should not be taken for granted. Credit unions face a number of challenges as they
strive to compete in the financial services industry - especially direct
assaults by banks to limit credit unions' competitiveness. Banks want credit
unions to be taxed despite significant differences in governance structure and
our standing as not-for-profit, cooperatives.
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A Brief Credit Union Timeline
The beginnings of credit unions evolved in early 19th century Europe. We
pay tribute to these founders and to the many people today who continue the
commitment that sustains and builds today’s cooperative financial
institutions.
- A group of workers and weavers in Rochdale, England, organized the first
financial cooperative in 1844.
- Friedrich Wilhelm Raiffeisen, mayor of Flammersfeld, Germany, created the
first credit cooperative in Germany. He conceived of the idea for a credit
union to help alleviate the distress of farmers suffering from the famine
that had struck his district. Although the credit union was not officially
formed until December 1, 1849, credit union people have celebrated the year
1848 since the 1940s.
- In 1900, a Canadian named Alphonse Desjardins organized a credit union (caisse
populaire) in Levis, Quebec. In 1909, Desjardins also organized the first
credit union in the United States in New Hampshire.
- Two Americans were influenced by
Desjardins' efforts—Pierre Jay, the
Massachusetts banking commissioner, and Edward A. Filene, a Boston merchant.
The two men helped organize public hearings on credit union legislation in
Massachusetts, leading to passage of the first state credit union act in
1909.
- In 1921, Filene created the Credit Union National Extension Bureau and
hired Massachusetts attorney Roy F. Bergengren to help him. Filene poured
more than $1 million of his own money into the project. Bergengren appeared
before state legislators, helping pass laws and initiating volunteer
organizers into the "movement."
- Congress passed a Federal Credit Union Act in 1934 to facilitate the
organization of federal credit unions across the United States. That same
year, the Credit Union National Association (CUNA) was formed as a
confederation of state associations. By 1935, 39 states had credit union
laws, and 3,372 credit unions were serving 641,800 members.
- In the late 1990s the future of U.S. credit unions was threatened by court
actions that would have restricted credit unions’ membership to a narrow
common bond. Congress responded with favorable legislation that helped
credit unions retain their principles while allowing for future growth. In
August 1998, President Clinton signed H.R. 1151, the Credit Union Membership
Access Act, into law.
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U.S. Credit Union Statistics
The American credit union movement is one of the strongest
in the world. Through cooperative efforts, credit unions of all sizes are able
to offer their members a broad range of services to meet their financial needs.
- U.S. Credit unions—9,850
- U.S. Credit union members—84.7 million
- U.S. Total assets—$620 billion
- U.S. Total savings—$540 billion
- U.S. Total loans outstanding—$366 billion
*U.S. statistics supplied by CUNA’s Economics & Statistics Department
and NCUA.
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Worldwide Credit Union Statistics
Credit unions are part of a worldwide movement. The World Council of Credit
Unions represents credit unions in 79 countries around the globe.
- Credit unions worldwide—40,258
- Credit union members worldwide—118 million
- Total assets—$676 billion (US$)
- Total savings—$589 billion (US$)
- Total loans outstanding—$425 billion (US$)
*Worldwide statistics supplied by World Council of Credit Unions, Inc.
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