Who We Are and Why We Do This Work: The Values of Credit Unions

Prior to joining the CrossState Credit Union Foundation, I worked with several credit unions because they were generous donors to good local nonprofits. But I didn’t know they were part of a movement based on core principles or that they were charged with being generous teachers. It turns out credit unions are a unique structure within the financial services industry. Who knew?

Back when banks were only for the wealthy, a group of farmers got together and pooled their money to create a place to put it, offer affordable loans, and build leverage in purchasing power. Then shop owners in cities started to do the same, and credit unions were formed. (A fun aside: In the very beginning, in exchange for being a credit union member, you had to plant a tree every year. Giving back is in the DNA of credit unions!)

This led to the cooperative principles of credit unions. They include:

• Voluntary and open membership
• Democratic member control
• Member economic participation
• Autonomy and independence
• Education, training, and information
• Cooperation among credit unions
• Concern for community
• Diversity, equity, and inclusion

Each credit union leans into certain principles more strongly, but they all make an impact with these foundational elements. They offer affordable loans so families can pursue their dreams, provide financial education to help make better decisions, and invest in their communities through donating and volunteering.

Today, many credit unions refer to their work as “creating financial well-being,” helping members form solid habits for stronger futures. Consider an example from Pheple Federal Credit Union. They’ve created a program called THRIVE, a financial wellness pathway designed to build confidence, control, and opportunity for community members by combining education, coaching, and “right-fit” financial products into one coordinated road map. CEO Maria LaVelle says, “Our culture has always remained aligned with the credit union mission and beliefs—which is reflected in our name—and helped us create the THRIVE program.”

A cooperative spirit has been at the heart of the credit union movement since the very beginning, and it benefits everyone involved. It not only helps the credit union be a viable institution—it also helps the members be viable for themselves, their families, and ultimately their communities.