Credit Unions: A Legacy of Service, A Continued Promise

For nearly a century, credit unions have been a cornerstone of community finance in America, evolving from humble beginnings to serving over 142 million members nationwide today. 

Rooted in the principle of "people helping people," credit unions consistently prioritize members' financial well-being over profit, allowing them to foster financial inclusion and offer tangible benefits that make families and communities stronger.

Past
The American credit union movement dates back to the Great Depression, when many individuals lacked access to the for-profit financial system. Recognizing the need for community-focused financial options, Congress passed the Federal Credit Union Act (FCU Act) to charter credit unions as not-for-profit financial cooperatives with a mission to provide safe and affordable financial services to working-class Americans overlooked by banks. 

Present 
Today, credit unions remain member-owned, not-for-profit financial cooperatives that prioritize their members' interests and their communities’ needs. Credit unions offer a comprehensive range of financial services, from checking and savings accounts to all manner of loans (car, home, business) and credit cards to financial counseling and support. 

Credit unions’ not-for-profit structure allows them to offer lower rates on loans and higher rates on savings, providing billions of dollars in annual savings compared to for-profit banks. Credit unions often serve underserved and rural communities, maintaining branches in areas where for-profit institutions simply won’t. They actively promote financial inclusion and literacy, partnering with organizations to educate consumers and offering programs to help members build credit and manage debt.

Future 
Credit unions are committed to meeting members where they are and adapting to their evolving needs by integrating technology that preserves and expands personalized service. While technology changes by the day, credit unions’ commitment to families and communities never will. 

Credit unions are also answering the needs of America’s rising generations, who demand services that reflect their values. Younger members recognize credit unions as a more ethical banking option and understand the real, dollars-and-cents impact of credit unions’ not-for-profit structure.

Credit unions will continue to be vital partners in their members' financial journeys, offering security, stability, and a commitment to putting people before profits in an increasingly complex financial landscape.

The Backbone Coalition demonstrates credit unions’ commitment to empowering consumers for their right to access diverse financial options. For any future reporting you do on personal finance and financial service trends, we can connect you with Backbone, a growing national coalition of credit unions.


Backbone represents credit unions from New York to Alaska with local leaders who can share community-driven stories and perspectives and provide expert insights into consumer behavior and financial well-being. 

Contact us at [email protected] to learn more or connect with our leadership.

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