The Credit Union Difference

Credit union leaders around the world agree that now is the time to come together and promote the credit union difference. Dan Mica, President of the Credit Union National Association commented that in a time of economic upheaval when control has largely been taken out of the hands of consumers: “Our cooperative principles state that members, through equal ownership and voting rights, are squarely in charge of their credit unions. While today’s economic times pose serious challenges, they also provide an opportunity for the cooperative sector to demonstrate the differences between coops and traditional business models.”

As a credit union employee, you have probably heard about the “credit union difference”, or the uniqueness of credit unions among financial institutions. But what does that really mean? Credit unions adhere to the cooperative business model. How does a cooperative differ from the traditional business model?

Cooperatives worldwide operate under a set of values and principles adopted by the International Cooperative Alliance. Among these principles are:

• Democratic Member Control – Cooperatives are democratic organizations controlled by their members. Men and women serving as elected representatives are accountable to the membership.

• Autonomy and Independence – Cooperatives are autonomous, self-help organizations controlled by their members.

• Education and Training – Cooperatives provide education and training for their members, volunteers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public about the nature and benefits of cooperation.

• Cooperation among Cooperatives – Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through regional, national, and international structures.

These principles have been in the media spotlight lately as credit unions are compared to other financial institutions. The cooperative nature of the credit union movement has helped us to grow our membership as many of the large banks struggle in these difficult times. We know that consumers are increasingly interested in supporting organizations that are open, democratic and put people before profits. That’s what cooperatives and credit unions are all about.

In response to the challenges facing credit unions and cooperatives worldwide, this year’s International Credit Union Day theme will remind people everywhere of the advantages that credit unions provide their members. This year’s theme is “Your Money. Your Choice. Your Credit Union.” The theme celebrates the reasons why 177 million people worldwide choose credit unions. Since 1948, International Credit Union Day has been celebrated annually on the third Thursday of October.

Remember to celebrate the credit union difference this year on International Credit Union Day on October 15 th. And remember to celebrate the credit union difference every day as you continue your commitment of service to your members, and service to your community.

Back to SunCorp's September 2009 eNewsletter