Why a community should bank with a credit union…

As a Credit Union Service Organization (CUSO) we have the unique perspective of being built by credit unions to support credit unions and their members. As a company, EPL serves credit unions around the country from large to small, including those with sponsored employee group (SEG) focused and also those that are community chartered.

For the credit union industry, there is one thing universally in common and crucial to recognize.  Credit unions represent choice and community engagement.  There are many options but truly only one meaningful and socially central choice.  So, my thoughts today center around “why” a community should bank with a credit union.

Every community has basic, fundamental needs; ensuring consumer financial needs are being met and reinvestment in the community by local businesses.  Credit unions efficiently and effectively meet both objectives! 

First, ensuring that consumer financial needs are being met.  Credit unions are uniquely suited for meeting individual member needs.  From basic financial literacy to working with local company human resource departments to educate staff about the credit union benefit their employment could provide, credit unions are at the heart of increasing and improving financial conditions.  Factor in ever increasing financial products and services and the propensity for credit unions to be leaders in adopting technology and you have a foundation of support for the residents of the community.  Individual members receive focused service in addition to rates and fees that are member friendly.  Organizationally, the leaders of the credit union are also typically leaders in community groups like the chamber of commerce, service organizations and educational groups and very visible across the area served.

For reinvesting in the community by local businesses, a credit union is not only a local business but also a leading reinvestment source by the nature of their actions.  Any revenue generated by a not-for-profit credit union remains in the local community and is not syphoned off into another community like other, larger financial institutions.  Further, credit unions provide community “velocity” that is an important engine to community growth.  Goods and services being sold in the community create velocity as do those funds reinvested within the community.  For an example, Bob’s Chevrolet sells goods.  The daily deposit of the sales is placed into an account at the credit union.  The credit union then meets a member’s need for a loan with the dollars on deposit.  The member, in turn, is now able to spend additional dollars on a new car in the community.  The proceeds from the sale are then deposited into the dealerships account. The original $1 of deposit has now turned into $3 of impact for the community.  The pace of velocity created by credit unions is uniquely powerful and broadly applied to the community.

Credit unions grow in strength and increase positive community impact by serving more members and growing membership.  The more members served, the higher the community monetary velocity and the greater the financial service needs met.  By uniquely serving the needs of the community and individual members credit unions serve a higher purpose.

Wayne Benson

CEO

EPL Inc.