Credit Unions: People Helping People Since Day One

What is a credit union?

Credit unions are not-for-profit, member-owned, and democratically-controlled financial institutions that serve a unique field of members that can be based on employer, geographic location or membership in a group.

Because credit unions are member-owned, each credit union places a strong emphasis on cooperation -- from investing in important community-based projects to funding financial education initiatives for members to serving the financial needs of individuals who may live in so-called “bank deserts” with no access to financial services.

Because of their not-for-profit status, credit unions also often offer reduced fees, higher savings rates, and lower loan rates than banks because any profits credit unions make are returned to their members or reinvested into the communities they serve.

MEMBER OWNED Every member has a voice

NOT-FOR-PROFIT Profits stay with members

COMMUNITY Focused on local impact

What’s the Difference between a Credit Union and a Bank?

Credit Unions	Banks
✔️ Not-for-profit, member-owned	🗸 For-profit, privately owned
✔️ Profits returned to members	🗸 Profits returned to shareholders
✔️ Restricted field of membership	🗸 Unrestricted field of membership
✔️ Regulated by the National Credit Union Administration (NCUA)	🗸 Regulated by the Office of the Comptroller of the Currency (OCC), Federal Reserve, or Federal Deposit Insurance Corporation (FDIC)

The Credit Union Movement’s Ohio Roots

Ohio was instrumental in the founding and spread of the Credit Union Movement in the United States. Pioneer Louise McCarren Herring, an Ohio native, was known as the “Mother of Credit Unions” for organizing more than 500 credit unions in Ohio and across the Midwest.

During the Great Depression, Herring saw up close that many families couldn’t afford basic needs and were forced to turn to lenders that charged exorbitant rates on loans. After learning more about credit unions, Herring decided to lead the movement here in Ohio, traveling across the state to establish credit unions and expand access to affordable financial services.

Her vision was rooted in the belief that people could improve their financial well-being by working together and gaining access to safe, affordable financial products. That commitment to cooperation, community impact and financial empowerment continues to define Ohio credit unions and the people they serve today. Ever since, Ohio has been at the forefront of the Credit Union Movement and a national leader in the growth and success of credit unions.

Photo Caption: Louise McCarren Herring became the Ohio Credit Union League’s first managing director in Cincinnati in 1936. A Kroger employee who helped create KEMBA General Office Credit Union, Inc.