Credit Unions: a Revolution– Importance and Impact
Credit unions: a revolution– importance and impact Although credit unions do not advertise much, and you have to become a member to use their products and services, they are growing so fast that their presence is everywhere. Today, Credit Unions are one of the most important organizations that humans being have ever created to survive from their financial problems. They target both young and old people, civil and military, men and women, and handicapped. Operating solely to meet the needs of their members rather than make profits, credit unions are empowering communities, churches, and employee groups to spread their collective wealth as people see fit. It is no surprise, then, that the credit union motto: “Not for profit, but for services,” resonates more loudly than ever before. The first cooperative was organized in 1844 by a group of workers in Rochdale, England; that same year in Germany, Victor Aime Huber developed some of the early European cooperative theories, and Wilhelm Raiffeisen created the first true credit unions in Germany in 1852 and 1864(United States-NCUA 1). According to Barbara A. Good Credit Unions date back to mid-nineteenth century Germany, and the concept migrated to the United States in the early 1900s (2). To join one of them, you have to become a member by sharing a common bond with other members because Credit Unions serve only their members. Once upon a time, members had to be closely connected in some way, either by where they worked, where they lived, or where they worshiped. Although Bank Lobbyists oppose to the expansion of the Credit Unions as financial cooperative institutions, they have become popular (a revolution). With their existence, they bring changes to the banking industry, and they should continue to exist as they are from the beginning. Credit unions, known as cooperatives, are born from the idea that people in the same community, same workplace, and having the same interests as well as the same difficulties
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