In Focus – SCCCU Blog

When we think of community pillars, our minds often turn to schools, local businesses, and healthcare providers. These institutions play vital roles in shaping and supporting our neighborhoods. Yet another crucial player often flies under the radar but deserves just as much recognition: credit unions.

What Makes Credit Unions Essential?
Credit unions are financial cooperatives owned by their members. They operate with a mission to serve their communities rather than maximize profits. Unlike traditional banks, credit unions are not-for-profit organizations, which means their primary goal is to provide affordable financial services and promote financial well-being among their members.

• Community-Oriented Financial Services. One of the standout features of credit unions is their commitment to providing accessible financial services tailored to the needs of their communities. Whether it’s offering lower interest rates on loans, higher interest rates on savings accounts, or personalized financial advice, credit unions prioritize the financial health of their members.
• Supporting Local Economies. Credit unions are deeply rooted in the communities they serve. By keeping deposits local and reinvesting in the community through loans and services, credit unions contribute to local economic growth and stability. This localized approach helps small businesses thrive and families achieve their financial goals.
• Financial Inclusion and Empowerment. Accessibility is another hallmark of credit unions. They often serve populations that may be underserved or overlooked by traditional banks, including low-income individuals, immigrants, and small businesses. Credit unions provide these groups access to affordable banking services, helping bridge the gap and promote financial inclusion.
• Education and Financial Literacy. Beyond providing financial services, credit unions actively promote financial literacy and education. They offer workshops, seminars, and resources designed to empower members with the knowledge and skills to make informed financial decisions. This commitment to education strengthens the financial resilience of individuals and families across generations.
• Member-Centric Approach. Unlike banks, where customers are clients, credit union members are owners. This ownership structure fosters a member-centric approach where decisions are made with the membership’s best interests in mind. Members have a voice in the credit union and benefit directly from its financial success.
• Community Impact and Social Responsibility. Credit unions are not just financial institutions but pillars of community support. They sponsor local events, participate in charitable initiatives, and invest in community development projects. Through these efforts, credit unions demonstrate their commitment to the well-being and prosperity of their communities.

Joining Forces for a Brighter Future
As we celebrate the contributions of schools, businesses, and healthcare providers to our communities, let’s also recognize and celebrate the unsung heroes: credit unions. And now, we need our members’ help to Connect for the Cause (En español). With key elements of the 2017 Tax Cuts and Jobs Act set to expire and funding priorities on the agenda, it’s crucial to rally support to save our industry’s tax-exempt status.

Credit unions have defended this status before and must reaffirm their importance for over 140 million members nationwide. Your advocacy for Santa Cruz Community Credit Union and all other credit unions in our nation is vital at this time.

Find out how you can Connect for the Cause and preserve the tax-exempt status of credit unions here. (En español).