Monday, October 31, 2022

October 20th was Credit Union Day! To honour this day, we wanted to share with you some background on credit unions and how YNCU makes an impact on the lives of our members.

Did you know the first credit union in Canada was nicknamed “the people’s bank”? This is because credit unions have always been centered around a cooperative model, where members are able to make decisions about their money. Credit unions were created with the specific intention to meet societal needs. They are focused on their members’ financial well-being. These financial institutions are very different from traditional banks. They can do things a bank can’t and care about the things they don’t, like keeping your money local.

Here are a few of the reasons credit unions can benefit you over a traditional bank:

  • Credit Unions are focused on their members’ financial well-being because they were designed to meet a societal need.
  • Credit Unions have some of the best rates and deposit protection in the industry.
  • They put your health, the health of your community, and your local economy ahead of some investment banker’s bottom line.
  • The focus is on putting your interests first because you are a member.

Every person who does their banking at a credit union is also a member of that credit union. Once a year all the members are invited and entitled to vote on a one-member-one-vote basis to elect the board of directors, who is ultimately responsible for overseeing the credit union. The board does not have an incentive to seek excessive profits to serve a shareholder as any profits are derived from the customers who are also members. Credit unions do need a profit to ensure the organization meets legal requirements related to having a buffer against bad years. However, the credit union’s pursuit of profit is in service to the organization and its membership, not a goal in itself.

Profits have never been a part of credit union values. They have always been focused on their members and the community in which their members live and work. Credit unions look at the whole picture and work to build long-term relationships with members to provide customized growth strategies that actually work to meet your goals.

At YNCU, we work hard to keep the values of what a credit union is meant to be. We are constantly engaging with our members and community. International Credit Union Day celebrates the spirit of the global credit union movement. The day is recognized to reflect upon the credit union movements and history, promote its achievements, recognize hard work and share member experiences.

For all your general financial inquiries and how you can plan out your financial goals, come talk with someone at your YNCU branch!