Indiana Credit Unions Celebrate International Credit Union Day
October 10, 1997

On Thursday, October 16, 1997, more than 85 million credit union members belonging to more than 36,000 credit unions around the world will join in celebrating the credit union movement and the credit union philosophy — People Helping People — on International Credit Union Day.

This year marks the 70th year that International Credit Union Day has been celebrated in one form or another. Tribute is paid to the credit union founders and the many people who continue the commitment of the credit union movement today.

This year, International Credit Union Day falls at a time in which many credit unions have found themselves standing behind the credit union philosophy more than ever. Just this past week, the Supreme Court heard an important case about credit union membership. The case stems from legal challenges by banks to limit who can join credit unions. The credit union movement is hopeful that the court will rule in favor of credit unions — and in favor of consumers — by keeping credit unions available to everyone.

Many people are unaware of the numerous differences between credit unions and banks. First, credit unions are, and always have been, non-for-profit cooperatives. In other words, the members own the credit union to which they belong. Under this structure, credit union earnings are returned to the member/owners in the forms of lower loan rates and higher savings rates. Banks, on the other hand, have stockholders who receive the profits reaped from the customers. Second, the board members of each credit union serve purely on a volunteer basis, while banks' boards of directors get paid for

serving on the board. Another main difference between credit unions and banks, and one that is often overlooked, is the fact that a credit unions' primary objective is to serve the members, whereas a bank is driven by the need to make profits.

Congress created credit unions as an alternative to for-profit financial institutions. Today, more than 70 years later, credit unions still fulfill that role. They continue to provide consumers with a safe, convenient and low-cost option for financial services. As banks add and increase fees every day, it's nice to know that consumers have a choice where they conduct their financial business. More than 85 million people around the world — including nearly 2 million in Indiana — will celebrate that choice on International Credit Union Day.

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