Core Values and Community Purpose: How Credit Unions Support Their Members

As not-for-profit financial institutions owned and controlled by their members, credit unions occupy a unique position within the banking and finance industry. They are driven by the communities they serve, which means they constantly strive to ensure that their organizational focus aligns with the values and needs of their membership. This alignment naturally affects the decisions and actions of credit unions as they adapt their services and policies to better serve their community, but it’s not a simple task.

Ultimately, credit unions’ executive leadership needs to understand how they can protect the needs of individual members within the institutions’ greater organizational structure to properly support their community. Beyond simply providing financial services, they need to understand what matters most to their community, where they come from, and how they can align their organization with those values.

Community Roots: Where Credit Unions Begin

Most credit unions exist to support a specific community. These communities usually revolve around their region, industry, or a specific organizational or cooperative need. For example, University Credit Union was founded on the UCLA campus in 1951 by university employees to give everyone in the university community a financial advantage. These types of community roots inform and shape the organization’s decisions as it grows to keep it aligned with the community’s needs.

Of course, as credit unions grow in asset size and membership, they may evolve to expand their services to a broader community, but fundamentally, they put people first.

“Even as we continue to grow and expand our reach, our commitment to Empowering People to Discover Financial Freedom is as strong as ever,” Mike Valentine, president/CEO of the $5.8 billion, Vernon Hills, Ill.-based BCU, said. “BCU was founded over 40 years ago by employees for employees and now provides lifetime access to financial services and well-being for over 350,000 members. Our field of membership includes those who live or work in the communities we serve, and employees and families of some of America’s best workplaces.”

Core Values: The Key Differentiator

Core values are the bedrock of what sets credit unions apart from other institutions in the financial industry. As member-created and driven organizations, they focus on things that directly impact the community and individual members. There is a deep concern about members’ lives, whether they have access to financial services, whether they can successfully finance a home or a car, and whether their community is actually thriving because of the organization’s contributions.

To maintain this mission, organizations must adhere to their core values to manifest the community’s needs within organizational decisions.

For example, Faye Nabhani, president/CEO of the $4.6 billion, Folsom, Calif.-based SAFE Credit Union, shared how her organization incorporates its core values into its business practices. “SAFE’s core values are member first, one team, everyone belongs, do the right thing and know your stuff,” Nabhani explained. “These values are designed to reflect the community’s needs and guide SAFE in its purpose of helping members build financial freedom. In addition, our One Team philosophy emphasizes working together to achieve common goals, and this emphasis reflects in SAFE’s role as a corporate citizen, supporting local communities through philanthropy, donations and sponsorships.”

Serving Diverse Needs Within a Community

No community is entirely homogeneous. While there may be shared values and common needs, credit unions should be aware of individual differences amongst their members to foster inclusivity and equity. Awareness at this level helps provide a deeper understanding of the segments that make up a community and makes it easier to identify methods of supporting them through partnerships and specific initiatives.

Rich Kump, president/CEO of the $700 million, Hadley, Mass.-based UMassFive College Federal Credit Union, shared how transparency and engagement help bring more support to the community they serve.

He explained, “There are so many organizations and worthwhile causes that need help, and financial institutions are a primary industry to support organizations, so we write checks as every financial institution does, and in that way, we are no different. However, the difference with us is that we also show up. If there is an event to support, our employees and managers are there, and our marketing team is helping promote to amplify the success of it. So we don’t just provide funds, we want to be a part of the fabric of whatever cause that money is supporting. If it’s good enough for us to give money to, it’s certainly worth our time as well. If you truly want to be transparent and engage your community, then you have to put your money, and your effort, where your mouth is.”

Giving Back to Build Community

Beyond providing financial services to their members, many credit unions take initiative outside their core services to give back to their community. These programs embody the credit union spirit and how it puts core values into action to make a difference for the communities they serve. As Linda Armyn, president/CEO of the $12.8 billion, Bethpage, N.Y.-based Bethpage Federal Credit Union, said, “Our core values are embedded in our corporate strategies, policies and success metrics. These values form the baselines for all teammate evaluations and decision-making. They are not words on the wall; they are included in everything we do. Through grants, volunteerism, sponsorships and our new ‘Difference Makers’ program, we endeavor to invest in the lives of those between 13 and 21 years old, all designed to leave a lasting and positive impact on the communities we serve.”

Giving back is not just an industry catchphrase but rather an ethos deeply ingrained in the fabric of credit unions. Unlike other types of financial institutions, where the focus is on shareholders, the focus for credit unions is on members. Credit unions have a multi-dimensional impact on the communities they serve. The unwavering commitment to members’ financial literacy, stability and overall well-being sets them apart as trusted allies in communities nationwide. That commitment stands as the driving force behind their ability to give even more to their members.

It’s All About People

Ultimately, credit unions thrive as organizations because they put people before profits. It’s a key position for them within the financial industry, and it’s the competitive advantage that enables them to adapt to the communities they serve.

For example, Central One Federal Credit Union’s mission of “People Helping People” perfectly reflects the industry’s perspective, and its mission’s values are often echoed by other credit unions nationwide. As Devon Lyon, president/CEO of the $800 million, Shrewsbury, Mass.-based Central One put it, “We want our members to be in a better position because the most stressful things in life are often related to finances. We aim to help them manage that.”

This fundamental value isn’t just about members; it starts with the people who work at credit unions and permeates into the broader community they serve. Without a humanistic approach to financial services, credit unions simply wouldn’t be what they are today.

David Tuyo

Dr. David Tuyo is President/CEO for the $1.1 billion, Los Angeles-based University Credit Union.