3 Ways Your Local Credit Union Can Positively Impact Your Community
In 1953, Walter York started Steel Parts Credit Union (now Encompass Credit Union). His reason for doing so was to help his fellow steelworkers – and it was his passion for helping his community that drove him to create an entity that is proudly part of the top 20% of credit unions in the country.
When he started the credit union, he witnessed its profound impact on the community. And though the number of credit unions in the U.S. has declined recently, we still believe that credit unions can still positively impact their communities.
Credit Unions vs. Banks – What’s the Difference?
Since banks and credit unions offer similar services, distinguishing between the two might seem difficult. However, the main difference between the financial entities is that the purpose of credit unions is to meet the needs of their members. On the other hand, banks do their best to meet the needs of their stockholders by maximizing profits and ultimately issuing dividends.
And while banks are focused on profits, credit unions are nonprofit organizations. When they earn a profit, the money goes back to their customers in the form of:
· More credit union locations
· Better equipment (ATMs)
· Better rates
· More ATMs in more locations
3 Key Ways Credit Unions Benefit the Community
Credit unions are nonprofit community banks. But how do they really benefit you, your small business, and your community?
1. Credit Unions Are the Core of the Local Economy
Larger banks are corporations with headquarters in large cities. Local branches are helpful for basic banking needs, but the money doesn’t necessarily stay in the community. Most, if not all, of the profits go back to the home base and stockholders.
Local credit unions lend money to small businesses within a community, which then helps to promote the success of the local economy. Small businesses often need loans to get started or keep their doors open, so it's important for them to have a financial partner that can understand their needs and goals. When you bank at a credit union, you’re also helping your neighbors – and in turn, they’re helping you.
2. Credit Unions Assist Underserved Communities
A bank won’t set up business in a community where it’s not sure to make a profit, leaving many poorer communities underserved. If these communities don’t have access to economic resources, it’s unlikely that they will thrive. Small businesses have a hard time getting started if there’s no financial backing.
Thankfully, credit unions are here to fill this gap. They can help local small businesses with loans, contribute to school fund-raising activities, and sponsor community events.
3. Credit Unions Promote a Sense of Community Pride
Credit unions often serve as the financial backbone of a community. However, a big part of their impact comes from promoting community pride. They do this by supporting and promoting local events, businesses, and people.
You might see posters that announce a school’s holiday performance, an event that a local business is hosting, or even a sponsorship on a little league team's jersey.
Because at the end of the day, these financial entities are comprised of your neighbors who want to see their friends, neighbors, and community thrive.
Encompass Credit Union – Continuing to Help Our Community Since Day One
Walter York started Encompass Credit Union to do his part to help his community, and that mission hasn’t changed in nearly 70 years. We guarantee that finding ways to help our community will continue to be the driving force behind every decision we make for decades to come.
Would you like to learn more about the impact Encompass can make in your life, business, or community? Contact us today to talk with one of our representatives.