Beyond Banking: How Credit Unions Serve Their Communities

Credit unions have always stood apart from other financial services providers. Not because of clever marketing or sleek technology, but because of how and why they were first built.

They weren't created to generate profit for shareholders. They were formed by people — teachers, postal workers, church groups, manufacturing employees — who needed access to fair financial services when traditional banks wouldn't serve them.

That origin story still defines what credit unions are today: financial cooperatives shaped by the needs of their members, with missions grounded in service and community support.

From just $107.88 $24.99 for Kiplinger Personal Finance

Be a smarter, better informed investor.

CLICK FOR FREE ISSUE

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

That structure changes everything. When you're owned by your members instead of outside investors, you don't operate at arm's length from the people who use your services.

The organization is accountable in a very real way through advisory boards, member feedback and daily interactions that reflect the communities you live and work in.

The credit union model prioritizes people over profit. It's not a branding gimmick; it's really how they work. Every dollar deposited is used to support other members, whether through loans, services or reinvestment in local programs.

This shows up in ways that go well beyond account openings and loan approvals.

A real-life example of doing good

In the past year, our credit union, Affinity Federal Credit Union, helped organize a large-scale food drive that gathered thousands of pounds of groceries for families facing food insecurity, working in tandem with other credit unions in New Jersey.

We also facilitated financial education workshops offered at no cost to high school students and underserved adults. The program gave people the tools to make sound financial decisions, regardless of where they banked.

These projects weren't designed to promote products or boost membership. They were delivered because there was a clear need for them in our communities.

You'll find similar stories at credit unions across the country. Many provide support during crises, run clothing and school supply drives and offer emergency grants to members who experience hardship.

Others create financial access points for first-generation savers or families who've historically been left out of traditional financial systems. These efforts are rooted in trust and shared purpose, meeting short-term needs and building long-term relationships.

It's all about accountability

Because credit unions are structured as cooperatives, accountability flows from the ground up. Every member has a vote.

That kind of governance means decisions tend to reflect the lived experiences of real people in the communities being served — not detached metrics or quarterly projections. It also creates a sense of shared responsibility.

When a credit union succeeds, it does so by helping its members and its community succeed, not the other way around.

Looking for expert tips to grow and preserve your wealth? Sign up for Building Wealth (soon to be called Adviser Intel), our free, twice-weekly newsletter.

Financial relationships at most institutions often feel transactional. Credit unions offer something more connected.

When members walk into a branch, they often know with whom they're talking. Their concerns are heard, not passed along to three or four different customer service representatives on a single phone call.

Neighbors helping neighbors

That consistency matters. So does the fact that the staff coaching someone through their first savings account or working with a small business on a loan probably lives in the same neighborhood, sends their kids to the same schools and shops at the same grocery store.

This kind of proximity makes credit unions more responsive. They aren't locked into rigid product lines or corporate strategies. They can build programs and resources that reflect the specific needs of their members.

That flexibility helps credit unions serve in ways that national financial institutions often can't replicate.

In my decades in the credit union space, I've seen firsthand how this model supports people's lives, not just their financial goals. It works because it's built on trust, consistency and shared goals.

There's no pressure to serve distant stakeholders. The focus is local, and the benefits are mutual. Our staff members listen, support and stay connected with our members over time.

That's why credit unions are embedded in the communities they serve.

Related Content

• Best Credit Unions 2025
• Four Reasons Credit Unions Are a Good Bet in Unsettled Times
• How Financial Institutions Can Blend Tech With Human Connection
• Five Perks of Choosing Local or Regional Financial Institutions
• How Your Financial Institution Can Help You Dig Out of Debt