The History of Credit Unions
Credit Unions are unique financial institutions that have grown to serve many people around the world. To begin, let’s go over the history of credit unions, dating all the way back to 1901.
Credit Unions Come to North America
First, in 1901, Canadian journalist Alphonse Desjardins brought credit unions to North America. He organized The People’s Bank of Levis in his home in Levis, Quebec. Surprisingly, the first deposit in this bank was only 10 cents.
First Credit Union Opens in North America
Later, the first credit union, St. Mary’s Cooperative Credit Association, opened in 1909 in Manchester, New Hampshire. Alphonse Desjardins also assisted in opening this credit union.
The Massachusetts Credit Union Act was enacted by Pierre Jay and Edward A. Filene. Notably, this was the first general statute for establishing credit unions in the United States.
Credit Union Movement
Later, in 1920, Edward A. Filene hired an attorney, Roy F. Bergengren to energize and expand the credit union movement. Bergengren’s work ultimately established the foundation for today’s credit union system, earning him recognition for its development.
The Credit Union National Extension Bureau
The following year, Filene and Bergengren organized the Credit Union National Extension Bureau in 1921. This association focused on forming new credit unions, enacting state laws to charter credit unions, and promoting the philosophy of credit unions.
The Federal Credit Union Act Signed into Law
Then in 1934, President Franklin D. Roosevelt signed the Federal Credit Union Act into law. Afterward, officials appointed Claude Orchard as head of the Federal Credit Union Division.
Name Changed
Afterward, in 1948, officials renamed the Federal Credit Union Division to the Bureau of Federal Credit Unions.
The National Credit Union Administration is Created
Years later, in 1970, Congress created the National Credit Union Administration to charter and supervise federal credit unions. The first Administrator of NCUA was Lieutenant General Herman Nickerson Jr.
NCUA Board
Finally, in 1979, a three-member Board replaced the NCUA Administrator as the governing body for the agency. Currently, the President of the United States nominates and appoints these board members.
Modern Credit Unions
Today, credit unions have become a major player in the financial industry. While there are over 420 credit unions today, that number continues to grow. Since the day they were established, their core mission remains the same: To serve their members and communities rather than maximizing profits. To learn more in-depth history, read this timeline.