Credit unions play an important community role

Credit unions are a valued alternative for Iowans in the financial services marketplace. Founded in the philosophy of 'people helping people,” credit unions are not-for-profit financial cooperatives that return their earnings to members in the form of better rates on loans and deposits, as well as lower fees.

Unlike the structure of a bank, which is designed to generate profits for a select group of stockholders, the credit union cooperative structure helped more than 1 million Iowa credit union members save approximately $100 million last year relative to what they would have paid for similar services at a bank. In addition, each member-owner of a credit union has one vote in board elections, giving them the opportunity to steer the course of their financial institution.

Iowa's credit unions have a positive impact on our economy. A new economic report from Iowa State University found Iowa credit unions contributed $1.1 billion in economic productivity to the state's economy in 2014. Every $1 spent by Iowa's credit unions added another $0.77 of value to the economy, and every job at an Iowa credit union created an additional 1.28 jobs elsewhere in the state. When the direct and indirect jobs created by Iowa credit unions are combined, Iowa credit unions contribute 7,402 jobs paying $349 million in wages to the Iowa economy.

Iowa's credit unions also have a direct impact in their local communities. As CEO of the University of Iowa Community Credit Union, I have had the privilege to work in the credit union industry for 20 years, and have seen first hand the impact credit unions have in the community and the many ways they improve the financial lives of Iowans. Here in Eastern Iowa, we support events like the Cedar Rapids Barbeque Roundup, the Iowa Children's Museum Free Family Night, My Waterloo Days, or the Grinnell Central Park Project, to name a few. Last year, UICCU committed more than $800,000 to local events, and provided 4,500 volunteer hours. In short, as our credit union grows so too does our commitment to our neighbors.

As we look ahead to the next state legislative session, credit union advocates will be asking state policymakers to support the cooperative tax structure of our not-for-profit financial institutions, allowing credit unions to put the interest of members ahead of the motivation for profits. In addition, credit unions will be advocating for increased funding for valuable financial literacy programs, like the Iowa Credit Union Foundation's statewide Individual Development Account (IDA) program, a matched savings program that helps Iowans save for an asset that will help them improve their lives.

Iowa's credit unions help their members save money, support local communities and provide a significant boost to the state's economy. Iowans win when there is choice and competition in the marketplace. With more than 1 million credit union members in Iowa, our state legislators can help their constituents by supporting Iowa's credit unions.

' Jeff Disterhoft is president and CEO of the University of Iowa Community Credit Union. Comments: www.uiccu.org