The ‘people helping people’ spirit of the industry shines in good times and bad

As the government shutdown drags on and more Americans miss paychecks across the country, America’s Credit Unions President/CEO Scott Simpson highlights how credit unions’ mission allows them to meet their members’ needs.  

In a CUDaily op-ed, Simpson emphasized that credit unions’ ability to rapidly provide flexible relief stems from their not-for-profit, member-owned structure—making them better positioned than banks to innovate and respond in a crisis.

“Credit unions offer federal workers better benefits and terms than traditional banks. How? Because unlike banks, credit unions are not-for-profit, member-owned financial institutions,” wrote Simpson. “Their field-of-memberships are affiliated with a major local employer to serve federal workers or a military base to meet the specific banking needs of service members and their families.”

Simpson noted that 85% of federal employees live outside Washington, D.C., with the financial fallout hitting families and local economies nationwide. In response, credit unions are offering low- or zero-interest furlough loans, emergency lines of credit, fee waivers, loan payment deferrals, and financial counseling. “The creative solutions that credit unions offer struggling federal workers are as diverse as the members and communities they serve,” wrote Simpson.

He highlights how credit union stories amid crises help to illustrate the industry’s mission in action. “The credit union industry’s response to the government shutdown-induced paycheck crisis is at the heart of who we are and influences every decision we make,” wrote Simpson. “When a crisis occurs, your primary goal is to protect your members. Their well-being takes priority over your own.”

“This time of year fuels the spirit of giving. And that’s the spirit of the credit union community—a spirit of service, both in regular times and especially challenging times like these,” he concluded.

Read the full op-ed