The League

The Growth of Credit Union Leagues
During the formative years of the credit union movement, credit unions quickly discovered that they could expand faster and provide better service if they banded together into leagues on a state-wide basis. Leagues provided financial and legal advice, organizing know-how, and an instrument for credit unions to use in seeking favorable state legislation. But something more was still needed.

The Credit Union National Association (CUNA) is Created

In 1934, the credit union idea spread so fast that credit unions and leagues recognized the need for a national organization. At a meeting at Estes Park, Colorado, the Credit Union National Association (CUNA) was formed as a confederation of state leagues. CUNA replaced the Credit Union National Extension Bureau and Roy Bergengren became CUNA's first managing director.

In the same year, Congress finally passed a federal credit union act, which permitted credit unions to be organized anywhere in the United States. The passage of this landmark legislation created a choice for credit unions. They could incorporate under either state or federal law. This system of dual chartering persists to the present day.

Almost immediately after its organization, CUNA recognized a need for credit-union-oriented insurance services and standardized office supplies.

In 1935, CUNA formed the CUNA Mutual Insurance Society. Declaring, "The Debt Shall Die With The Debtor," CUNA Mutual developed a Loan Protection Insurance policy followed shortly by Share Life Insurance. These programs provide for specified compensation to the beneficiaries of deceased or disabled credit union members.

Begun with a $25,000 loan from Filene, CUNA Mutual had receipts of only $145 during its first month of operation. Three months later, it was faced with its first claim, for $40, and had to borrow money to pay it.

Today, the CUNA Mutual Group is one of the largest insurance companies in North America in terms of insurance in force and writes more credit life insurance than any other company in the world.

The second growth move by CUNA was the formation of CUNA Supply Cooperative in 1936. CUNA Supply was designed to supply forms and other materials to credit unions. Starting with only three employees in a basement shop, CUNA Supply is now part of CUNA Service Group, which provides more than $22 million in products and services to credit unions each year.

The War Years and After

World War II halted progress of the U.S. credit union movement, just as it did many other sectors of the economy.

With the end of the war came renewed credit union growth in the United States. In 1945, there were 8,683 credit unions in the country; by 1955, there were 16,201; and by 1969, the U.S. movement reached its peak of 23,876 credit unions.

Since then, the number of credit unions has declined, as many smaller credit unions have merged into larger ones that usually offer more services.

Membership, however, has continued to climb. The number of credit union members doubled during the 1970s to more than 43 million by the end of the decade. Today, some 67.4 million Americans are credit union members.

In Canada, organization of new credit unions has also tapered off since the 1960s, reflecting a trend toward fewer, larger organizations. Membership in Canada now totals close to 4.5 million. .................................... Back