The credit union movement’s social mission of “people helping people” was born in the late 1800s, when European farmers began pooling their money and lending it at low interest rates to others in need. The credit union structure allowed members to own their financial institutions and collectively lend money to other member/owners. This cooperative model successfully transitioned to America in the 1920s.

If you look at Iowa today, you see some societal dynamics that were also occurring 80 years ago when consumers first discovered the benefit of credit unions. Immigrant populations are again prevalent; loan sharks have re-emerged (now calling themselves payday and title lenders); rural Iowans have limited access to financial institutions; and the borrowing requirements of small businesses do not generate enough profits to be a priority of commercial banks.

The American credit union movement blossomed in the 1920s as a cooperative alternative to for-profit banking. Now, it appears history is repeating itself, and Iowans are again experiencing the advantages of credit union membership. Credit unions are paying special attention to serving those Iowans who are most underserved, namely people of modest means, those in rural communities, immigrants and small businesses. To exemplify credit unions’ social mission, the Iowa Credit Union League (ICUL) and Iowa Credit Union Foundation have jointly hired a full-time director of community development whose sole focus is to develop programs that will better serve the financial needs of underserved Iowans. The director, Wendy Wicks, is working with credit unions, government agencies and community partners to develop programs and processes that help Iowa credit unions reach out to Iowa’s diverse and proud citizenry.

To aid Iowa’s small businesses in need of credit, the ICUL has partnered with two Central Iowa credit unions to launch Community Business Lenders. This program helps credit unions reach out to underserved businesses to provide affordable credit through Small Business Administration or conventional loans. CBL’s vision is to build stronger Iowa communities — one business at a time.

Though credit unions have long championed the financial needs of the underserved, more help is needed. For example, it’s estimated that more than half of immigrants in the United States currently do not have a primary financial institution. Instead, many use high-cost payday lenders and check cashing outlets for all of their financial needs. It is unconscionable for some within the financial arena to prey on those of little means. Iowa credit unions are combating this through financial education — helping the underserved understand what other options are available to them.

Finally, we are seeing an alarming loss of locally owned financial institutions in Iowa as banks in small communities consolidate, leading to a decline in accessible financial services for rural Iowans. Credit unions are partnering with cooperatives to find innovative ways to provide financial access to rural Iowa.

Financial education and empowerment get to the core of economic distress by providing the tools for individuals and families to better manage their money. Credit unions are engaged in several efforts to empower those in financial distress. We encourage others to join us in this vital effort. By providing Iowans with the means to lift themselves up financially, our families, businesses, communities and economy will all prosper.

Patrick S. Jury is vice president of the Iowa Credit Union League.