The Power of Advocacy: Why Credit Unions Must Speak Up

When you ask credit union employees what they love most about their work, the answer is often similar: the credit union difference. Credit unions stand apart from traditional banks, whether it’s the industry’s “people helping people” philosophy or the mission-driven focus on financial well-being. As not-for-profit, member-owned institutions, credit unions offer lower fees, better interest rates, and personalized service while reinvesting in their communities. 

However, with the new administration and rapid regulatory changes, the credit union movement could be at risk. Now more than ever, industry professionals and members need to be dialed into what's happening on the state and national levels to protect the credit union movement. It is time to activate grassroots efforts to ensure lawmakers understand credit unions' vital role in our financial landscape.

Why Advocacy Matters for Credit Unions

Credit unions have a long history of advocating for their members and communities. Unlike traditional banks, credit unions do not have the same financial resources for lobbying efforts. However, what they lack in funding, they make up for in numbers. Credit unions represent more than 140 million members nationwide—an incredible grassroots force that, when mobilized, can make a significant impact.

A key example of the power of advocacy was the passage of the Credit Union Membership Access Act (H.R. 1151) in 1998. When the credit union tax-exempt status was challenged, the industry rallied, engaging members and employees in a massive advocacy campaign. The result was a landmark victory that secured credit unions’ ability to serve their communities without unfair taxation. Today, that same advocacy remains essential, especially as proposed interchange regulations, regulatory consolidation, and threats to credit unions’ tax-exempt status continue to surface in legislative conversations. 

The Current Advocacy Landscape

While credit unions often collaborate with banks on specific policy issues – like interchange regulations – they face unique challenges that require a distinct advocacy approach. One ongoing concern is the potential reassessment of credit unions’ tax-exempt status. Policymakers need to be reminded that credit unions operate differently from banks. Their not-for-profit structure allows them to return earnings to members through lower loan rates, higher savings yields, and community investments. Losing this tax-exempt status could negatively impact millions of members who rely on credit unions for affordable financial services.

That’s why advocacy isn’t just the responsibility of industry leaders – it’s something every credit union professional and member should participate in. National and state credit union associations provide valuable tools to help individuals contact legislators, share credit union success stories, and participate in grassroots campaigns. America’s Credit Unions (ACU) website offers resources to make grassroots advocacy easier and more impactful. 

How to Support Credit Union Advocacy

Advocacy is an ongoing effort, not a one-time initiative. Credit unions and their members can take several steps to ensure their voices are heard:

• Engage with Elected Officials: Credit unions should maintain regular communication with local, state, and federal legislators to keep credit union priorities on the agenda. Events like ACU's Governmental Affairs Conference (GAC) allow credit union professionals to unite and educate legislators about the positive impact of their work.
• Participate in Grassroots Campaigns: Every time a call-to-action is issued – whether it's an email to Congress or attending a legislative event – credit union professionals and members should take part. 
• Share Success Stories: Credit unions make a difference in their communities daily. These stories should be shared with legislators and the public, from supporting local businesses to funding financial literacy programs. Don't be afraid to brag about the good credit unions do!
• Stay Informed: Keep up with advocacy updates from industry organizations, such as Velera and the Electronic Payments Coalition, which help credit unions stay ahead of legislative changes and mobilize when needed.

The credit union movement thrives because of its unwavering commitment to members and communities. Credit unions regularly get on the calendars of elected officials; however, sustaining this mission requires ongoing advocacy at every level, and now is not the time to take our foot off the gas. Much like the critical moment that our industry faced in the 1990s, it is time for credit unions to join forces to protect our members and our communities.

By raising awareness, engaging with legislators, and leveraging data-driven storytelling, credit unions can continue to protect their tax-exempt status and ensure their ability to serve future generations. Staying informed with advocacy updates and raising your hand can make a significant difference. When credit unions advocate for themselves, they ultimately advocate for millions of Americans' financial well-being. 

Merry Pateuk fulfills Velera's strategic objective of leveraging the cooperative's scale to advocate on behalf of the credit union industry. She cultivates relationships between Velera and local, state, and national organizations that support credit unions and works collaboratively with industry partners to ensure alignment on key topics and a cohesive voice, ultimately strengthening credit unions' position in the market.