Louise McCarren Herring: The “Mother of Credit Unions”

By Tiffany Benavides, supervisor for virtual member services, Fort Worth City CU

“It’s not about money, not about accumulating capital. It is about helping people’s lives be better.” These were the wise words of the woman many of us know as the “Mother of Credit Unions,” Louise McCarren Herring. Herring was a pivotal figure who helped organize more than 500 credit unions, particularly in Ohio.

In the early 1930s, while working for the grocery chain Kroger, Herring (just 23 years old at the time) began to notice the devastating effects of debt on working families. She became outraged by a local organization known as “The Bucket Shop,” a loan shark that charged incredibly high interest rates to people who were desperately running out of options. This practice trapped borrowers in ongoing cycles of debt, a problem still seen today with some local and global payday lenders.

Herring became aware of new financial institutions slowly growing on the East Coast, known as credit unions. These organizations pooled members’ money so they could lend to one another at much lower interest rates than predatory lenders. Fresh out of college and only 23 years old, Herring led the development of 13 credit unions to serve Kroger employees.

As credit unions began blossoming across the United States, leaders of the early credit union movement realized they needed to create a nationwide support association. They called a conference in Estes Park, Colorado, in August 1934 to establish the organization. Credit union organizations were asked to send one representative to the meeting, and Kroger sent Herring, who was the youngest attendee.

That meeting, known as the Estes Park Conference, led to the formation of the Credit Union National Association (CUNA), now known as America’s Credit Unions, the national trade association for credit unions in the United States. Herring became CUNA’s first female board member and used that position to help establish the Ohio Credit Union League. Throughout her career, she helped charter more than 500 credit unions.

As a key leader of the credit union movement, she firmly believed in equality and access to affordable financial services for people from all walks of life.

Credit unions across the country continue to honor and celebrate her impact on the industry. America’s Credit Unions annually presents the Louise Herring Award for Philosophy in Action, recognizing credit unions that “demonstrate exceptional effort in integrating credit union philosophy (not-for-profit, but for service) into their daily operations and commitment to superior service for their member-owners.”

Herring helped pave the way for credit unions, and for women across the industry. Her efforts, impact, and strength continue to be recognized and celebrated.

Louise Herring