Today’s credit union system looks nothing like it did more than 100 years ago when the movement started. From humble beginnings at St. Mary’s Bank in Manchester, N.H., where handwritten general ledgers and shoe boxes were the tools of the trade to today where credit unions have embraced new technologies as fast as any type of financial institution, our industry has evolved at a breakneck pace.
So do our roots matter? Is it nothing more than nostalgia to talk about how credit unions were created, why and how we have evolved? I firmly believe that our history does matter and we can’t move forward as a system with our same cooperative principles if we don’t recognize where we came from and how we have changed.
The very reason credit unions were started more than 100 years ago is just as important today as it was then. CUs were created to help those of modest means pool their resources and lend to each other so they could raise their families, start businesses and create opportunities. Those needs have never been more important than they are today, where a changing economy has left many consumers struggling to find their financial footing. Many Americans are part of a new wave of “gig” employees who rely on many sources of income. More young people are worried about how they will afford their aspirations of higher education as college costs continue to increase. Small businesses continue to be the engine that drives America. Though we all know credit unions are unfairly saddled with a 12.25 percent member business lending asset cap, we remain one of the best avenues of capital for emerging small businesses that need a chance. The times have changed, but not the need for everyday consumers and small businesses to have capital to pursue their dreams. That’s why credit unions were created.
Of course while we are evolving, we do risk losing some of our historical roots. The credit union system has shrunk from approximately 25,000 credit unions at its height to fewer than 6,000 today. In that process, many credit unions have been merged away and original fields of membership have morphed into new ones. These are all great signs of progress and, like any other business, credit unions must evolve to stay current with today’s member needs. But we must never forget those credit unions that have gone away or the thousands of credit union leaders who have left an indelible mark on the credit union system. It’s why I am so excited about what we are doing at America’s Credit Union Museum, a place I like to call the best kept secret in the credit union system. Many veterans of the credit union movement are aware of the CUNA/league system’s Credit Union House in Washington, D.C. It is a magnificent place and a beacon to our political will and might on Capitol Hill. Its very presence reflects how far credit unions have come in telling their powerful story to Congress to ensure the credit union charter stays strong.
Unfortunately, many credit union veterans have not had a chance to come to Manchester, N.H. to visit America’s Credit Union Museum, the place where the credit union system started and the site of the our nation’s first credit union. Visitors might be surprised by what they find. Like the credit union system, the museum has also evolved. While we still have the original desk from St. Mary’s Bank and a replica of that original office, the museum is now a high-tech, 7,200 square-foot facility where visitors can not only learn about St. Mary’s but all facets of credit union history. It has been modernized with state-of-the-art video conferencing equipment, modern meeting facilities and more.
Just as Credit Union House is a vital beacon for the political power of the credit union system, America’s Credit Union Museum is a monument to who we are, where we come from, why we exist and where we are going as a system. It’s also a place where each individual credit union can ensure its own history is told. Credit unions have the ability to utilize the museum’s online systems to log their history and no matter how the institution changes, its roots will live on in our archives for future generations to explore.
Let’s not forget our past and let’s ensure one of the best places to ensure our history stays strong. Join me in ensuring that America’s Credit Union Museum is not the best kept secret in the credit union system, but one of the most visited and utilized sites for honoring the past and charting our very bright future. I am so committed to telling the story of our great credit union system that if you give me some notice, I may just come by and give you a personal guided tour. We at the museum are here to serve the credit union system, so put us on your wish list and ensure your credit union stays in touch with the roots that made today’s credit union system possible.
Paul Gentile is the president and CEO of Merck Employees Federal Credit Union in Rahway, NJ and the chairman of America’s Credit Union Museum. He can be reached at
