As anyone who is a part of the credit union movement will tell you, credit unions are “different”. Not just “unique” (although we’re that, too!) but different from most financial services organizations in fundamental ways. The roots of the unique and vital role we serve in our communities are a direct outgrowth of the principles on which all credit unions are founded.
Our differences from other financial service organizations aren’t just on the surface. While different credit unions may brand themselves in different ways, serve different communities, and even offer different products, services, and rates, we’re all deeply united at our core. These unifying factors are the result of our cooperation – in fact, they’re because we’re all part of the Cooperative Movement!
Some quick history: the Cooperative Movement first emerged in Europe a few hundred years ago as the Industrial Revolution rapidly changed many aspects of society. Working class people came together to form Member-owned cooperatives as “societies within a society” where they could help each other meet basic needs and use their combined buying power to negotiate lower prices on vital goods and services. Retail cooperatives, work cooperatives, housing and utility cooperatives, and financial cooperatives (which in the U.S. would come to be known as credit unions) were all developed based on the example set by these early pioneers of collaboration and group empowerment.
The Cooperative Movement has come a long way since the Industrial Revolution, but those initial goals and principles have largely stayed the same. “People helping people” has become a motto that resonates just as much now as it would hundreds of years ago, because the ability of individuals to lift each other up through cooperation is timeless. In addition to credit unions like Mazuma, the Cooperative Movement lives on in member-owned retail stores like REI, famous for outdoor supplies, and Ocean Spray, the cranberry juice company collectively owned by cranberry farmers.
What about those foundational principles, though? Traced back to the first modern cooperative founded in England in 1844, the Cooperative Principles have evolved to meet changing needs while staying true to their original spirit. Today, the National Credit Union Foundation lists eight Cooperative Principles that specifically address how credit unions approach our service to Members.
They are (slightly adapted for space):
What do these eight principles mean in practice? We could talk about that all day!
Broadly, the Cooperative Principles ensure that our focus is always on our Members and our community. As a Member-owned, not-for-profit financial cooperative, our goal isn’t to make money for shareholders – it’s to continually improve our Members’ lives and the community that we serve. The Cooperative Principles form the foundation of our purpose, which is Making Kansas City a Better Place to Live, Work, and Bank. You’ll also find them at the heart of our Give Back efforts, which include providing financial support to local non-profit organizations, offering our spaces to community groups, and our 40 Hours for Good program, which enables our Team Members to give back to our community through volunteering.
At Mazuma, we’re proud that the Cooperative Principles have been a strong foundation for our efforts to serve our Members and community for 75 years and counting. Now that’s something to celebrate!