In 1925, there were only 48 states. The first television transmitter was being invented. Movies had no sound. And there certainly wasn’t mobile banking.
Things change, but for the last 100 years, Iowa credit unions have remained committed to improving the financial lives of Iowans. With legislation signed by Iowa Gov. John Hammill in 1925 creating the Iowa Credit Union Act, the industry is celebrating 100 years of impact in 2025.
Credit unions began from the simple idea of coworkers and friends pooling their savings together and making loans to each other — forming a cooperative. In this fashion, citizens were creating their own locally-owned and locally-controlled institution.
These cooperatives have grown and evolved to respond to the financial needs of Iowans, championing the principles of financial inclusion, and empowering individuals and our local communities. Credit unions help Iowa members save more than $140 million annually in better rates and fewer fees than what they would pay for similar services at a bank. Today, more than 1.5 million Iowans are credit union members.
Employing more than 4,800 people around the state, the Iowa credit union industry provides a $2.7 billion economic impact to Iowa.
The Iowa credit union industry has consistently distinguished itself from traditional banks through a core set of cooperative values:
- Credit unions are owned equally by all their members — not a select group of stockholders. This means that profits are reinvested into the credit union to benefit all members, resulting in lower fees, higher savings rates, and more favorable loan terms for members.
- Credit unions have a long-standing commitment to offer a range of financial products and services designed to meet the needs of individuals and families, regardless of their income level or credit history.
- Credit unions actively participate in local initiatives, support charitable causes, and promote financial education programs to empower their members.
Over the past century, credit unions have played a pivotal role in shaping the financial landscape. The industry in Iowa has provided a secure haven for savings, extended affordable credit to individuals and small businesses, and fostered financial literacy among members. During times of economic hardship, credit unions have been a beacon of stability, offering a lifeline to those in need, including the recent COVID-19 pandemic where $126 million in PPP loans were made through Iowa credit unions.
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As we look ahead, the credit union industry will continue to adapt to the evolving needs of members. With the rise of digital technologies, credit unions have embraced innovation to deliver seamless and convenient banking experiences. Online and mobile banking platforms have become essential tools for managing finances, while advanced security measures protect members’ sensitive information.
Iowa credit unions will continue to be a trusted financial partner in the lives of millions of Iowans, provide a locally owned choice in the marketplace, and offer a financial safety net for those who need it most.
Murray Williams, President and CEO of the Iowa Credit Union League.