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What do you know about schools first credit union?

I have been trying to accumulate information regarding schools first credit union. I’d like to know in brief when the union was formed, its progress, customers, members and how it has affected school education since it was founded. In addition I need to know how the schools credit union was managed. I have little information regarding school districts in which the union operated and I will appreciate any contribution that will help me understand more about credit unions. I also need to know the roles of the learning institutions credit unions and why they are better when compared to banks.

Megan Page

in Schools

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Aaron Lee on January 11, 2018

Hello,
Here is everything you need to know about the first school credit union. First of all, the union was established to help members save and access flexible loans not available in banks. The founders who were 125 in total were simply school employees. At the beginning they managed to pool $1,200 as a starter. Primarily, the union served the educational fraternity in Southern California. The union head office was located in Santa Ana, California and it has since expanded its branches across most parts of California and the United States as a whole.

Despite its humble beginning the union has been expanding and by the end of 2012 it had reported an asset base of $9.38 billion, getting it to the top five largest credit unions in the American history. Interestingly, the school credit union customer base has grown to over 700,000 members as per 2016. For your information, the union’s profit as per 2016 was over $1.14 billion. It has a mouthwatering capital to asset ratio of almost 12% and is undoubtedly one of the best financial institutions in the US. Also worth noting for you, is how credit unions serve employees in schools education curriculum. Check out the following educational entities which serve both certificated and classified employees:

  • Public primary and secondary schools which are listed as private schools.
  • Authorized colleges and universities
  • County superintendents of schools
  • Community colleges
  • Accredited education foundations

The union had members in each and every school district in California. These schools were mainly public but after that a number of members from private institutions also joined the union. The unions provided loans, savings and a range of financial services to all its members. They are basically controlled and owned by the members. You should also understand that every member has a single vote. There is no external shareholder that is permitted into the credit union ownership and it is only those who use the union services that can buy and sell their shares. Another key point to note is that school credit unions are always meant to provide the best services to its members and not necessarily to maximize profits.

In addition, you should note that membership of a credit union is founded on a common bond. Usually, it can be working for a specific employer or in a given industry, or simply working or living in a specified geographical location which can range from small villages to large local authority locations. All credit unions come in different shapes and sizes. Whether you’re searching for a credit union with phone and online banking, a local service point or branch a customer can walk in at any time or simply client-employer payroll partnership - you’ll find that all have incorporated into the first credit union for schools.

Kurt Pricea year ago

For sure, there is so much to learn about school credit unions, especially this one. The above answer offers great information regarding the history, function and management of credit unions that serve school employees. Personally, I didn’t know much regarding the first school credit union but the above answer provides sufficient insight into what the union was. Just remember that there are no ‘fit all rules’ in a credit union, and also there is a wide variety in the sort of services and access locations which different credit unions provide in order to meet the diverse range of consumer expectations and preferences.

You should also know union members save their money in SACCOs, get loans and share profits with their unions. I get that you may be wondering why school employees should choose credit unions over banks. The answer is simple, every credit union focuses on serving its members adequately and can always offer the sort of smaller and shorter-term loans which many banks simply can’t provide.


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