110th CONGRESS, LEGISLATIVE ISSUES A - Z
WHAT IS THE CREDIT UNION DIFFERENCE ON A GLOBAL SCALE?
The World Council of Credit Unions (WOCCU) is an international trade association and development agency that serves more than 123 million credit union members in 87 countries around the world. Primarily funded by the US Agency for International Development (USAID), WOCCU is committed to the development and strengthening of “safe and sound” credit unions in developing countries, and provides access to savings, microlending, and other financial services to promote self-sufficiency and sustainability.
CUNA has been a long time partner of WOCCU, and, through credit union and League membership dues, is a major source of financial support for credit union development around the world. Since WOCCU’s founding in 1971, WOCCU, CUNA and their member credit unions have worked to show the “Credit Union Difference” around the world by:
- Providing Financial Services to Those Who Otherwise Would Not Have Access. Credit unions are the largest source of microfinance services in Guatemala, Jamaica, Ecuador, Sri Lanka, and Kenya. In Honduras, Brazil and Mexico, more than 50% of the rural financial services are provided through credit unions.
- Banking the Unbanked Through Low Cost Remittance Services. WOCCU and CUNA offer their member credit unions a remittance product, IRnet, which allows credit union members in the US to send remittances to their families at a fraction of the cost of other mainstream providers. In Guatemala, El Salvador, Mexico, Honduras, Jamaica, Ecuador, Peru and Kenya, credit unions are major distributors for remittances, and are able to reach into the rural areas that offer few other options for banking services. As a result, previously unbanked persons have access to a financial institution where they can open a savings account, become members and qualify for microloans.
- Democratization of Societies. The one-member one-vote principle of credit unions is used as a vehicle for local expressions of democratic participation. In Vietnam and Uzbekistan, the credit unions lead economic democratization a step closer to political democratization. Providing economic security and sustainability and exposing lower-income communities to free-market principles and US based democratic values will help to stomp terrorism at its roots.
- Post Conflict Rebuilding of Societies and Economies. Financial services are not all there is to the “Credit Union Difference.” Credit unions are a social movement, a civil movement, and a self-help movement. As an example, credit unions in Afghanistan are providing community grassroots reconstruction, finance for agriculture production, and experience in local community democratic participation.
- Voluntary Contribution of the US Credit Union System to Economic, Social and Democratic Growth Around the World. Volunteers from CUNA, Leagues and credit unions have done extensive work through the US State League to National Association Partnership program, providing services to partner credit unions in developing countries in areas such as training staff, expanding services in rural sectors, and helping to achieve appropriate legislation and regulation.
