October 15, 2015
In celebration of International Credit Union Day, and in light of Governor Terry Branstad’s proclamation declaring October 15, 2015 Credit Union Day in Iowa, the Iowa Credit Union League (ICUL) released a new report today that showcases the not-for-profit credit union industry’s economic contribution to the state.
Per The Economic Contribution of Iowa’s Credit Unions report, Iowa credit unions contributed $1.1 billion in total economic productivity in Iowa in 2014. Authored by Iowa State University economist Dave Swenson, the report analyzed the 3,247 credit union industry employees, the $185 million in payroll and benefits and the $620 million in total income in 2014 to find the total value of the credit union industry to Iowa’s economy. These direct values combined with Iowa credit unions’ use of local utilities, services to operate facilities and credit union employees’ spending in local communities create a multiplier effect that supports even more jobs in Iowa.
The report found that every $1 spent by the state’s credit unions added $0.77 elsewhere in Iowa’s economy, and every job at an Iowa credit union supports an additional 1.28 jobs in the rest of the Iowa economy. Iowa credit unions’ $1.1 billion economic contribution in Iowa is comprised of $559.99 million in value added GDP, and $349.17 million in labor income to 7,402 job holders.
“As a longtime member of a credit union, I am grateful for the services they provide to their members and the Iowa economy as a whole,” said Gov. Branstad. “I recognize the value credit unions bring in creating and sustaining jobs in our state.”
Gov. Branstad’s Credit Union Day proclamation recognizes the Iowa credit union industry for its continuing advancement of the financial well-being of credit union members and the contributions made to their respective communities. It states, “Credit unions embrace a ‘people-helping-people’ philosophy through pooling of personal resources and leadership abilities for the good of the cooperative, empowering members to improve their financial future and uniting to help those in need.”
“On the third Thursday of every October, credit unions have celebrated a simple idea that by working together, people can improve their financial lives,” said Patrick S. Jury, President/CEO of the Iowa Credit Union League. “Iowa’s credit unions have contributed significantly to the state’s economy. However, while the more than $1 billion economic contribution is impressive, it is only a piece of the overall impact Iowa’s local, not-for-profit, member-owned credit unions have had on improving the financial lives of consumers, which is why credit unions are proud to celebrate International Credit Union Day in Iowa today.”
Sponsored by the World Council of Credit Unions since 1948, International Credit Union Day is celebrated to remember credit unions’ proud history and promote awareness of and support for the credit union difference. As not-for-profit, financial cooperatives, credit unions provide an effective and viable alternative to for-profit financial institutions for more than 217 million members in 105 countries worldwide. “People helping people,” this year’s International Credit Union Day theme, is the foundational philosophy of the credit union movement. It embraces the cooperative spirit as credit unions exist to serve members and provide a safe place to save money and access affordable loans.