By Michelle Skinner, Communications Director

Joining a credit union means you’re doing more than opening a checking account or applying for a loan. You’re becoming part of a global cooperative movement built on the simple idea that people are stronger when they work together.

While banks are here to generate profits for shareholders, credit unions were founded on a different principle: people helping people. That philosophy has guided credit unions for more than a century and remains at the heart of every member-owned financial cooperative today.

The Cooperative Roots of Credit Unions

I hope that you enjoy a good story as much as I do because I’m about to tell you one. It’s the origin story of credit unions: where they began and how far they’ve come while maintaining their core values.

Much like other great exports like pretzels, bratwurst, and Heidi Klum, credit unions came to us from Germany. Way back in the 1850s, a gentleman named Franz Hermann Schulze-Delitzsch established the first credit unions to provide those who lacked access to financial services with opportunities to borrow from savings pooled by themselves and fellow members.

The idea of financial cooperatives migrated to North America in the early 20^th century. And, in 1909, St.Mary’s Cooperative Credit Union opened in Manchester, NH, becoming the first credit union in the United States.

Credit unions in the United States grew in popularity alongside flapper dresses. After World War I, American families finally had enough money to afford bigger purchases like automobiles and washing machines, but they still lacked access to affordable and safe lending.

That’s where credit unions really shine: serving the underserved and providing affordable, community-focused financial services.

Congress further strengthened the movement by passing the Federal Credit Union Act in 1934, allowing credit unions to expand nationwide and bring cooperative financial services to millions of Americans.

Closer to home, Montana Credit Union in Great Falls can trace its roots to November 18, 1940, when 20 residents from Great Falls and surrounding communities organized the Great Falls Cooperators Credit Union. Their mission was simple: provide low-interest loans, encourage savings, and help neighbors achieve financial security. Today, I think Montana Credit Union would agree that its mission has remained remarkably consistent.

More than 85 years later, Montana credit unions may offer sophisticated services such as mobile banking, mortgages, business lending, and financial planning, but their core purpose remains unchanged: serving members rather than shareholders and helping Montanans achieve financial well-being through the cooperative principle of people helping people.

If you loved this story and want to learn more about the history of credit unions in North America, scroll through this timeline from the National Credit Union Administration.

What Makes a Credit Union Different

The original cooperative values established in the 1800s remain surprisingly relevant today.

Credit unions operate according to cooperative principles like democratic member control, voluntary membership, education, cooperation among cooperatives, and concern for community. Unlike a bank, where voting power may be tied to the number of shares owned, every credit union member gets one vote regardless of the size of their account balance.

Because credit unions are not-for-profit financial cooperatives, earnings are returned to members through competitive loan rates, lower fees, better savings yields, improved services, and investments in local communities. The people who use the credit union are also its owners.

This structure creates a powerful difference. Success is measured not only by financial performance, but also by how well the credit union serves its members and strengthens the communities where they live and work.

The Credit Union Difference in Montana

For generations, credit unions have been lifelines for Montana’s rural communities, providing affordable financial services across Montana and preventing banking deserts. Whether serving small ranching communities or growing college towns, Montana’s credit unions remain deeply committed to empowering their communities through local decision-making, financial education, and meaningful investment where it matters most.

Montana credit unions also embody the cooperative principle of “concern for community.” Across the state, credit unions support financial literacy programs, school initiatives, charitable causes, youth savings programs, and community development efforts. Many participate in national cooperative initiatives while maintaining a distinctly local focus on the needs of Montana families and businesses.

Some Montana credit unions even hold Community Development Financial Institution (CDFI) certification, directing significant lending resources toward underserved individuals and communities while helping members build long-term financial well-being.

Why It Matters Today

In an era of digital banking, artificial intelligence, and increasingly complex financial products, the cooperative model remains remarkably relevant — much like The Great Gatsby, The Beastie Boys, and other timeless concepts.

More now than ever, consumers are looking for trusted financial partners that prioritize relationships over profits. Credit unions continue to fill that role by putting members first, investing locally, and maintaining a mission rooted in service rather than shareholder returns.

The tools may have changed since the first cooperatives formed in the 1800s, but the purpose has not. Credit unions still exist to help ordinary people achieve financial security, build stronger communities, and create opportunities for future generations.

That’s the power of the cooperative movement. Every time a member deposits a paycheck, finances a vehicle, or saves for a dream through a credit union, they’re helping carry that tradition forward.