The Credit Union Movement and Martin Luther King Jr. Day

Celebrating Economic Inclusion

Established upon the tenant of “People Helping People” and in response to a practice of excluding working class people from lending within the banking industry, the Credit Union Movement has a history that dates back to 1901 in the United States (and the 1800’s in Europe). Working class people came together to deposit their money with and to form credit unions, which operate under the strict regulation of the National Credit Union Administration, today. Through this financial union, members have opportunities to establish and build credit and a financial portfolio they may not otherwise have through the banking industry.

Each year we close our offices in silent observance of the lifelong legacy of Dr. Martin Luther King Jr. Included in the fight for Civil Rights is a fight for financial inclusion, closely tying the Civil Rights Movement to the Credit Union Movement.

“In order to valuably utilize the present relaxed phase of the bus situation [Montgomery Bus Boycott] and capitalize on the prevailing enthusiasm and amazing togetherness of the people, a strong emphasis shall be placed on increasing our political power through voting and increasing our economic power through the establishment of a bank,” wrote Dr. King in his “Recommendations to the MIA Executive Board” [May 24, 1956]. According to Stanford University’s Martin Luther King Jr. Research and Education institute, the idea of establishing a bank was replaced with establishing a credit union because of the $400,000 deposit requirement at that time. The application for a credit union charter was rejected on the basis that it lacked a defined field of membership.

It’s well over a century since the Credit Union Movement was established in the United States, and Hawaii Central Federal Credit Union is proud to be one of many credit unions across the United States that stands to serve our underprivileged working class, including black Americans. We celebrate diversity and join forces with credit unions across the country as part of the CO-OP Shared Branching and ATM Network, striving to provide financial access to the working class everywhere.

We are here for you.