Iowa Credit Unions Provide $1.9 Billion in Economic Contribution to Iowa, New Report Finds
DES MOINES, IA — In celebration of International Credit Union Day and Governor Kim Reynolds’ proclamation declaring October 21 as 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 $1.9 billion in total economic productivity in Iowa last year. Authored by Iowa State University economist Dave Swenson, the report analyzed the 4,366 credit union industry employees, the $262.6 million in payroll and benefits and the $1.23 billion in total earnings last year 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 $0.55 elsewhere in Iowa’s economy, and every job at an Iowa credit union supports an additional 1.06 jobs in the rest of the Iowa economy. Iowa credit unions’ $1.9 billion economic contribution in Iowa is comprised of $905.5 million in value added GDP, of which $475.1 million is labor income to 8,990 job holders.
Gov. Reynolds’ 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.”
“Iowa credit unions are committed to improving the financial lives of the more than 1.4 million Iowans we serve, along with growing the local communities where they live and work,” said Murray Williams, President and CEO of ICUL. “On International Credit Union Day we celebrate the spirit of the global credit union movement and also recognize the positive impact Iowa credit unions have on our state’s economy. The cooperative structure saves Iowa credit union members more than $160 million annually – helping Iowans keep more of their hard-earned money and giving them the opportunity to reinvest it elsewhere in Iowa’s economy.”
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 291 million members in 118 countries worldwide. This year’s theme is “Building financial health for a brighter tomorrow.”
Download the 2021 Iowa Credit Union Day Proclamation
Download the Economic Contribution Report Executive Summary
Download the full Economic Contribution Report