Credit Unions: Our history

Credit unions have a proud tradition in the Australian community. They were formed to help the average Australian take control of their financial destiny, and to improve access to financial services for groups with a common bond or heritage.

Credit unions are built on the ethos of self-help - with mutuality as the cornerstone of our values and practice. Today, the vast majority of Australian credit unions are open to all members of the community. We continue to build on our proud traditions and history as one of the major players in Australian banking and financial services.

Timeline

  • 1844 - First financial co-operative organised by workers and weavers in Rochdale, England
  • 1848 - First credit co-operative in Germany conceived in the town of Flammersfeld by Mayor Friedrich Wilhelm Raiffeisen, to help farmers suffering from famine. A credit union was officially formed on December 1, 1849.
  • 1900 - Caisse populaire (credit union) formed in Canada by Alphonse Desjardins in Levis, Quebec. In 1909, Desjardins also organised the first credit union in the United States, in New Hampshire.
  • 1946 - Credit unions introduced to Australia by Kevin Yates, who had observed their success in Canada during World War II. Australia's first official credit union, Universal Credit Union, was formed in October.
  • 1950s - Approximately 50 credit unions register in NSW
  • 1960s - Credit unions were among the first to process payroll deductions for their members
  • 1966 - Australian Federation of Credit Union Leagues formed as a national body for Australia's growing credit union sector
  • 1969 - First Australian Credit Union Act (NSW) received royal assent
  • 1970s - World Council of Credit Unions formed to support the international credit union movement; credit unions continue to expand across Australia
  • 1977 - Queensland Teachers' Credit Union installs the first 24-hour ATM at an Australian retail outlet
  • 1981 - A credit union operates Australia's first EFTPOS facility
  • 1983 - The Rediteller national ATM network established for credit union members
  • 1984 - A NSW credit union processes the first international cash withdrawal from an ATM using a plastic card (a world first)
  • 1992 - Cuscal established as the key central services provider to credit unions
  • 1992 - AFIC established to regulate non-bank financial institutions
  • 1994 - Australian credit unions endorse a binding Code of Practice and Philosophy and Principles containing a core set of values and duties to stakeholders.
  • 1995 - Credit unions establish CreditCare with the Federal Government, in response to branch closures in country Australia by the big banks (CreditCare goes on to open 60 face-to-face services in country towns which have lost bank branches).
  • 1996 - Australian credit unions establish a formal, free complaints resolution service for members (CUDRC)
  • 1999 - Australian credit unions assume the same regulatory status as banks, reporting to the same regulator, the Australian Prudential Regulation Authority (APRA), regulated under the Federal Banking Act
  • 2000 - Credit unions move to full Corporations Act coverage under Federal Law.
  • 2006 - The Credit Unions Industry Association (CUIA) and Australian Association of Permanent Building Societies (AAPBS) merge to form a new, joint industry association, the Association of Building Societies and Credit Unions (Abacus)
  • 1 May 2007 - The National Credit Union Association and its members join Abacus, creating a single, united voice for all credit unions and mutual building societies in Australia.

DIFFERENT - that's what credit unions are.

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