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The Economic Impact of Credit Unions on Local Consumer Lending Markets

The economic impact of credit unions on local consumer lending markets is significant. Credit union market presence influences bank loan and deposit rates, providing savings and benefits to both banks and their bank consumers.

Hannan (2002) estimated that a 1 percent change in credit union market share led to a 0.2 percent decline in bank money-market deposit rates, 0.1 percent decrease in interest checking rates and 0.3 percent decline in 3-month CD rates.

1. Jobs

Credit unions employ a variety of people, from customer service representatives to accountants. They also rely on volunteers and donated office space. These jobs are critical to Alaska’s economy, and it is unlikely that they would continue without the federal tax exemption.

Research supports that consumers benefit from the presence of credit unions in local financial services markets. The competition created by the federal tax exemption allows credit unions to offer lower deposit and loan rates than banks.

A simulated 50 percent reduction in credit union market share yields a 2.5 percent increase in unsecured non-credit card bank loan rates and a 5 percent increase in new vehicle loans. These estimates are conservative and can be extrapolated to other consumer bank loan products.

2. Taxes

While banks are owned by private shareholders, credit unions are nonprofit cooperatives that are owned by their members. This unique ownership structure helps to keep costs low for Alaska consumers.

The tax exemption also supports credit unions’ original mission of serving a common bond group of people of modest means. It’s not difficult to see how a business model that is less costly and provides better service than a bank can out-price one that pays taxes at the corporate level.

Previous research has documented clear consumer savings that result from the federal credit union tax exemption. For example, Hannan (2002) estimated the impact of credit union market share in local markets on bank/thrift deposit rates for money market accounts and interest checking. He found that a 50 percent reduction in the credit union share of the local deposit market would yield 12 basis point lower money market rates and 11 basis points lower interest checking rates.

3. Investments

As not-for-profit financial services cooperatives, credit unions return earnings to members in the form of lower loan rates and higher interest on deposits. This commitment to member service explains why so many Americans choose credit unions over banks.

Previous research has documented clear savings to both credit union and bank consumers due to the presence of credit unions in local financial markets. This analysis extends that work by simulating the effects of a 50 percent reduction in credit union market share on bank auto loan rates.

The results suggest that a significant percentage of auto loan interest saved by bank and credit union consumers in the state of Alaska is attributable to the federal tax exemption enjoyed by credit unions. Similar findings are demonstrated when examining the benefits to bank and credit union consumers on deposit products such as CDs, IRAs, KEOGH accounts, and savings, checking, and money-market accounts.

4. Food

Credit unions are a big part of the Alaska economy by providing consumers with lower prices. They also contribute to local economies by promoting and purchasing Alaska grown food.

During the Cash for Cans event, members of Alaska USA Federal Credit Union and their local credit unions contributed more than $73,000 to local food banks across the state. This was the second year of the fundraiser organized by the Alaska Credit Union League.

Alaska USA is changing its name to Global Credit Union, which will better reflect the organization’s growth into new markets. This includes a recent expansion into Arizona. The credit union says all existing card products, checks and credentials will remain in service following the April 3 name change. In addition to food drives, the organization helps support other food cooperatives like the Fairbanks Community Cooperative Market that operates as a grocery buying service and sells Alaska grown produce.

5. Community

Providing service to their members is a top priority for Alaska credit unions. In addition to philanthropy, they also support community organizations and events. Alaska USA Federal Credit Union recently donated money and time to an event at Mat-Su Career Tech High School that showcased its mascot Peri, the moose.

Previous literature demonstrates that consumer savings and gains result from the presence of credit unions in local consumer lending markets. Using conservative assumptions, this report estimates that, without the federal tax exemption, a 50 percent reduction in credit union market share would lead to an increase in unsecured bank loan rates by 2.5 percentage points and new and used vehicle rates by 5 percentage points.

These increases in interest rates are passed through to consumers who are not credit union members. A loss of the tax exemption would lead to direct losses to consumers of $15 billion annually.

How Credit Unions Strengthen Local Economies

As a not-for-profit financial services cooperative, credit unions are known for supporting local small businesses. They also help strengthen local economies through loans for businesses and homeowners.

Alaska USA Federal Credit Union was founded in 1948 — 11 years before Alaska became a state. It now has branches throughout the country and a growing number of international locations.

1. Better Rates for Members

A credit union’s focus on its members means they can offer competitive deposit and loan rates, reduce and eliminate fees, provide state-of-the-art online banking services, and have a commitment to exceptional member service. These are all reasons why many Alaskans choose to bank at their local credit union.

Credit unions like Northrim offer a variety of savings and checking accounts, credit cards, debit cards, and mortgage loans. These are all designed to help local families and businesses thrive.

Despite changing its name, Global continues to serve members who live and work across Alaska, the Pacific Northwest, San Bernadino County in California, and Maricopa County in Arizona. You can even join Global if you live in Washington, Idaho, or on U.S. military installations in Italy.

2. Higher Savings Rates

Credit union members save more than $5 billion a year thanks to higher rates on savings, interest checking and money market accounts. Auto loan rates are significantly lower at credit unions, and unsecured and credit card loans are also cheaper.

The economy is strong, and that’s reflected in Alaska credit union growth. The state’s largest credit union, Alaska USA, saw a 2 percent increase in its second quarter total assets compared to the same period last year.

During the federal shutdown, many Alaskans are relying on their local credit unions for assistance. Alaska has one of the highest concentrations of federal employees in the country, so it’s not surprising that credit unions are working on a case-by-case basis to help these workers during this difficult time.

3. Higher Loan Rates

In addition to offering better savings and credit card rates, many Alaska credit unions also offer lower loan rates than banks. These loans can help families, businesses, and farmers who otherwise would not be able to get financing from large banks.

Credit unions focus on the well-being of their members rather than making profits for stockholders. This philosophy makes them more customer-centric, as they can reduce and eliminate fees, provide state-of-the-art digital banking services, and offer competitive deposit and borrowing rates.

Unlike most banks, which serve a broad population over a large geographic area, credit unions often have a limited field of membership. Wailuku Federal Credit Union, for example, only serves people who live, work, worship, or go to school in their local community.

4. Stronger Local Businesses

Credit unions have long played an important role in helping local small businesses. Typically, CU’s offer more flexible loan terms and financial counseling services. Moreover, they can be a source of funding for momentary business requirements or as a way to control cash flow.

For instance, a CU can provide a line of credit to an Alaska business that gives access to funds without paying interest until the business uses the money. This allows the business to better manage cash flow and deal with unforeseen expenses.

This is exactly what a federal employee in Sitka did when he started the Alaska Pulp Corporation Credit Union. His efforts paid off, and the credit union now has members in all 50 states and 20 foreign countries. In fact, it recently changed its name to Global Credit Union to reflect this growth and an updated charter allowing anyone working for the Department of Defense worldwide to become a member.

5. Stronger Communities

Credit unions collaborate with a variety of local organizations to provide financial education and counseling services for residents. This helps them better understand the needs of their communities, which in turn allows them to deliver a more personalized service.

For example, Alaska USA Federal Credit Union encourages federal employees that are impacted by the shutdown to call or visit their local branch to talk about their options. The lender will work with them on a case-by-case basis to allow for loan payments to be deferred, lower or more manageable interest rates, and other flexible repayment terms.

Small businesses are the lifeblood of any community, and credit unions help them thrive by offering a range of affordable business loans and services. These help boost productivity, stimulate innovation and strengthen the economic stability of a community.

Exploring the Benefits of Credit Union Membership

Credit unions are not-for-profit financial cooperatives that offer a variety of banking products and services. They focus on keeping rates and fees low for their members.

But how are they different from banks? Here are five key ways. Credit unions are people-oriented, meaning they have a more intimate approach to their clients. This includes joining local charity initiatives and supporting startups and small businesses.

1. Access to Savings

Credit unions offer many of the same banking services as banks but with one significant difference: you are an owner. The initial deposit you make at a credit union doesn’t buy some service fee; it’s actually the purchase of a share in the cooperative, which enables you to enjoy the benefits that come with membership.

This member ownership allows credit unions to focus on what’s best for their customers and communities, rather than lining the pockets of outside investors. This results in lower fees, higher interest rates and a more personal approach to customer service.

Since many credit unions are local to specific areas, you’ll often find they support community initiatives and provide educational resources that teach money management skills. These personal touches can make the difference when you’re seeking an institution that truly cares about your financial success.

2. Access to Loans

Credit unions are designed to serve their members rather than outside investors, and that often translates into lower interest rates on loans and savings accounts. They also tend to offer lower fees on products and services, like ATM withdrawals.

To become a member, you’ll typically have to meet eligibility requirements, such as living in a certain area or working for a specific employer. You may also have to make a small initial deposit into a savings account to qualify.

But the main benefit of becoming a member is that you get to shape your financial institution’s vision and profits, instead of those of stockholders. You can also expect personalized service and a focus on your local community. Many people find this to be a significant factor in choosing a lender.

3. Access to Credit Cards

Credit unions operate on a co-op model, meaning members are part owners. This translates into lower fees, better interest rates and a bank that prioritizes the financial health of its customers over lining the pockets of outside investors.

Additionally, credit unions often offer a wider variety of financial products than banks including checking accounts, savings accounts and certificates of deposit. Some even have credit cards with a more competitive rewards program.

However, credit unions are not without their drawbacks. Most have fewer physical branches and ATMs and can sometimes offer less advanced financial services. This could be a problem for customers who want to have all of their banking needs in one place. They also tend to have more limited membership eligibility. For example, you may be required to live within a certain area or work for a specific company in order to join.

4. Access to ATMs

In addition to the financial perks, joining a credit union might also feel warmer and more familiar than a bank. Because they tend to be local or regional and service a specific community, the service you receive from them might feel more personalized.

Similarly, you might have more access to your money because credit unions participate in the CO-OP network and offer 30,000 free ATM locations (compared to brick-and-mortar banks’ 5,400 or so).

Being a member of a credit union means that you share its ownership, vision and profits, which can contribute to lower fees and interest rates. Plus, it can give you meaning and value beyond your banking experience. You might even be able to vote on the credit union’s board of directors.

5. Access to Online Banking

Credit unions offer a variety of online banking tools, including mobile apps. But they also tend to have more personal customer service.

That’s because members are part owners and vote in elections for the board of directors that runs the credit union. The profits that the credit union makes go back into the products and services it offers to its members rather than into the pockets of outside investors, which leads to lower fees, higher savings rates and great customer service.

Plus, some credit unions offer automatic alerts and text messaging to let you know when withdrawals hit or your balance drops. That’s a great feature to have if you don’t want to constantly log in to check your account. They’re also often more flexible than banks when it comes to helping their members, even if they have bad credit.

How Alaska Credit Unions Can Help

Credit unions operate to serve their communities, and Alaska is no exception. Alaska USA Federal Credit Union, for example, encourages its members who are affected by the shutdown to call or visit a branch.

Marketing Operations Manager Heather Resh was confident that Optimizely’s Digital Experience Platform could scale to meet the organization’s growth goals. The team’s initial success with Content Management’s landing pages further solidified their trust in the platform.

Cooperative Structure

The cooperative business model is an alternative structure that suits certain types and sizes of businesses. This type of business does not rely on personal profit to exist, but rather returns any surplus earnings to its members. This allows co-op owners to benefit from a return on their investment at the local level and also provides a unique tax advantage (sub-chapter T of the US tax code).

A cooperative’s democratic organization ensures that it serves its members. This is achieved through a “one member one vote” philosophy where the amount of a member’s monetary investment does not affect their voting power, which means smaller investors are just as important to the decision-making process as larger ones. Another key element is the transferability of shares. If a member-owner moves away, passes away or decides to stop participating in the cooperative they can sell their share to someone else. This also provides limited liability, which is a great protection for members.

Community Support

Credit unions are a community of people coming together for their common financial well-being. One member’s savings becomes another member’s loan, and this cooperative spirit extends to their communities as well.

This is why Alaska credit unions, like MAC FCU in Fairbanks and Denali Federal Credit Union in Anchorage, are urging their federal workers to contact them if they are struggling. They will help them find solutions such as deferred loan payments and lower fees for cashier’s checks.

The largest credit union in the state, Alaska USA, has changed its name to Global Credit Union this spring after merging with Spokane-based Global Credit Union last year. The change is meant to reflect the fact that the credit union is now a nationwide organization that serves members in every corner of the country and across the globe. In addition, the move will enable it to communicate its wider reach to prospective customers via geo-targeted content on its website.

Value for Your Money

Unlike banks, credit unions are not-for-profit financial services cooperatives. That means earnings are returned to members in the form of lower loan rates and fewer fees, as well as higher dividends on savings.

Credit unions may charge a membership fee, but this is usually waived if you meet certain criteria like being a resident of the community or a member of a particular employer or group affiliation. In addition to lower lending rates, credit card rewards and branch locations, full-service credit unions offer a wide range of services.

For example, Alaska USA Federal Credit Union offers a high-earning checking account and money market accounts, as well as a low-cost HSA (health savings account). Withdrawals are tax-free, so you can save for things like deductibles and other healthcare costs. This option is especially valuable if you have a high-deductible health insurance plan. The credit union also offers a wide array of mobile and online banking options.

Personal Service

Credit unions offer a full range of financial services, including checking and savings accounts, consumer loans, mortgage and auto loan financing, and credit cards. Credit unions also often provide lower deposit and lending rates than banks.

In our lab tests, the Alaska USA Federal Credit Union received high marks for customer service and ease of online transactions. The credit union also scored well in our evaluation of its mobile app and website usefulness, which factor into overall satisfaction.

The $12 billion-asset credit union is changing its name from Alaska USA Federal Credit Union to Global Credit Union beginning April 3. The change will better describe the global nature of its membership. The new name connects with a recent update to its charter that allows anyone working for the Department of Defense — anywhere in the world — to join, Alaska USA said. The credit union has branches in Alaska, Arizona, California, Idaho and Washington, as well as on U.S. military installations in Italy.

Anchorage Limos – Transportation For Special Occasions

limoanchorage.com is an Alaska-based company that provides transportation services for hotels, film production companies, and cruise liners. The company has a large fleet and offers competitive prices. It also offers discounted rates for military personnel and their families.

Uber, a ride-sharing service that has gained popularity in the United States, may have a tough time launching in Anchorage. Local taxi and limousine services want the company to conform to their licensing, inspection, and background-check requirements.

Aurora Limousines

Traveling in a limousine is a unique experience that provides comfort and luxury. It is also fun and exciting, and it makes a great addition to any occasion. Although it may cost a little more than regular car rental, the extra amount is well worth the service and security you get in a limo.

The team at Aurora Limousines offers a wide variety of services, including airport transfers, limousine rentals, and event transportation. They offer a large fleet of vehicles and professional chauffeurs who are trained to ensure your safety and comfort. You can book a limo for any occasion from their website or by calling their customer service.

This company has been in business for more than 20 years and is a leader in the Anchorage limo rental industry. Their fleet includes six-passenger limousines, a 22-passenger Excursion limo, and a 20-passenger limo bus. They also offer wedding packages and a VIP chauffeur service for special events.

BAC Transportation is an Alaskan limo service that offers a diverse fleet of vehicles and exceptional customer service. Their chauffeurs are highly experienced and knowledgeable about local and regional destinations. They can also provide a range of other services, including airport transfers, sightseeing tours, and party bus transports. In addition, they can handle corporate accounts and offer prompt monthly billing.

BAC Transportation

BAC Transportation is an Alaska-based company that offers limousine and bus transportation. Their team of expert chauffeurs provide a safe and convenient ride to their customers. They offer a wide selection of vehicles, including luxury SUVs and sedans, and hummer limos. They can even accommodate large groups of up to 40 people. They also offer airport shuttles, limos for proms and weddings, and sightseeing tours.

Their chauffeurs are highly experienced and well-trained to handle all types of events. They can be hired for any special occasion, such as a wedding, birthday party, bar crawl, or dinner date. They also offer a VIP airport limo service that allows passengers to be dropped off right outside the aircraft door on the jetway. This company is a great choice for people who want to experience the best of Anchorage.

This company has a reputation for exceptional customer service and fair prices. They treat every client like royalty. They also have a diverse fleet of vehicles, and they will customize their services to fit your needs. In addition, they offer 24/7 customer support, which is important when choosing a limousine company. They also offer a variety of packages for different occasions, and their website is easy to navigate. This company is a good option for those looking for an affordable limo rental in Anchorage.

Alaskan Splendor

If you want to enjoy a small group up close Alaskan wildlife tour, then this excursion is for you. You’ll be escorted by guides along the Alaskan coastline/bank as you search for/see various animals. They provide wet weather gear, which includes a coat, bibs and boots. This is a great option for kids who are bored of sunning on the deck or if the adults need some alone time.

This company has a large fleet of fully loaded vehicles and is known for their top-notch customer service and Hollywood treatment. They also offer flexible packages that can fit any budget, and customers can enter their trip details on the website to get a quote.

The company has been in business for 10 years and offers limo rental services 24/7 every day of the year. Their limousines and party buses are available for proms, weddings, birthday parties, pub crawls, wine tours, concerts, and more. They also offer airport shuttles, cruise ship limo transports, and corporate transportation. They also have a number of different limos and SUVs to choose from, including a stretch Hummer.

Alaska is an amazing place to visit, with pristine wilderness and many heritage parks. Located in the heart of Alaska, Anchorage is home to a variety of cultural sites and is a hub for many different activities.

Anchorage Limo Service

When it comes to planning a birth day party, you can make the event that much more special by using Anchorage Limo Service. They will help you celebrate in style and will also be able to provide some great drinks for the occasion. These services are extremely affordable and will really help to make the party that much more complete.

Known for its fair prices and Hollywood treatment, Limo Service Anchorage handles limo and town car rentals in the area of Anchorage. They are a full-service group offering professional drivers and a large fleet of fully loaded vehicles. They can accommodate small and large groups for weddings, parties, tailgates and sporting events, bar hopping, concerts, dinner parties, business meetings, and more.

The company is a family-owned and operated business that provides professional chauffeurs and luxurious limousines for all types of occasions. Customers can book their service by filling out an online form on the website. They offer a wide range of packages that can include food, drinks, and even a live DJ. In addition to their limousines, they also offer mini buses and coach buses for large groups. They can also be hired for airport transportation, cruise ship transfers, and corporate accounts. Customers can also find information about the company’s history and policies on their website. They also feature a BBB A+ rating and links to resources for planning a night out of dining and entertainment.