 The Credit Union Movement  The system of co-operative credit was first devised in Germany by Friedrich Raiffeisen during the mid-nineteenth century.While mayor of a small village called Weyerbusch, Raiffeisen was appalled by the poverty of the local farmers who were forced into debt by money lenders during the lean season, and eventually had their properties repossessed due to their inability to meet their loan repayments caused by high interest rates. Raiffeisen began to teach the farmers how to pool their savings in a co-operative effort. He purchased seed on credit which was then distributed among the farmers. Those who could pay him did, while others paid him when they obtained an income from a good season. Raiffeisen also advised the farmers to plant more seed than was needed and to use the potential earnings as collateral against their debts. By utilising these methods Raiffeisen pioneered co-operative credit and led to the organisation of the first Credit Union as Heddesdorf, Germany in 1864. The idea then spread to Canada with the help of Alphonse Desjardins in 1900 and eventually into the United States during the early twentieth century. The principles Desjardins adopted when establishing the first Credit Union in America were:
Australian servicemen who served in Canada during World War II brought the Credit Union idea home after the war, and early Credit Unions formed in Australia in 1946 were based on Anglican and Roman Catholic Church Parish Groups. However the Australian Credit Union movement did not take off until the 1960’s when Father Marion Ganey, a Jesuit priest from the USA, pioneered the Credit Union movement throughout the South Pacific region. During the 1960’s and 1970’s he held many lectures on the benefits of Credit Unions over conventional banking institutions, and it was through the efforts of Father Ganey, that prompted a local dairy farmer by the name of Ray Lyons to lead the charge toward the formation of the Warwick Credit Union. Warwick Credit Union Story The Warwick Credit Union Ltd has become a very successful community owned financial institution with an excellent reputation throughout the Credit Union industry and the local region. The Warwick Credit Union was formed to provide a financial service which would benefit the average person and retain money in and for the benefit of the community in an era when the big banks were a very expensive option if you were a small business person or woman trying to borrow money. This focus on the individual has been key to their success. Supporting local towns and communities is an important part of Warwick Credit Union’s philosophy. Their branch network developed through towns in Warwick and surrounding shires, the Warwick Branch opened in 1973, Killarney in 1983, Allora in 1992, Rose City Shoppingworld 1998 and Inglewood in 2002, replacing the agency which had been operating since 1992. The introduction of technologies such as phone banking (1996), internet banking (2003) and ATMs means that WCU members have access to their funds 24 hours a day, wherever they are. In March of 2005 the Warwick Loan Centre, a division of Warwick Credit Union, was opened as a specialist lending facility. In mid 2006, Warwick Credit Union joined with 20 other Australian credit unions as part of the Mutual Capital Funding Initiative which raised $100 million capital for the group while preserving their mutual status. This venture was awarded the Structured Finance Deal of the Year Award by the Financial Review’s CFO Magazine. 2006 also saw the Credit Union recognised by Cannex for their Cash Management and Business Lending products. In November 2006, the Warwick Credit Union joined the Dalby community when they opened their new branch at Dalby Shoppingworld. Like a number of regional mutual financial institutions, the credit union’s aim was to benefit the community of Warwick and the surrounding district by helping those who could not afford to borrow from banks and to encourage them to save and borrow through the credit union, keeping the money earned in the district and circulating among members. The philosophy of the Warwick Credit Union has not changed since its formation - members are the reason for the existence of the credit union. At the end of its first year, back when the national average income was $77 a week, it had $23,000 in deposits and a loan limit of $600. In the years since its formation, Warwick Credit Union now has more than $116 million in deposits and $105 million in loans with many local businesses are financed by the credit union at a competitive interest rate. 10,000 members, 40 employees, and $133 million in assets contribute to the prospect of continued success to enhance the quality of life for its members and local community. Warwick Credit Union’s ongoing commitment to supporting community events has been key to the development of the credit union over the last thirty-six years. Fast-forward through to 2006, current Warwick Credit Union General Manager, John Brown, emphasises the importance of supporting members and the local community through sponsorship and putting funds back into the community. “Since the beginning of the Warwick Credit Union in 1970, support of community organisations has been of great importance to us. “Our first sponsorships were to the Football Club and the Warwick Basketball Association, and today we actively support 120 organisations and over 140 events throughout the Warwick, Killarney, Allora and Inglewood districts. “Our involvement with so many different organisations reflects the diversity of our membership and their work within our community. A rural community cannot function without the hours of voluntary labour contributed each year, and we strive support the work of our members. We continue to support non-profit organisations by waiving the membership account-keeping fee to those organisations. “From the Allora St Patrick’s School Trivia Night to the Warwick Credit Union Warwick Cup, we support events large and small and the commitment of local organisations to improving and contributing to our community,” Mr Brown said. Warwick Credit Union’s Annual General Meeting is the highlight of the district’s events calendar with over 250 members from nearby towns using the complimentary bus service to attend. Warwick Credit Union was founded and directed by men and women who were part of the close-knit community of the Warwick district and who believed in the initial philosophy of helping others. They always put the best interests of the member first, often making their judgement on their personal knowledge of the member seeking a loan. Warwick Credit Union credits its staff, both past and present, who through their commitment and professionalism have provided the quality service that sets them apart. The real success of Warwick Credit Union has stemmed from the support of the people of Warwick, Killarney, Allora, Inglewood and surrounding districts. They built the Warwick Credit Union to be the thriving enterprise it is today and have seen the benefits of an organisation whose only purpose is to serve its members with an ongoing commitment to better rates and better services. |
