Credit Unions on the Financial Landscape: Geographical Strategies of Expansion and Service

Recent legislative efforts to protect credit unions against unfavorable legislation reflect the growing importance of credit unions in the U.S. financial services sector. Efforts to address new technologies, combined with deregulation in financial services, have led changes in the field of membership rules governing how credit unions are chartered and how they may grow. These regulations have clear geographic implications for defining communities and for offering financial services and education to particular segments of the population. This paper briefly reviews the history of credit unions, then examines the Credit Union Membership Access Act of 1998 (CUMAA) and the National Credit Union Administration's (NCUA) interpretation and implementation. A case study of two Florida locales is used to analyze the changes in credit union charters and their expansion in the rapidly changing market. The results point to the possibility that credit union expansion as currently legislated may be an effective way to insure access to financial services.