Small Credit Unions and why we MATTER.

Big credit unions are great, we love them, they are a great alternative to big-bad-banks. At the same time,  small CUs are kinda different, and in some ways we provide special unique positive impacts, that big institutions often just can't.  We fill a niche serving people and communities that are sometimes overlooked by big banks.   The fact is, many people prefer small institutions with familiar faces, who know their names.    Naturally - small credit unions are often more likely to provide  more personalized service, as a function of our small size.  In addition, small credit unions often offer unique and specialized products and services targeted to their "micro-communities." 

Consider some of these examples from my own credit union, the *only* small credit union in the Tri-Cities (there were 6 other small credit unions back in the 1980s, now we are the only one left). Note: These statistics were gathered and assembled by myself:

What about specific examples of community impact in the lives of real people?

Connection Credit Union, Silverdale, WA

Small Credit Unions, What Difference Do They Make?

A Fresh Start: Beyond Prison Bars, by Scott Prior, CEO of Connection Credit Union

In a financial system where big banks routinely deny services to people with criminal records—citing poor credit, perceived risk, or rigid policies—small credit unions like Connection CU in Silverdale, Washington, are making a profound difference. The Banking Beyond Bars program, launched as a pilot in December 2024 in partnership with a local non-profit, provides a true "fresh start" for individuals recently released from incarceration, a group frequently overlooked and underserved by traditional institutions.

Without any formal marketing—relying entirely on word-of-mouth through the "convict referral network"—the program has already attracted 130 participants, with 80 becoming active members. As CEO Scott Prior observes, "I think the fact that I have not marketed it AT ALL as it was a 'pilot group' and I got 130 participants (all through the convict referral network) says a lot about the potential." This organic growth highlights both the urgent need and the deep trust earned when a small, community-focused credit union steps in where others won't.

The program begins with three in-person financial education classes over consecutive weeks, covering the banking system, personal financial responsibility, and credit pitfalls. Graduates qualify for membership regardless of credit history, opening free checking and savings accounts with no minimums or fees. Each participant is paired with a certified Money Mentor for 12 to 14 months of personalized coaching on budgeting, goal-setting, and credit repair. Progress unlocks non-predatory credit products: a $500 unsecured credit card at a fixed 13.5% rate after a budget cycle, and a starter auto loan up to $10,000 at 10% (with potential improvements) after another review—complete with guidance to secure fair deals and avoid common traps.

The impact shines through in the heartfelt words of participants:

"Thank you for trusting and believing in me and taking a chance on me when I know no one, and I mean no one else would. You’ve helped save my son and I will forever be grateful to you for this opportunity."

"You’ve truly saved my family just in the nick of time. Now he has time to get his income up and get caught up all because of the grace you allowed me to help my family. Now he won’t be drowning. Thank you again so much from not just myself but from my son. Hope you have a wonderful day and know you truly are changing lives."

"I want to thank you again for this opportunity. I think this program is amazing. Thank you and your team for looking out for people most despise. It's people like you that really help push us forward and really help our success. STAY YOU cause people like you are one in a million."

By prioritizing people over profit, Connection CU fills a critical gap left by big banks, reducing barriers to reentry, fostering financial independence, and offering dignity and support to those society often writes off. Programs like Banking Beyond Bars—now trademarked and ready for sharing with other small credit unions—demonstrate why community-focused institutions earn their tax-exempt status every day.

Connection CU is a small credit union in Silverdale, Washington. They have assets of about $38 million and focus on serving their local community. For more information, contact Scott Prior, CEO, at scottp@connectioncu.org or 360-307-6400.