The National Credit Union Administration
It apparently came as a surprise to many of you that SECU was created in 1937 as an employer sponsored benefit - like most other credit unions. A mutual investment/borrowing "club" to give North Carolina state and public school employees access to consumer credit. As we have seen, it really wasn't a true financial institution, definitely not a commercial bank. Credit unions were something different in the world of finance - different structure, different goals, different purpose.
SECU as an "employee investment/borrowing club" quickly evolved into a "family thing"; as it became difficult to justify forcing retirees or widows and children of members out of the membership. All members continued to have equal rights and the ideas of "once a member, always a member" and family memberships set the stage for growth.
Lending rates were low, decisions quick; savings rates were highly competitive. Dealing locally with folks who knew you and high quality ("we know you by name"!) service also fueled the fire. SECU treated you fairly and with respect - as an equal. You were, after all, among friends, family and coworkers. SECU "had your back" financially, that's why they were there.
Remember that the only money SECU had to lend came from the savings dollars of other members! If something "went wrong" at SECU, losses were deducted from your savings balance. All members shared equally in operating and lending losses. Your savings (share) deposits were uninsured at SECU! As a member, you were directly at risk of loss. You stood the chance of losing your life savings! Members paid close attention to their credit union - with good reason
Then along came deposit insurance via the federal government... and things began to change...
NCUA, the feds arrive... a change for the better?