Letter to the editor

It’s Time to Modernize the Iowa Credit Union Act

Dear editor:

The 1920s was certainly a time of change. The television had recently been invented, the Model T could travel up to forty-five miles per hour and women could now vote with the passage of the 19th amendment. And in 1925, The Iowa Credit Union Act was created and passed, which gave Iowans more access to convenient and affordable financial services. Over the century that has since passed, businesses across all industries have evolved their business models in order to stay competitive in the market. Without this, they perish.

Evolution of business models in the financial space is no different. For example, banks couldn’t operate branches across state lines, they were prohibited from engaging in the insurance business and they couldn’t surcharge on ATM machines decades ago. Over the years, policymakers have updated these laws to help financial institutions adapt to the changing times.

During the 2022 legislative session at the Iowa Statehouse, the Iowa Banking Act was significantly updated by the Iowa legislature. Then in 2023, a bill was introduced to update the Iowa Credit Union Act. That bill passed the Iowa House 86-3 with clear and strong bipartisan support, but it stalled in the Senate because of opposition from the banking industry in our state. Iowa needs both strong banks and strong credit unions, and the credit union code should also be updated.

1.4 million Iowans are served by credit unions, and those members count on their credit union to be safe, sound, and modern with respect to the services they offer. Banks have evolved and their code has been updated. The same needs to be done for Iowa’s credit unions.

Greg Hanshaw, President & CEO Community 1st Credit Union and Fairfield resident

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