It's an idea that evolved from cooperative activities in 19th century Europe.
Members are, after all, borrowing their own money and that of their friends.
These principles still govern most of the world's credit unions. As the 20th century began, the credit union idea surfaced in Canada . The two men helped organize public hearings on credit union legislation in Massachusetts, leading to passage of the first state credit union act in 1909. Growth was slow, however. Fewer than 10 states passed credit union laws, many unworkable.