Guest Editorial: The role of Credit Unions in Nebraska
Credit unions have always stood apart from other financial services providers because of how and why they were first built starting in 1864. Credit Unions are formed by people — workers such as manufacturing employees, farmers, teachers,firefighters, church groups and more to pool their resources and provide low-cost credit to one another. That origin story still defines credit unions today as a story of financial empowerment for communities. With 1/3 of all Nebraskans having a membership in a credit union, it is important to understand their role in the growth and prosperity of our community.
That difference matters for Nebraska consumers – including the more than half a million credit union members living across the Cornhusker state. As not-for-profit financial cooperatives, every single member of a credit union benefits from their credit union’s tax structure because profits are returned to them as member-owners. We all know that having access to reliable and affordable transportation to get to school and work is vital in helping individuals and families build financial stability. In Nebraska, the median auto loan rate for subprime borrowers in 2024 was 1.5 percentage points lower on a credit union loan than through a for-profit institution. Over the life of a typical loan, that difference adds up to more than $2,300. At a time when affordability is important, working-class Nebraskans need access to the significant savings that credit unions provide.
According to reports from Equifax, Credit unions have remained consistent in their approach to serving members, leading to their success in capturing shares of originations in various markets. According to TruStage’s 3rd quarter 2025 Trends Report, loan growth across the credit union industry reached 3.9% over the past year, outpacing the broader consumer credit market. America’s Credit Unions analyzed NCUA and Federal Deposit Insurance Corporation (FDIC) data, and it shows that the majority of credit unions – at every asset size – make approximately 75% of their loans to households, while the percentage is less than 30% for for-profit institutions and less than 50% for most community financial institutions. Over the past decade, credit unions in Nebraska alone have delivered $596,875,137 dollars in financial benefit. The money deposited in a credit union tends to stay in the community. This activity supports and drives local economies.
Next, let’s address the question of taxes. While not-for-profit credit unions do not pay the federal corporate income tax on profits (because profits are returned to members), they do pay a plethora of other taxes including property taxes, payroll taxes and more. In previous research, the Platte Institute cited that property taxes are the “Cornhusker State’s single largest tax source”. It’s important to clarify that all credit unions in Nebraska pay real property taxes which help to fund the local communities that they serve. Nebraska credit unions paid $36 million in direct federal & state taxes last year alone, and the economic activity they generated was responsible for another $32 million in indirect taxes.
In review, Credit unions’ structure and mission put people first in everything they do. The value credit unions provide allows hard-working Nebraskans to get the financial services they need and deserve, and the impact of these not-for-profit entities benefits ALL consumers – in every corner of our state.
*The opinions expressed in this blog are those of the guest writer and do not necessarily reflect the official policy or position of the Platte Institute.