SPONSORED SPECIAL SECTION | REDWOOD CREDIT UNION
The credit union difference How these local financial cooperatives differ from traditional banks
R edwood Credit Union will celebrate its 75th anniversary this year. It was in 1950 when a handful of county employees formed Sonoma County Employees Credit Union, the forerunner to RCU, which has become one of the largest local financial institutions, now serving nearly half a million people. Yet even after having grown into one of the most well-known businesses in the North Bay, many unfamiliar with its services still ask: How is a credit union different from a traditional bank? While credit unions offer similar services as banks, their member-driven cooperative model sets them apart and allows revenue to be reinvested into the credit union, to the benefit of its membership. A credit union’s “field of membership” can be described as the communities it is chartered to serve, Mishel Kaufman, chief operating and risk officer at RCU, explains. Some credit unions serve specific groups or industries—like the military or farmers—while others, like RCU, are geographically based, serving a certain region. RCU’s membership extends from nearby Sonoma, Marin and Napa all the way to San Francisco, Mendocino, Lake, Contra Costa, and Solano counties. It’s easy to join, and anyone who lives, works, or owns a business in any of the above-mentioned counties can become a member and bank with RCU. Immediate family of current RCU members can also join. It’s also important to note that credit unions are federally insured to the same levels as banks, only the insurance is provided through the NCUA, which is the credit union industry equivalent to the FDIC for banks. Credit unions are not-for-profit, meaning they do not distribute profits to private stakeholders, whereas traditional banks are for-profit— owned by private investors, governed by a board of directors chosen by stockholders. At credit unions, the organization’s income is not dispersed to any shareholders, but instead invested back to its members and into the organization. Or, as Kaufman puts it, “[a credit union’s] primary focus is serving our members' financial needs.” “Instead of being driven by profits and shareholders, credit unions are entirely owned and governed by our members, and all profits are returned to the membership through better rates, lower and fewer fees, and By Ana Fingerson
expanded services and locations,” she explains. Additional ways earnings are invested back to the membership include developing tools and services that make managing money easier and more convenient—such as enhancements to digital banking, additional ATMs, credit card rewards, and services they offer such as insurance, wealth management and even an auto dealership, RCU Auto Services. Kaufman says RCU is “one of only a few” financial institutions that offers such services like its in-house insurance agency, full-service business banking, and a licensed auto dealership. “People can take care of all their financial business in one place [and] save money,” she says. “Our member-owned, not-for-profit structure truly sets us apart at a time when people are looking for a safe, secure and trusted financial institution,” says Kaufman. With $8.6 billion in assets, RCU is the largest credit union in the North Bay—a position the credit union has achieved, says Kaufman, by adhering to a set of values that have built reliability and trust with its members. “The credit union conducts regular membership surveys to gauge quality of service and find areas for improvement,” Kaufman says. Recurring themes from the surveys include feeling valued, having a sense of community, and easy and personalized banking experiences. “Members often mention their appreciation for how a credit union is different than a traditional or online bank and how their contributions are put back into the organization and our communities for their benefit instead of stockholders,” adds Kaufman. “They also appreciate how we take the time to listen, show them we care, and help them to succeed.” The credit union takes particular pride with survey responses that reflect a feeling from members of being valued—a sense of being more like a person than a statistic, at least compared to national or online financial institutions that don’t have a local connection to the community. The ability to call and speak with an RCU team member who’s local just like the member is important because products and services are tailored to each member’s needs, allowing them to be handled faster and with the confidence their money is secure in their local community. Kaufman describes this as “the RCU difference.” n
2024: RCU named to list of America's Best Credit Unions for 2024 and 2025.
2017: RCUCF raises $32 million for North Bay fire relief.
2007: RCU moves to its new administrative offices.
2023: Napa campus with new branch and second Grove Cafe opens on Devlin Road.
2025: RCU celebrates 75th
2004: Brett Martinez named President & Chief Executive Officer. RCU reaches $1 billion in assets.
2024: RCU named to Newsweek's list of America's Best Credit Unions for 2024 & 2025.
2020: Lake County branch opens.
2007: RCU completes new Administrative Offices at 3033
2017: RCU Community Fund (RCUCF) raises $32 million for North Bay fire relief.
anniversary with 485,000 members, 950 team members, and $8.6 billion in assets.
Cleveland Avenue in Santa Rosa. First Napa branch opens.
January 2025
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