Retail credit unions belong to one of the 27 corporate credit unions. The 27 corporate credit unions belong to the US Central.
http://corporatenetwork.org/default.asp?content=cn_corpglanceWhat is a Corporate Credit Union?
A corporate credit union is a credit union for credit unions – a not-for-profit financial cooperative that serves retail credit unions within its field of membership. Corporate credit unions (or “corporates”) emerged over 30 years ago from the same cooperative spirit that gave rise to the American credit union movement. Similar to retail credit unions, the nation’s 27 corporates are guided by volunteer boards of directors, are totally owned and directed by their member/owners, which, in the case of corporates, is retail credit unions, and were organized for the express purpose of providing low-cost financial services and competitive investment and lending rates to their member/owners. Profit is not the driving force; rather, corporates exist solely for the benefit of their member credit unions and, ultimately, all consumers – a key difference from other financial service providers. There is a unique philosophy of cooperation, self-help and economic democracy among the nation’s corporate credit unions and retail credit unions.
Today, corporate credit unions continue to fulfill their traditional roles while evolving to meet the growing demands for a full range of financial, investment, credit, funds-transfer, settlement and educational services by the credit union industry. Collaboration and partnerships between corporates of all sizes allows many services to be developed in a cooperative, low-cost/high-value manner that ultimately saves credit unions real dollars. By utilizing corporate credit unions, the credit union industry achieves collective cost-savings, synergies and competitive advantages. Approximately 99 percent of the nation’s 8,400+ credit unions use their corporate credit unions for one or more services, and these credit unions serve over 90 million American consumers. Credit unions and their members remain corporates’ only focus.
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Three Tiers of Strength
A third level of strength is added to credit unions in the form of U.S. Central – the corporates’ corporate. Together, U.S. Central and corporates comprise the Corporate Credit Union Network (Corporate Network). Credit unions depend on corporates for competitive rates and a full range of financial services. Corporates, in turn, look to U.S. Central to provide efficient products and services they can offer to their members. By facilitating access to numerous financial, payment and settlement services, corporates play a significant role in the efficient exchange of funds throughout the credit union system and consumer sector. Support from the Corporate Network makes it possible for anyone to walk into his or her credit union and find high rates on deposits, low rates on loans and minimal fees for services. The more than 90 million Americans who use credit unions benefit from the synergy of the Corporate Network through increased back-office efficiencies, financial safety and soundness, and efficient and cooperatively priced payment services.
Corporates’ strength is their ability to leverage economies of scale in the areas of item processing, payment systems, settlement, investments and liquidity for their members’ benefit. They serve as an integral link in the chain of financial transactions initiated at the credit union member/consumer level.
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