The number of small communities in Alabama is on the rise, but there’s a catch. Access to local financial services is becoming increasingly scarce. As per the Federal Reserve Bank Desert Dashboard, there are about 1,181 people per census area, and 153 of these areas are now labeled as “bank deserts.” Essentially, this means that residents are required to travel over 10 miles to access essential financial services.

Additionally, there are another 302 locations at risk of becoming bank deserts. In total, nearly 40% of communities across Alabama are facing decreased access to traditional banking options.

To address this gap, credit unions are stepping up. They’ve been proactive in opening new branches in rural and underserved regions, providing local employment to better serve their neighbors.

“We’re really looking forward to serving our customers,” says Bobby Michael, the president and CEO of Credit Union All. He emphasizes that their aim is to be a trustworthy resource for local residents, fulfilling their mission in the process.

The impact of these institutions is noticeable across Alabama, from tiny towns to high school campuses. At George W. Long High School, a branch run by student credit union members is doing more than offering financial education; it’s the only financial institution in the local area. Principal Ben Baker observes its influence daily.

“It’s a win-win since this community has lacked financial institutions in the past,” he reflects. “It’s a success not just for our students but for the community itself, enabling us to foster local business exchanges.”

Students like Austin McDaniel, who helps manage the branch, gain valuable hands-on experience. “Every day, I come in with my classmates and interact with community members while handling transactions,” he shares. “The credit union has provided us with lessons on financial management, including budgeting and saving.” 

Moreover, credit unions serve as a backbone for small businesses in these areas. According to a recent report, Alabama credit unions issued over $655 million in small business loans in 2023.

Business owners, like Chris Claunch, understand the significance of these loans. “In smaller towns, relationships matter,” he notes. “At Valley Credit Union, we found more than just funding for our equipment; they took the time to really understand our business and what we aim to achieve.”

Credit unions aren’t just financial entities; they are member-owned and community-focused, dedicated to fostering long-term relationships. In places where other banks have closed their doors, credit unions are stepping in to make a real difference.

However, their work isn’t done in isolation; they collaborate with educators, business owners, and community leaders to uplift Alabama from within. This collective effort is crucial, as lifting each other up allows everyone to progress together.

Essentially, their commitment extends beyond just operating within Alabama. It’s deeply rooted in the community.