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The end of the year is marked by many celebrations. This list can include personal and professional achievements, celebrations, the arrival of a new year… For financial cooperatives there is an extra reason to celebrate, as December 28th is National Credit Cooperative Day. Established by Law 12,620/12, the date was created to honor this model of financial institution that unites people with the same objectives, and which is undoubtedly the future of society. And for Sicredi, this occasion has a special flavor, as it is the anniversary of the founding of the first credit cooperative in Brazil, Sicredi Pioneira RS, in Nova Petrópolis/RS, which turns 122 years old.
But it’s not just Sicredi that we’re going to talk about in this article. We will highlight the benefits generated by the actions of all cooperative financial institutions. About how this philosophy of life reflects on local development and transforms realities. Currently, there are more than 750 cooperatives operating in Brazil, which form the largest physical service network in the country, with almost 10 thousand branches. In more than 800 municipalities, cooperatives are the only financial institutions available. There are approximately 17.3 million members, people who trust this model and its purpose.
We have said countless times that credit unions have a vocation for developing communities and a recent survey released by the OCB System confirms this statement. The study, carried out in partnership with the Fundação Instituto de Pesquisas (Fipe) with support from the National Advisory Council for the Credit Branch (Ceco), gathered data from 2018 to 2023 to measure the relevance of the segment in Brazil and its benefits. The data is impressive.
The study confirms that the presence of credit unions generates positive results in the economy, creating more jobs and generating revenue for governments – through tax collection -, in addition to boosting the agribusiness sector, promoting financial inclusion and reducing poverty. Regarding this last item, the data materializes what we call the transformation of realities.
According to the research, in cities where credit cooperatives operate there was a drop of 20.5 families per thousand inhabitants in the Single Registry and 24.8 families in the Bolsa Família Program, which highlights the role of cooperatives in improving people’s quality of life.
Another piece of information found was the multiplier effect of cooperative credit. Every 1 real of credit granted generates R$2.56 in economic activity, R$1.17 in added value and 50 cents in the wage bill. Furthermore, for every R$1 million in credit, 22.8 new jobs are created, further strengthening the job market and income generation, resulting in socioeconomic development.
In macroeconomics, the effects are also noticeable. According to the study, cities that have credit cooperatives saw an increase of R$3,852 in Gross Domestic Product (GDP) per capita, equivalent to 10% of the national average in 2021. Job creation stands out, with 25 .3 new jobs per thousand inhabitants, 15.1% above the national average. In entrepreneurship, the indicated increase is 3.2 more establishments per thousand inhabitants, 15.6% of the Brazilian average.
Without a doubt, we are talking about a system that is the future of a society that is committed to values such as cooperation, equality, justice, in short, the well-being of all. And for those who are not yet part of it, we close this text with an invitation to get to know financial cooperatives. We’re sure you’ll be delighted and ask yourself: why didn’t I join sooner?
*João Spenthof is president of Central Sicredi Centro Norte and vice-president of OCB/MT (Organization of Brazilian Cooperatives in the State of Mato Grosso)
