As the 2016presidential and congressional elections draw nearer, credit unionsand their representatives undoubtedly will be meeting with anynumber of potential candidates for office. For those conversationsto be as productive as possible, it behooves the industry to focuson the market they most naturally and effectively serve: The middleclass.

Middle-income Americans, which is to say those with householdincomes between $40,000 and $150,000, already like credit unions.Harris and Gallup polls, as well as those conducted by theindustry, show that segment of the American population preferscredit unions to banks. More than 85%report they trust creditunions.

Studies from bankrate.com and similar services also show thatmany credit union products simply offer better value formiddle-class customers, who also happen to be more likely than thewealthy to put the bulk of their savings in depositoryinstitutions, rather than in the markets.

This shouldn't be surprising. It's long been true that creditunions' sweet spots are found in free checking (share draft)accounts and automobile loans, two products aimed squarely at themiddle-class market. The so-called “supersavers” – conservativeinvestors who put aside more than 15%of their income – also tend tocome from the ranks of the middle class, representing a naturalmarket for credit union share certificates and thehigher-than-banks interest rates they offer.

By contrast, the wealthy have access to money-market accountsand often buy their cars in cash. At the other end of the market,the working poor may not have sufficiently consistent incomestreams to allow them to maintain checking accounts. Many can'tafford cars at all.

The upscale market may present a tempting target for some creditunion managers, but few will do well by heading in that direction.Some credit unions may offer loans to help members buy yachts,something my credit union offered me, and of course thereshouldn't be any legal prohibitions against doing so. Others mightoffer sophisticated financial advice through CUSOs or set up shopin the ritziest neighborhoods. But rare is the credit unionthat will find a competitive advantage in going head-to-head withglobe-spanning banks and investment firms in an effort to secure awell-heeled clientele.

Likewise, while helping the poor and underserved is a keymission of the credit union movement, it's quite difficult to makea sustainable business serving that market alone. We've seen whatit looks like when financial institutions focus intently on workingwith the down-and-out, and the results tend to be predatory loansand usurious rates. Not only are such products inconsistent withfederal and state rules for credit unions, but they also violatethe very spirit of a democratic member-driven cooperative.

Credit unions that are successful in developing new programs toassist those of modest means or in doing away with field ofmembership restrictions that keep credit unions out of underservedareas should certainly be commended. But such efforts can't be thewhole of the story, either financially or politically.

Unique among financial services providers, credit unions can putforth messages both of cooperative business, which appeals to theleft, and of voluntary free enterprise, which appeals to the right.To best advance those messages in the political arena, creditunions need a new political strategy that emphasizes what they cando for middle-class families.

This might require putting slightly less emphasis on someregulatory changes that long have ranked high on the industry'sagenda. Most families never need a small business loan, forinstance. But the more successful credit unions are in associatingtheir movement with solid, working, voting Americans, the greaterthe dividends will be in getting candidates elected who are willingto listen to the industry's concerns.

Eli Lehrer is president of Washington-based think tank RStreet Institute. He can be reached at [email protected] or (202)525-5719.