The article focuses on one of the most interesting and under-researched topics in the history of banking in Russia, i. e. history of formation and operation of mutual credit societies. The focus is on identifying the specifics of creation of Verkhneudinsk mutual credit society (1911–1917), the first financial credit institution of its kind across the Western Transbaikalia, which was a strategically important transboundary region of the Russian Empire. Description of the initial phase of its activities, review of relationships with other banking institutions in the region, and the role of the society in the development of industry and trade in the region were determined. The research was based on sources published, i. e. Statutes, reports and balances of the Verkhneudinsk mutual credit society and unpublished materials of the State Archive of the Republic of Buryatia containing information on the activities of the financial institution. The authors’ work is based on the principles of history, science and objectivity, a comparative historical method, and a regional-oriented approach (taking into account the cross-border location of the object of research), which made it possible to analyze more fully the history of the Verkhneudinsk mutual credit society, created on July 1, 1911 and managed in a short period of time to integrate firmly into the financial market of Western Transbaikalia. An analysis of the organizational structure of the institution, the rights and obligations of its members, the main credit and financial transactions, and priority areas of activity allowed the authors to conclude that collegial management with the participation of people without special financial education, as well as the possibility of obtaining a loan only by members of the company is significantly limited the activities of the Mutual Credit Society. At the same time, financial closures and active participation in the management of all members have greatly reduced business risks. The research revealed that, despite the relatively small financial resources and tangible competition from the branches of Russo-Asian and Siberian Commercial Bank, the Verkhneudinsk credit society promoting entrepreneurial activity of citizens did not have only a positive impact on the economy of the Western Transbaikalia but also it contributed to the strengthening of Russian influence in the transboundary region of Inner Asia.