Credit Unions Vs Banks: What’s The Difference?
With increasing uncertainty regarding regulations of banks, credit unions have emerged as a popular alternative to help people manage their financial needs. But, what is it about credit unions that sets them apart and makes them different from the traditional banks? Business Structure Banks are for-profit financial institutions that can be large or small, and operate on either a national or local level. Mostly, banks are public companies and are led by paid board members. However, these board members aren’t necessarily the depositors themselves. Because of their public status, the bank’s shareholders are the ultimate owners and are the ones who buy company stock as a form of investment. For their investments, they also expect a financial return. Credit unions, on the other hand, are not-for-profit financial cooperatives and are usually small and local. In this business structure, members agree on all of the credit union’s decisions and work together to oversee business. Unli