The Credit Union Difference

Customers and ownership

• Credit unions are ethical financial co-operatives owned by their members.
• Eligibility to become a member is unique to each credit union (its common bond) and is determined within their rules.
• Each member holds a £1 share in the credit union.

• Banks have customers rather than members
• Customers may not be owners in the organisation
• Banks are owned by investors/shareholders who may or may not be depositors with the bank.

Main purpose

• Credit unions are not-for-profit organisations, existing primarily to serve the needs of their members and the communities in which they operate.
• Any surplus funds generated by a credit union are paid back to the members as a dividend
• Loan rates and investment in new and improved services

• Banks are in business primarily to generate profits for their investors/shareholders

Control

• Credit Unions are run by members, for members
• Each credit union has a volunteer Board of Directors.
• The Directors are all members of the credit union and are elected by the membership to serve them.
• When it comes to voting, each member of the credit union has one vote, no matter how much they have in savings.

• Banks are governed by paid directors.
• Neither bank directors nor shareholders need be customers of the bank or based within the community the bank serves.
• When it comes to voting, only the investors/shareholders of the bank can vote.  Bank customers have no vote.