When it comes to choosing a financial institution, you’re typically limited to two options: large banking corporations or credit unions. With large banking corporations serving a wider portion of the population, credit unions act as institutions that serve a specific segment of the population.
With both offering similar services like savings/checking accounts, mortgages and personal loans, what sets them apart?
The big difference is that credit unions are member owned, so profits are not necessarily the driving force. This means that they only need to make their members happy, allowing them to offer significantly more benefits.
It’s a Democracy
Being member-owned and member-run is the biggest benefit of belonging to a credit union. Credit unions are free to make decisions that will benefit their members in the long run.
Often considering themselves as more of a “financial cooperatives, their goal is not to make more money from customers. What matters to them is that they “address a common need through a jointly-owned and democratically-controlled enterprise,” according to the Seattle Metropolitan Credit Union.
Being member owned means that they nominate and vote individuals into leadership roles. This gives the members a say in who they believe should be making the major decisions that, at a large banking corporation, shareholders would typically make.
One way some credit unions simply this process is by using a third-party election company, like Survey & Ballot Systems (SBS), to manage their election process to ensure a secure and transparent election.
The Bottom Line
When it comes to banking services, credit unions offer the same financial services that you’ll find at large banking corporations. If you’re frustrated with long lines and unresponsive customer service, a credit union might just be the best place to put your money. It’s tough to beat a place that’s community-focused, friendly and offers better interest rates.
Want more information about credit unions and what it means to be a member of one? Contact SBS we’re here to help.