As someone who is involved with a credit union, it should come as no surprise that credit unions aren't like any other financial institution. This difference is the reason we exist and why we're tax-exempt.
You may have heard it before, but it bears repeating: The Credit Union Difference Is In The Structure. So, how exactly, are credit unions different from other financial institutions? Check out this YouTube video from Young&Free Alberta to get a quick overview.
So, credit unions actually differ from other financial difference in six primary ways …
Here are a few reasons ... if you can think of more, leave a comment below.
As not-for-profit cooperatives where "people are worth more than money," credit unions answer to their member-owners, not stockholders, and — as a result — credit unions consider it important to do more than just make a buck. This allows credit unions to give their members the most benefits possible, share their members' values, and be real part of their community.
Credit unions offer people an alternative source of services for their financial needs. Their presence in the market helps keeps a lid on the for-profit financial service providers, forcing them to offer competitive rates and fees.
Many people in banking circles say "credit unions look like banks, sounds like banks, and offer the same services as banks, ergo they must be banks and should be taxed and regulated in the same way as a bank." We know that's not true, but to counter it effectively, you must understand the differences between your credit union and other financial institutions.