Credit Union Accounts
June 26, 2009
Credit States is very similar to a bank, credit union, but have unique characteristics that make a different institution. Credit union is a non-profit organization that seeks to service over profitability. Note that I said that credit unions are nonprofits, however they are not Charities. Credit unions must make sound financial decisions. A credit union is an institution that is owned by “members” or customers. Contrast this with banks where the customers are just customers. Banks answer to profitability - usually shareholders own a bank and expect from the bank financial performance management.
Credit unions simply have to limit their offerings to people who have a common bond. Credit union should be enough to limit their offerings to those who have ties. This bond may be the Geographic community, a workplace, a religion, or other type of bond. This association may be the geographical community, the workplace, religion, or the type of bonds. Read more