Credit Union versus Banks

"Seven Cooperative Principles as They Apply to Credit Unions"

  1. Voluntary Membership
    • Credit Unions welcome all members within their charter
    • Banks have been known to ask their customers to take their business elsewhere
  2. Democratic Member Control
    • Member control their Credit Union by electing their board democratically: "one member one vote"
    • Control of a Bank is established by its ownership who vote their shares
  3. Members' Economic Participation
    • All cooperative members are invested in their cooperative: "It's their stake in the game"
    • Banks don't share ownership with all depositors.
  4. Autonomy and Independence
    • All Credit Unions/Cooperatives have the power of self-government
    • Transactional relationships with Banks offer no autonomy or independence
  5. Education, Training and Information
    • Employee & Membership education on cooperatives and their role; Directors on their fiduciary role.
    • Banks also invest in marketing their products with a little education
  6. Cooperation among Cooperatives
    • Cooperatives serve their members best and strengthen the cooperative community by cooperating with other cooperatives
    • Banks sometimes partner with other banks but not with cooperatives
  7. Concern for Community
    • Credit Union owners live and work in their community; they understand its needs and offer assistance
    • Bank owners invest for profit never knowing what communities are served


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