Did you know that there are certain differences between banks and credit unions? While you may believe that they are the same type of organization, despite the different names, you'd be mistaken. In fact, they differ in so many ways that it's worth discussing these points in detail. Here are a few talking points, covered by Robert Jain, that will help you better understand what these types of establishments bring to the table.
When discussing what sets banks and credit unions apart, the role of the individual is a great place to begin. Banks have customers, while credit unions have members. The difference here is that while customers have no ownership in the places they do business with, members do to an extent. Members have smaller unions that they are in possession of. Such information is just the start of what names such as Bob Jain can provide from an informational standpoint.
Another way that banks and credit unions differ is in the people that they assist. Banks, as you may already know, are open to the public. What this means is that, if you desired, you can simply walk into a bank and request to open a checking account. Credit unions serve their members, however, which means that you would require a membership to be assisted. In short, they aren't open to the public.
Services in relation to banks and credit unions should be covered, too. To be more specific, banks tend to offer more services to their customers than credit unions do to their members. It can be argued, though, that the unions in question focus less on quantity in order to make their offerings as beneficial as possible. Nonetheless, this is yet another difference that deserves to be noted.
Finally, and perhaps most notably, banks and credit unions possess different philosophies. To expand on this, banks work to make profits, which makes sense given the fact that they are supported largely by shareholders. Comparatively, credit unions are non-profit organizations, which means that they don't directly benefit in the same way. Given how small these types of companies are, this should come as no surprise.
When discussing what sets banks and credit unions apart, the role of the individual is a great place to begin. Banks have customers, while credit unions have members. The difference here is that while customers have no ownership in the places they do business with, members do to an extent. Members have smaller unions that they are in possession of. Such information is just the start of what names such as Bob Jain can provide from an informational standpoint.
Another way that banks and credit unions differ is in the people that they assist. Banks, as you may already know, are open to the public. What this means is that, if you desired, you can simply walk into a bank and request to open a checking account. Credit unions serve their members, however, which means that you would require a membership to be assisted. In short, they aren't open to the public.
Services in relation to banks and credit unions should be covered, too. To be more specific, banks tend to offer more services to their customers than credit unions do to their members. It can be argued, though, that the unions in question focus less on quantity in order to make their offerings as beneficial as possible. Nonetheless, this is yet another difference that deserves to be noted.
Finally, and perhaps most notably, banks and credit unions possess different philosophies. To expand on this, banks work to make profits, which makes sense given the fact that they are supported largely by shareholders. Comparatively, credit unions are non-profit organizations, which means that they don't directly benefit in the same way. Given how small these types of companies are, this should come as no surprise.
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