Being for-profit, banks aim is to make money from their loans and investments to satisfy shareholders. Whereas, credit unions are not-for-profit, meaning there are no external shareholders to satisfy, so profit can go back towards benefiting the members.

Banks are owned and run by their shareholders. On the other hand, credit unions are owned and run by their members. By becoming a member of a credit union, you have a say. Members are welcomed to attend an Annual General Meeting to vote on key decisions and have their say.

A credit union’s main purpose is to serve their members by improving their financial position, encouraging healthy saving habits, and providing affordable loans where needed. A key focus of credit unions is also to educate their members financially.