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 it comes to the differences between banks and credit unions - and names such as Bob Jain will agree - ownership is one of the most noticeable. Credit unions are designed in such a way that their members, not customers, own their own separate unions. Banks have customers, which don't make them much different from retailers in this regard. This is just one of the many points that contrasts these two types of organizations.
Target audiences differ when it becomes to banks and credit unions, too. Starting with credit unions, they serve members, which means that they aren't open to the public. Contrast this to banks, which are open to the public. Furthermore, unions tend to work on local levels, while most well-known banks are known either nationwide or worldwide. What this means that these types of companies focus on different groups of people.
The types of services that banks and credit unions offer are different, too. Anyone that has been a long-time client of a bank will tell you that there are numerous services they can take advantage of, even outside of the accounts they're able to open. Credit unions, on the other hand, seem to focus on particular services, thereby playing less to the idea of quantity. This is another major difference that many people tend to overlook.
To wrap things up, banks work for profit while credit unions do not. The latter shouldn't come as a major surprise, not only due to the fact that unions are smaller institutions but they are run by the members themselves. Banks, on the other hand, are managed by paid members and bolstered by shareholders. With this in mind, it makes sense that banks would work for a profit to keep all parties on board.
When it comes to the differences between banks and credit unions - and names such as Bob Jain will agree - ownership is one of the most noticeable. Credit unions are designed in such a way that their members, not customers, own their own separate unions. Banks have customers, which don't make them much different from retailers in this regard. This is just one of the many points that contrasts these two types of organizations.
Target audiences differ when it becomes to banks and credit unions, too. Starting with credit unions, they serve members, which means that they aren't open to the public. Contrast this to banks, which are open to the public. Furthermore, unions tend to work on local levels, while most well-known banks are known either nationwide or worldwide. What this means that these types of companies focus on different groups of people.
The types of services that banks and credit unions offer are different, too. Anyone that has been a long-time client of a bank will tell you that there are numerous services they can take advantage of, even outside of the accounts they're able to open. Credit unions, on the other hand, seem to focus on particular services, thereby playing less to the idea of quantity. This is another major difference that many people tend to overlook.
To wrap things up, banks work for profit while credit unions do not. The latter shouldn't come as a major surprise, not only due to the fact that unions are smaller institutions but they are run by the members themselves. Banks, on the other hand, are managed by paid members and bolstered by shareholders. With this in mind, it makes sense that banks would work for a profit to keep all parties on board.
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