The difference between Banks and Credit Unions

 

Today, each credit union is an independent body owned by its members and registered under the Co-operative Societies Act and Regulations of Jamaica. This gives the credit union legal powers to operate.

The purpose of the credit union is for people to help each other with financial services at cost of operation. Banks, on the other hand are in business to supply financial services to customers to make a profit for their shareholders.

Credit Unions have put, as a fundamental part of their philosophy, the priority of people over money and things. They are providing the opportunity for the individual in need of a financial service to be a part owner of the business that will supply that need.

In credit unions any profit is given back to the member shareholder, while in banks it goes to the shareholders not the customers who actually use the services.

One of the major differences between credit unions and other financial institutions is members. Members of credit unions own and democratically operate their own financial institutions. Members shareholders determine policies, elect officers, attend annual meetings, and share in the profits.

In banks, the person with the largest of voting shares has the greatest control of power. Therefore, the more shares the more power to influence policy.

Regardless of account balances, members are only entitled to one vote and only can benefit from the services of their own credit union.

 

 

There is no ceiling for
motor vehicle loan

We are all about
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you to realize your dreams


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Saving money towards your
goal is important, but the
process can be challenging.
MCCU will help you achieve
these goals...
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Once you are a member
of a MCCU,
your savings and loans are
insured through CMFG Life
Insurance Company

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