Credit Union Movement
Credit Union is a financial institution which is owned and controlled by its members. The members of the Credit Union deposit money and get loans and other financial services. Credit Union is a Member owned financial cooperative, democratically controlled by its members and operated for the purpose of promoting thrift, providing Credit at competitive rates and providing other financial services to its members. Worldwide, Credit Union systems is very significant in terms of total system assets and average institution asset size, ranging from volunteer operations with a handful of members to institutions with assets worth several billion US dollars and hundreds of thousands of members. Credit unions operate alongside other mutual and cooperatives engaging in cooperative banking, such as building societies. Natural-person credit unions” (also called “retail credit unions” or “consumer credit unions”) serve individual people, as distinguished from “corporate credit unions,” which serve other credit union.
Number of Credit Union Worldwide
In cooperation with its member organizations in nearly 60 countries, World Council champions the credit union model worldwide to continue growing the international movement of 57,000 Credit Unions in 103 countries that serve 208 million members.
CU STRUCTURE (INTERNAL):
CU committee to be formed by 5-15 supervisory members who are elected by all members and serve a term of 3 years, reelected supervisory members may serve unlimited terms. The elected supervisory members should call the supervisory meeting within a week after the general meeting to elect 1 supervisory member as the chairman of this committee. The supervisory meeting should be called at least once a month to supervise the financial report and businesses implementation to make minutes with the suggestions for the board of directors.
Benefits of CU
With a bank you are simply a customer. Banks are for-profit institutions and their goal is to make money for the stockholders of the company. A Credit Union is not-for-profit entity and their goal is passing through the profits to the members. This comes in the form of added member benefits such as low fees and low rates. Credit unions offer many benefits over banks. 5 reasons are stated below:
(1).With a credit union you are a member, or a stakeholder. With a bank you are simply a customer. Banks are for-profit institutions and their goal is to make money for the stockholders of the company. A credit union is not-for-profit entity and their goal is passing through the profits to the members. This comes in the form of added member benefits such as low fees and low rates.
(2).It’s a misconstrued opinion that credit unions have limited branch and ATM locations. However, many credit unions belong to larger networks, such as the Credit Union Service Centers.
(3).Most credit unions offer credit cards just like a typical bank.
(4).Credit unions have many available ATMs, but they are also fee free! The average fee for an ATM is $2.33 and is on the rise. Now if you use your bank issued ATM card at a third party ATM, then you just doubled your fees.
(5). At a credit union a member can enjoy credit cards, home equity loans, mortgages, auto loans and personal loans at lower rates than bank.