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.
One of the biggest differences between banks and credit unions are the people that do business with them. Banks, for example, have customers. Essentially, these are individuals that work directly with banks and therefore have no stake in them. Credit unions have members, which own their own separate unions. What this means, according to names such as Bob Jain, is that they possess a level of ownership they wouldn't have had otherwise.
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.
Next, let's discuss services, which differ between banks and credit unions. Did you know that, typically, banks offer more in the way of services than credit unions? Banks can provide more than simply the ability to open accounts, including direct deposit options for those that work in certain fields. While unions offer fewer services by comparison, they tend to take up for it with high-quality products, better insurance rates, and other such benefits.
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.
One of the biggest differences between banks and credit unions are the people that do business with them. Banks, for example, have customers. Essentially, these are individuals that work directly with banks and therefore have no stake in them. Credit unions have members, which own their own separate unions. What this means, according to names such as Bob Jain, is that they possess a level of ownership they wouldn't have had otherwise.
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.
Next, let's discuss services, which differ between banks and credit unions. Did you know that, typically, banks offer more in the way of services than credit unions? Banks can provide more than simply the ability to open accounts, including direct deposit options for those that work in certain fields. While unions offer fewer services by comparison, they tend to take up for it with high-quality products, better insurance rates, and other such benefits.
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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