Ownership A credit union is a financial cooperative, owned entirely by its members. Just look around you. Banks, on the other hand, are tightly-held businesses, each controlled by an elite group of stockholders and operated primarily for their benefit. The recent spate of mergers has demonstrated that banks' primary concern is profit.
Large banks merge to form even larger mega-banks.
They then close branches and lay off staff to increase profit. Increased fees and reduced service usually follow soon. In contrast, the primary purpose of credit unions is to provide low-cost financial services to members. Profits are returned to the membership as higher dividend yields and lower loan rates and in new services and technologies which enable the credit union to better serve its members. Although credit unions and banks may at first glance look similar, there are important differences.