Tribute is paid to the credit union founders and the many people who continue the commitment of the credit union movement today. This year, International Credit Union Day falls at a time in which many credit unions have found themselves standing behind the credit union philosophy more than ever. Just this past week, the Supreme Court heard an important case about credit union membership. The case stems from legal challenges by banks to limit who can join credit unions. The credit union movement is hopeful that the court will rule in favor of credit unions and in favor of consumers by keeping credit unions available to everyone.
Many people are unaware of the numerous differences between credit unions and banks.
In other words, the members own the credit union to which they belong. Banks, on the other hand, have stockholders who receive the profits reaped from the customers. Second, the board members of each credit union serve purely on a volunteer basis, while banks' boards of directors get paid for serving on the board. Another main difference between credit unions and banks, and one that is often overlooked, is the fact that a credit unions' primary objective is to serve the members, whereas a bank is driven by the need to make profits. Congress created credit unions as an alternative to for-profit financial institutions.