7:33 AM
Unknown
At first glance, you may believe that banks and credit unions are interchangeable. It's easy to see why, as these locations are known for helping others in the financial sense. While this is true to an extent, the ways that they assist people are different. Robert Jain and other authorities on finance will say the same. The following information will be able to help you contrast these organizations and what they provide.
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.
Another difference to consider is that banks and credit unions work to help different groups of people. For those that don't know, credit unions are only open to members, which means that they are exclusive, typically in specific regions of the world. Banks, on the other hand, are open to anyone, regardless of location. If you are a customer of a certain bank, you can go to any location and make a withdrawal, deposit, or what have you.
The types of services that banks and credit unions offer are different, too. Anyone that has been a long-time client of a bank will tell you that there are numerous services they can take advantage of, even outside of the accounts they're able to open. Credit unions, on the other hand, seem to focus on particular services, thereby playing less to the idea of quantity. This is another major difference that many people tend to overlook.
To wrap things up, banks work for profit while credit unions do not. The latter shouldn't come as a major surprise, not only due to the fact that unions are smaller institutions but they are run by the members themselves. Banks, on the other hand, are managed by paid members and bolstered by shareholders. With this in mind, it makes sense that banks would work for a profit to keep all parties on board.
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.
Another difference to consider is that banks and credit unions work to help different groups of people. For those that don't know, credit unions are only open to members, which means that they are exclusive, typically in specific regions of the world. Banks, on the other hand, are open to anyone, regardless of location. If you are a customer of a certain bank, you can go to any location and make a withdrawal, deposit, or what have you.
The types of services that banks and credit unions offer are different, too. Anyone that has been a long-time client of a bank will tell you that there are numerous services they can take advantage of, even outside of the accounts they're able to open. Credit unions, on the other hand, seem to focus on particular services, thereby playing less to the idea of quantity. This is another major difference that many people tend to overlook.
To wrap things up, banks work for profit while credit unions do not. The latter shouldn't come as a major surprise, not only due to the fact that unions are smaller institutions but they are run by the members themselves. Banks, on the other hand, are managed by paid members and bolstered by shareholders. With this in mind, it makes sense that banks would work for a profit to keep all parties on board.
About the Author:
To learn more regarding what you have just read, please consult Bobby Jain.. This article, What Sets Banks And Credit Unions Apart, By Robert Jain is available for free reprint.
0 comments :
Post a Comment