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Credit unions are for service but not for profit

Credit unions offer financial support as well as community involvement in various ways which are different from everyday operations like giving small business loans, financial education, home loans etc. Carolyn Jordan shifts her diversity efforts all through her career of 42 years but she believes in credit unions. Read this blog to know a lot more about credit unions in America.

What is a credit union?

A credit union is a kind of financial institution which is quite the same as a commercial bank but is a non-profit financial cooperative owned by members. Credit unions usually give their services to their members to retail banks may include the provision of credit, deposit accounts and many other financial services. Large credit unions are different from our mainstream banks. The credit union system varies throughout the world in total assets. Credit unions in America provide the best services to members.

Carolyn Jordan, Chief Growth Officer of Neighbourhood Credit Union says the credit union is her life’s work. She sees credit unions as an important part of communities of colour due to affordability, easy accessibility and high focus on saving.

How is a credit union different from financial institutions?

Credit unions do differ from banks and many other financial institutions. In credit unions, persons who have their accounts are the owners and members. They need to elect their “board of directors” through one person vote method notwithstanding their invested amount. Credit unions are different from conventional banks. The mission of the credit union is completely community-based to serve not for profit but for people. Large credit unions provide similar financial services just like banks and these services include – sharing draft accounts, sharing accounts, sharing term certificates, credit unions, online banking and so on. Generally, a member of CU can easily borrow or deposit money.

If you see history, credit unions have always been offering superior member services and are highly committed to their members to boost their financial situation. When we talk about financial inclusion, credit unions offer a wide range of savings & loan products at cheaper costs to the members than other microfinance institutions.

What does Carolyn Jordan feel about credit unions?

DEI efforts (Workplace diversity, equity & inclusion) have transformed at the time of her professional career. In the early days of her career, there was less diversity overall in the CU movement. She was the first Black person for various credit union communities where she had served in the early 2000s. She is happy to see the changing phase of large credit unions. Carolyn is extremely glad to see many Black women are selected for CEO positions. This trend of having officers can be directly responsible for diversity, equity & inclusion along with a better credit union system in future.

Hopefully, you have liked this blog about credit unions, its difference with banks & other financial institutions, and how Carolyn Jordan feels about credit unions. The “non-profit” status of large credit unions is helping these unions to extend their presence all throughout the world. In the future credit unions will surely expand.

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CU BUSINESS News is the only all-digital, all-business resource for credit unions. Our readers are credit union executives, branch managers, credit union personnel and others who need to stay informed and educated about industry news and best practices. Every day (seven days each week), our contributors and publishing team sends new articles packed with information specifically for credit union executives.

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