A Look Inside a Credit Union
A credit union is a not-for-profit financial institution owned by its “members.” Why is this a big deal? Compare this with banks where people are just customers.
The primary goal of a bank is to make money for shareholders, which explains the high fees and high loan rates. A credit union is different. They are the only democratically controlled financial institutions in the United States.
Here’s what the typical credit union looks like:
>> Members
Members are the owners of the credit union, and vote for the Board of Directors and the Supervisory Committee. Members can run for any of these positions.
>> Board of Directors
The Board of Directors is made up of unpaid members who volunteer their time and talent to provide direction, as well as guidance, to the president or CEO.
>> The Supervisory Committee
The Supervisory Committee serves as a means of checks and balances. This volunteer committee examines and audits the affairs of the credit union.
>> Credit Union Staff
The day-to-day operations are overseen by a credit union president or CEO. Additional staff may include managers, loan officers, marketing professionals, accounting specialists, and member service representatives.
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