What makes credit unions so amazing?!

Authored By: Rachel Finney on 9/30/2020

A Lesson on the Credit Union Difference from the Credit Union Advocacy Committee

Author: Kristen Taber

 

Credit Unions around the world abide by a set of guiding principles. One of these principles is “democratic member control”. This sounds great, but what does it actually mean?

Whereas banks have customers, credit unions have members. Credit unions operate on a not-for-profit structure, in which we do not have stocks or shareholders. Instead, our members are all considered partial owners of the credit union and get to participate in the decisions affecting the credit union. Here at MFCU, you can become a partial owner of the credit union by opening a savings account with a $5 deposit.

Democratic member control means that credit union members enjoy equal rights to vote (one member, one vote). Each credit union member has this right without regard to the amount of savings, deposits or their volume of business with their credit union.

The most common vote that credit union members can exercise on a yearly basis is voting for who sits on the credit union’s volunteer board of directors! Here at Members First Credit Union, voting for board members takes place at our Annual Meeting that occurs every spring. All members are welcome to attend and participate in the process.

Bonus fact: In some countries, credit unions offer the first or only opportunity for citizens to vote!

 



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