member-owned financial institutions

Member-owned financial institutions, such as credit unions and mutual savings banks, are organizations that serve their members rather than external shareholders. Members pool their savings and receive services like loans and checking accounts. Profits are reinvested into the institution to benefit members, often resulting in lower fees and better rates compared to traditional banks. Since the members have a say in operations, typically one vote per member regardless of their account balance, this structure fosters a community-focused approach to banking that prioritizes the needs of its members over profit.