Episode 1350
In this episode, we explore the world of credit unions, which are member-owned, nonprofit financial cooperatives that offer services similar to commercial banks. We discuss how these institutions differ from banks by operating under a one-person-one-vote system where every member is also an owner, regardless of how much money they have invested. You will learn about the "not-for-profit" status of credit unions, which means their goal is to serve members rather than maximize profits, though they still must generate a surplus to ensure solvency.
We also trace the history of the movement, from 19th-century origins in Slovakia and Germany to the first North American credit union in Quebec and the first US branch in New Hampshire. The discussion highlights the stability of these institutions, noting that credit unions were two and a half times less likely to fail than banks during the 2008 financial crisis. Finally, we look at their massive global reach, representing over 274 million members across 118 countries as of 2018.
--------------------------------------------------------------------------------
Analogy: To understand the difference between a bank and a credit union, imagine the difference between renting an apartment and living in a housing co-op. In an apartment (a bank), you pay a landlord who keeps the profits. In a housing co-op (a credit union), you and your neighbors own the building together; any money you pay goes back into maintaining the building or lowering costs for everyone.
Published on 9 hours ago
If you like Podbriefly.com, please consider donating to support the ongoing development.
Donate