A financial cooperative owned and operated by its members, typically employees of a specific organization or group of organizations, provides financial services such as savings accounts, loans, and checking accounts. These institutions prioritize member well-being over profit maximization, returning surplus income to members through dividends and lower fees.
Such member-owned financial institutions offer several advantages. Lower interest rates on loans and higher returns on savings are common, along with personalized service and a focus on community financial health. Historically, these cooperatives were established to provide affordable financial services to individuals often overlooked by traditional banks. This commitment to financial inclusion remains a core principle.
