What's the difference between a Bank and a Credit Union?
Credit Unions are different in many ways from shareholder owned listed banks with the major difference being the business model. While listed banks are driven by making money for their shareholders and ensuring an increase in their share price, mutual financial institutions are driven by improving their owner’s financial wellbeing. The profit a mutual makes is invested back into the business to benefit all owners equally as our owners are also our customers.
Mutual financial institutions can be Credit Unions, Building Societies and Mutual Banks – regardless of the name the business model is the same.
We are similar in one way - we're as safe as a Bank - as we're governed by the same regulations and are covered by the Government Guarantee on deposits up to $250,000. However, unlike a Bank, we're owned by our members, which is how we embrace the value of Mutuality.
As a shareholding member, you automatically become an owner, entitling you to vote at every Annual General Meeting - giving you an equal say in the future of your Credit Union. While the shareholders of Banks are people looking to invest for profit, we're more interested in investing in your financial well being - so rather than paying out dividends to a third party, we put all profits back into the organisation that you own. That's our commitment to you.
MOVE is also a signatory to the Customer Owned Banking Code of Practice. This is an expression of the importance we place on improving the financial well being of our members. The Code includes the following “10 Key Promises”:
We will be fair and ethical in our dealings with you;
We will focus on our customers;
We will give you clear information about our products and services;
We will be responsible lenders;
We will deliver high customer service and standards;
We will deal fairly with any complaints;
We will recognise our customers' rights as owners;
We will comply with our legal and industry obligations;
We will recognise our impact on the wider community; and
We will support and promote the Customer Owned Banking Code of Practice.
MOVE is committed to complying with the requirements set out in the Code. Should you have any questions in relation to the Code please contact our Member Care Centre or alternatively you can view the Customer Owned Banking Code of Practice.