Credit Unions
Credit unions are member-owned, not-for-profit financial cooperatives that provide banking services such as savings accounts, loans, and credit cards to their members. They operate under a cooperative structure where members pool their funds to offer each other financial services, often with lower fees and better interest rates than traditional banks. Unlike banks, credit unions are democratically controlled by their members, who each have an equal vote regardless of their deposit size.
Developers should learn about credit unions when building financial technology (fintech) applications, integrating banking APIs, or working on systems that handle financial transactions, as they are a key player in the financial services industry. Understanding credit unions is essential for projects involving digital banking platforms, payment processing, or regulatory compliance in the financial sector, as they have unique operational models and regulatory requirements compared to traditional banks.