<div class="pull-right"><img src="http://puu.sh/ssWWD.jpg"></div>Recently I’ve been into <a href="https://golos.io/">Golos project</a> and was reading a lot of ideas on how to position and promote this newly born platform. I should tell you that there are already some brilliant ideas as to focusing on cooperation aspects of it heard from many enthusiasts. On this early development and crowdsale stage some compared Golos with DAO (Decentralization Autonomous Organization) and consumer cooperation concepts. So far I’ve already input some of my humble ideas about Golos positioning and promotion in regard to the social coop concept.

In this context, as a person working for the credit unions for well over a decade now (began yet long ago before the crypto revolution), I thought it might be a good idea to share the information about this form of financial cooperation here on Steemit (since we are the community and still using fiat money for some reason).

  
**So, what is a credit union, why it’s different from all other financial institutions, and how it all works**? 

**In short a credit union is a non-profit (not-for-profit) organization founded by individuals on the basis of  cooperative principles to provide its members with credit, savings and other financial services from  the pooled funds of the credit union membership**.

***If you are interested, please read more below (if not, still better read more below to know how you may manage your finances wisely)***. 

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http://puu.sh/ssYlq.jpg

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# Democratic Control

<div class="pull-left"><img src="http://puu.sh/ssXbM.jpg"></div>One of the main (cornerstone) principles of a credit union is democratic control. In a credit union it means that each member has one vote at the general meeting and other rights despite the size of savings or share account. Every member has the same rights (setting policies and making decisions) as long as his/her membership dues are paid. It may sound ridiculous for some Steemians, but a person with 1000 ~~MV~~ fiat monetary tokens in his account has the same power and rights as a person with an outstanding loan. Thus, a credit union is democratically controlled by each of it’s member/owner. 


# Open Membership

> Membership in a credit union is voluntary and open to all within
the accepted common bond of association that can make use of its
services and are willing to accept the corresponding
responsibilities. | [source](http://www.uwcc.wisc.edu/icic/today/credit/International-Credit-Union-Operating-Pri1.html)

<div class="pull-right"><img src="http://puu.sh/ssXdz.jpg"></div>
Credit unions are voluntary organizations, which means that nobody can be forced to enter a credit union. A member can be expelled only in situations  specified  by the credit union by-laws. It also means that anyone can become a member of a credit union and exit a credit union at any time. Anyone who shares the same common bond (field of membership) can become a member. This common bond can include parishioners of the same church, people who belong to the same organization, living in the same city, or employees of the same company. At the same time credit union membership implies certain responsibilities such as participation in governing a credit union. 

# NonDicrimination

<div class="pull-left"><img src="http://puu.sh/ssXiY.jpg"></div>
There is no place for gender, social, racial, political, religious, or any other discrimination in a credit union. Anyone who shares the same common bond can become a member (read “owner”) of a credit union. According to the US Credit Union National Association (http://cuna.org/) 57% of credit union CEOs overall are women.   

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# Service to Members


<div class="pull-right"><img src="http://puu.sh/ssXlc.jpg"></div>
On the contrary to the banks, credit unions serve their members, who are their owners at the same time. Services of the credit union are directed to improve the economic and social well-being of it’s each member. This means that each member has it’s fair rate whether he has a deposit or going to get a loan. Usually this means that anyone can get higher rate on his deposit than this of any bank and can have better conditions set for a loan (lower rate) comparing to the banks (definitely within the capabilities of the credit union).    

# Distribution to Members

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As it was mentioned above credit unions are paying on savings and provide loans and other services to their members. While credit unions are considered non-profit (not-for-profit) legal entities, there is the difference between the deposit rates and loan rates, thus some surplus arising out of the operations of the credit union. 
After covering the costs of operations all surplus belongs to and benefits all members with no member or group of members benefiting to the detriment of others. Thus, usually any surplus arising from the credit union operations shall be distributed among its members as dividends on shares or directed to improve existing services or create additional services for the members.


# Building Financial Stability

<div class="pull-right"><img src="http://puu.sh/ssY1B.jpg"></div>
Historically and naturally credit unions are more stable organizations. Since they are owned by their members, they usually don’t take unnecessary financial risks. Although, it’s a responsibility of each credit union member to manage it’s operations by hiring a professional and trusted manager/CEO. Overall a prime concern of any credit union is to build the financial strength, including accruing adequate reserves and various funds to ensure continued excellent services for the membership.


# Co-op Cooperation

<div class="pull-left"><img src="http://puu.sh/ssY4o.jpg"></div>
There are lots of examples of how companies succeed uniting into different pools like associations, leagues and such. In regard to the credit unions it also means a synergy effect in terms of financial cooperation within the cooperative community. Thus, cooperatives strengthen the cooperative movement and serve their members most effectively by working together through various local, national (Credit Union National Association, http://www.cuna.org) and international structures (such as the World Council of Credit Unions, http://www.woccu.org).


# Social Responsibility

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The philosophy of the credit unions means human and social development. Credit Union social justice vision extends to each individual member as well as to the larger community in which they live and work. The credit union idea is to provide services to all who needs and can use them. At the international level it means that the decisions should be taken with full regard for the interest and needs of the whole credit union community. Thus, when some members of the international credit union community are in need credit union pool their funds to help. You can read many stories of how credit unions help their members and other credit unions at http://www.woccu.org.

# Ongoing Education

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Credit union actively promote ongoing financial education for their members (or potential members along with public in general) as well as for their elected bodies, officers and employees. Also credit unions always promote self-help and self reliance principles as their distinct features. Usually in many countries credit union regularly hold social events to educate more people about financial literacy, organize fests, fairs and exhibitions. All these events are no doubt essential to the dual social and economic nature of credit unions.

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(Beautiful infographics of the [World Council of Credit Unions](http://www.woccu.org) is used in this post. Source banner can be downloaded [here as PDF file, 1.7MB](https://www.woccu.org/documents/ICU_Day_2016_Poster_-_EN))

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**You might also like my previous posts about money**:

[If you want to lose a friend, lend him money (My life story)](https://steemit.com/story/@richman/if-you-want-to-lose-a-friend-lend-him-money-my-life-story)
[Techniques to secure your crypto property](https://steemit.com/security/@richman/techniques-to-secure-your-crypto-property)

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Thank you for reading! Hope you found this post useful. 
Would love to hear about your experience with the credit unions and your thoughts on the matter.
Also, if you liked my post, please don’t forget to upvote, comment and follow me.
Cheers and have a great day!

**Sincerely yours, @richman**

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