2. Credit Unions and Banks
The Basic Difference
Credit Unions
History of Credit Unions
Structure
Purpose and Philosophy
The ECU Difference

3. The Difference Credit Unions are not-for-profit financial institutions
Owned and controlled by members
Banks are for-profit
Owned and controlled by a group of share holders

4. How the System Works
Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively.

5. How the System Works, cont.
Credit Unions use this difference to
return extra benefits to their members and the communities they serve.
Financial institutions are critical to our economy.
They put their account holders' money to use by lending it out to others who can then use it to buy homes, businesses, send kids to college...

6. Why are Credit Unions Not-For-Profit?
Let’s take a look at how they began.

8. History CUs have existed for more than 150 years
Congress passed the FCUA in 1934, which established CUs for the provident purpose of thrift
Intent of CUs in the US was to expand financial service offerings to consumers during the Great Depression
Credit unions were founded during difficult economic times throughout history
They fared well during the “Great Recession” a few years ago when big banks failed
As a result, Credit Union memberships has risen dramatically
Spin-off of the barter economy in Germany and England
CUs date back to 1908 in U.S.

9. Credit Union Structure
Not-for-profit financial cooperatives that bring together borrowers and savers
Have volunteer board of directors (not compensated), elected by members
Every member has one vote in election of directors

10. What We Do
Lower the cost of financial services to members and their families
Better Rates
Drives down cost of loans and deposits to all consumers
Fewer Fees
Offers lower fees and market leading rates which forces competitors to do likewise
Bid down the cost of financial services to all consumers

11. “Not for profit, not for charity,
Philosophy
“Not for profit, not for charity,
but for service”
People Helping People

12. Membership Eligibility

13. ECU Snapshot Serving more than 170,000 members $3.2B assets
Largest CU in Tennessee
One of the 50 largest CUs in the nation
More than 600 employees
24 branches and 70+ ATMs located
Allpoint® ATM network adds 55, surcharge-free ATMs nationwide
Financial Education
Offer free financial advisors to all members
Seminars

14. Community Partner ECU is beside our communities
Contributions generally are awarded to organizations that provide broad community benefit. Since 2000, we’ve given $5.4M in contributions.
Education
Charitable
Economic development

15. A Two Minute Recap