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Oklahoma Central Holds Open House to Remove the CU 'Veil of Mystery'
Thursday, October 27, 2016 6:55 AM

This Friday, Oct. 28, Oklahoma Central Credit Union will open its doors to the public in an effort to shed light on how credit unions work and what sets them apart from banks.

In a message to the public, the Tulsa-based credit union says a lot of people know about credit unions, but their advantages remain poorly understood. Their not-so-haunted open house event is meant to serve as a Q&A for banking customers who are evaluating banks vs. credit unions.

Don't Be Tricked by Big Banks

Credit union representatives will be available to answer questions about how credit unions are driven by their values, not by profits, and about banking services available to both individuals and businesses.

At first glance, banks and credit unions may seem very similar. The truth is, however, these two types of financial institutions couldn’t be more different. In their communications, Oklahoma Central is running this comparison chart:

CREDIT UNIONS

COMMUNITY AND NATIONAL BANKS

Depositors are called members. Each member is an owner of the credit union.

Depositors are called customers. Customers have no ownership interest. Banks are owned by investors who may or may not be customers.

Credit unions are not-for-profit financial cooperatives whose earnings are paid back to members in the form of higher savings rates and lower loan rates.

Banks are for-profit corporations with declared earnings paid to stockholders only.

In the entire history of credit unions, taxpayer funds have never been used to bail out a credit union.

The Savings & Loan bailout in the 1980s, as well as the more recent bank bailouts, used taxpayer dollars.

Credit unions’ boards are comprised of volunteers.

Banks’ board members are paid.

Since members are owners, each member has a vote, regardless of how much money they have on deposit.

Bank customers don’t have voting rights. Banks are owned and controlled by stockholders, whose number of votes depends upon the number of shares owned.

Credit unions focus on consumer loans and member savings, as well as services needed by the membership.

Banks focus on commercial loans and accounts, and services that generate income.

The cooperative spirit of credit unions allows them to share resources to bring convenience and savings to its members. The CO-OP Shared Branch Network is one example of this cooperation.

Competition between banks prohibits a sharing of resources.

Credit union deposits are federally insured up to $250,000 by the NCUA, a branch of the federal government.

Bank deposits are insured up to $250,000 by the FDIC, a branch of the federal government.

 

Cornerstone looks forward to hearing about the great feedback this open house is expected to reap.