Banks emphasize business and consumer accounts, and many provide trust services. Credit unions emphasize consumer deposit and loan services. Savings institutions emphasize real estate financing.

Since credit unions are member-driven and not for profit, members receive higher interest rates on savings, lower rates on loans and lower fees. On the other hand, profits made by banks are only distributed among their shareholders, meaning that the money banks make isn’t returned to the people they make it from.

The main difference between a bank and a credit union is that a bank is a for-profit financial institution, while a credit union is a nonprofit. The main financial services a credit union offers – including loans, checking accounts and savings accounts – are also available with traditional banks.

The bottom line is that banks are for-profit institutions, while credit unions are non-profit. Credit unions typically brag better customer service and lower fees, but have higher interest rates. On the contrary, banks generally have lower interest rates and higher fees.

Credit unions specialize in savings accounts and making short-term loans. Since they are non-profit, all the profits made by these loans are given back to the credit union’s depositors as dividends. Many depositors also prefer credit unions because of the more “Personal Banking”.

Most deposits are insured through the NCUA. You have to be eligible to join a credit union. Credit unions may share branches. Not all credit unions offer the same features.

Financial intermediaries serve as middlemen for financial transactions, generally between banks or funds. These intermediaries help create efficient markets and lower the cost of doing business. Intermediaries can provide leasing or factoring services, but do not accept deposits from the public.

Types of financial intermediaries

• Banks.
• Mutual savings banks.
• Savings banks.
• Building societies.
• Credit unions.
• Financial advisers or brokers.
• Insurance companies.
• Collective investment schemes.

The most important types of financial intermediaries are mutual funds, pension funds, life insurance companies,and banks.

Thus, banks act as financial intermediaries—they bring savers and borrowers together. An intermediary is one who stands between two other parties. Banks are a financial intermediary—that is, an institution that operates between a saver who deposits money in a bank and a borrower who receives a loan from that bank.

What services do theirclosest competitors offer? Soln:Banks offer the widest range of services of any financial institution. They offer thrift deposits toencourage saving and checkable (demand) deposits to provide a means of payment for purchases ofgoods and services.

What is happening to banking’s share of the financial marketplace and why? It was reduced from 2/3 to 1/5. This is because of Gramm-Leach-Bliley Act 1999 because it allowed different types of financial firms to offer one-stop financial services.

There are two reasons that banks are increasingly becoming one-stop financial service conglomerates. The first reason is the increased competition from other types of financial institutions and the erosion of banks’ traditional service areas. Banks offer the widest range of services of any financial institution.

Yes. Banks should increase their value by engaging in other services. They can appeal to customers who want to have all their financial services provided by one financial institution.

A financial department store is an institution where banking, insurance, and security brokerage services are unified under one roof. This recent trend to unify banking, insurance, and security brokerage services is often referred to as universal banking.

a financial establishment that invests money deposited by customers, pays it out when required, makes loans at interest, and exchanges currency.