Financial institutions play a vital role in today's economy, providing a wide range of services to individuals and businesses. From traditional banks to credit unions and online platforms, these institutions facilitate various financial transactions and help individuals manage their money effectively. However, among the common features shared by financial institutions, there exists a distinct characteristic that sets some apart from others. Let's explore this unique feature and understand why it is not a common trait in most financial institutions.
One common feature of financial institutions is the establishment and operation by members, sharing profits with owners. A credit union, for instance, is a member-owned financial cooperative that exemplifies this feature. Unlike traditional banks, credit unions are created and operated by members who have a say in their operations and enjoy a share of the profits. This democratic structure sets credit unions apart from other financial institutions.
Americans' adoption of digital banking continues to increase rapidly due to its convenience and accessibility. Digital banking allows individuals to perform various financial transactions online or through mobile applications, eliminating the need for physical visits to a bank branch. However, while digital banking is a common feature among financial institutions, it is not the distinct characteristic we are focusing on in this article.