A credit union is a financial institution, similar to commercial banks, in which it offers checking, savings, credit, loans and investment services to its members (Issitt, 2016). Credit unions operate under Federal or State law as not-for-profit cooperative organizations. Profits made by the credit union are returned back to members in the form of dividends, reduced fees, higher savings rates and lower loan rates. Membership of a credit union is based on a common bond between individuals. These bonds can be based on a specific community, organization, religion or place of employment. A credit union is owned and controlled by its members. Every member of the credit union, regardless of how much they have, is an owner who can cast a vote. These votes are used to elect volunteer board of directors who manage the credit union. As a cooperative organization, the monies deposited by members are used to provide other members with loans (What is a credit union, n.d.). Founded in 1968, Garden Savings Federal Credit Union was created to serve the financial needs of employees for AT&T Laboratories. AT&T Laboratories, previously known as Alcatel-Lucent, in now known as Nokia. The credit union is designated as a federally chartered financial …show more content…
This industry is comprised of businesses that are engaged in accepting share deposits in cooperatives and organized to offer loans to those same members. This industry comprises of federal, state and non-federally charted state credit union. As of year-end for 2016, there are 19,086 credit unions. This is a 1.9% increase from year-end for 2015. During this period sales also grew by 4.3%. It is estimated that by year end for 2017 there will be 19,447 credit unions. This is an increase of 2.4% from the previous year. It is also estimated that sales will increase by 4%. The American economy plays a key role in the numbers provided (Credit Unions Industry,