Differences between credit unions and banks

At London Mutual, you're not just an account number. You're a member of a community organisation that exists to serve you. We know our members, understand local needs, and make decisions locally rather than in a distant boardroom.

We're owned by our members, not shareholders

The biggest difference between a credit union and a bank is who owns it. Banks are owned by shareholders who invest money to make a profit. Credit unions like London Mutual are owned by the people who use the services - that's you, our members.

This means when you join us, you become a part-owner of the credit union. You have a say in how we operate through voting rights, and any profits we make go back to benefiting members rather than paying shareholders.

We exist to help members, not make profits

Banks need to make profits for their shareholders, which can mean higher fees and lower savings rates for customers. As a not-for-profit organisation, we operate differently. Any money we make goes back to our members through better rates on savings, lower loan rates, and reduced fees.

This approach means we can focus on what's best for our members rather than what makes the most profit. We're here to help you achieve your financial goals, not to maximise returns for outside investors.

We serve people with a common bond

While banks are open to anyone, credit unions serve specific communities. At London Mutual, our members share connections through where they live, work, or what they do for a living. This creates a sense of community and helps us understand our members' needs better.

Because we know our local communities well, we can offer more personal service and make decisions that reflect what our members actually need rather than what a distant head office thinks might work.

We're a cooperative working together

Credit unions work on a simple but powerful principle - we help each other. When you save money with us, those savings help fund loans for other members. When someone else saves, it helps make loans available for you when you need them.

This cooperative approach means we're all working towards the same goal - the financial wellbeing of our community. We also provide financial education and support to help members make the best decisions for their circumstances.