Credit Union Difference

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  • Hello everyone, I’m Alvaro and I’m going to help you understand what sets credit unions apart from banks.

    While banks and credit unions offer a lot of the same products and services like savings and checking accounts, credit cards, and loans… that is about all they have in common. 

    The differences between banks and credit unions are their:

    • Business structures
    • Ownership
    • And last, but not least, the mission.

    In this video, I’ll dive a little deeper into these three areas to help make sense of the credit union difference. 

    The biggest contrast between credit unions and banks is in the not-for-profit structure of credit unions. 

    Most businesses generate revenue for their owners, investors, or shareholders. 

    The more money a business makes, the better it is for the people at the top… but that usually comes at the expense of their customers. 

    Banks are no different.

    Profits from the loans and services they provide go to their owners or shareholders. 

    Churning out dividends on a regular basis is top priority.

    That may be great for the investors … but not necessarily the best thing for consumers.

    “If customer service takes a hit … or fees and costs go up for customers … so be it! All in the name of profits!”

    Now don’t get me wrong … I believe banks have a place.

    However, they also actively lobby to get rid of credit unions to not only eliminate “competitors” … but eliminate a mission-driven industry that, quite frankly, keeps them fair.

    We have seen headlines time and time again, where some banks resort to questionable and downright illegal practices in their quest for bigger profits.

    Now if you wondered why I did “air quotes” when I said “competitors” … it’s because in the United States, banks own an astonishing 91-percent of deposits compared to a mere eight-percent for credit unions. 

    Credit unions are really not competitors and banks are currently enjoying record profits … so what would compel them to target credit unions?

    One word: greed.

    The for-profit banking model also affects whether they open branches in certain areas … or even keep open branches located in areas they consider no longer performing to their standards.

    In fact, according to the FDIC … NCUA … and America’s Credit Unions … since 2012 banks have closed more than 20,222 branches, while credit unions have opened 562 branches.

    This has a devastating effect on the people who lose those jobs … and on the communities that become financial deserts.

    In contrast, the credit union model does not put profits over service.

    Credit unions don’t squeeze profits out of the organization to pay investors.

    The profits are pumped right back into the organization for the benefit of the members.

    Credit union members get less fees and lower interest rates on loans … and higher returns on their savings products. 

    Credit unions also regularly rank higher in overall satisfaction on average compared to banks. 

    Two recent J.D. Power studies showed that credit unions scored 74-points higher than the average bank in satisfaction scores. 

    Credit unions are popular with the average American who needs basic financial products… and even those seeking wealth building services.

    That is why 142-million American consumers are credit union members. 

    Credit unions are governed by a board of directors who are all members of the credit union … most of them are volunteers.

    Board members are democratically elected by the membership to provide oversight and guidance on the general direction of the credit union. 

    Any member can run for a board seat … regardless of how much money they have in their accounts.

    So, if you’re not happy with the direction of your credit union, you can run to join the board or at the very least, vote for those who are keeping the organization accountable. 

    This helps credit unions stay responsive to their communities and their members.  

    Credit unions are also limited to serving members who have a common bond. 

    A credit union’s “field of membership” determines who is eligible to become a member.

    The restriction usually applies to people who:

    • Live in a certain region…
    • Work for a certain employer or industry sector…
    • Or even if they are part of the military. 

    For example, there are federal credit unions that provide membership for federal workers and their families … while smaller credit unions might just service a specific region or town.

    You can think of them as “exclusive” … but just about every American can join a credit union.   

    At Ascentra, our field of membership is open to people who live or work within 21 counties in Eastern Iowa and Western Illinois.

    While some may see this as a limiting factor, credit unions consistently punch above weight when competing with large national banks by working together to help provide service to all their members in very unique ways.

    Cooperation among cooperatives – this is actually one of the principles of cooperatives – which is exactly what credit unions are. 

    Cooperatives are organizations that are owned and ran by their members to meet the common needs of the membership. 

    Many credit unions partner with each other to allow their members to mutually benefit.

    One example of that cooperative spirit is the shared branch network … a service that lets you have a membership at a credit union in Bettendorf, Iowa … but go to college on the other side of the country without worrying about having access to your accounts.

    Shared branching allows members to walk into any one of over 56-hundred credit unions across the country to make withdrawals, transfers, or loan and mortgages payments.

    If you’re a snowbird or maybe on spring break in Florida … Orlando credit union can do business for Ascentra members … and we can do the same for their members at our shared branches.

    Credit unions also give back to their local communities.

    As not-for-profits, credit unions have a tax-preferred status … which means we pay all taxes except for federal corporate income tax.

    The tax savings and credit union profits are used to offer better rates and services to our members… and reinvest in the community by:

    • Funding local programs
    • Teaching financial wellness
    • Partnering with charitable organizations
    • Helping members going through hardships
    • Volunteering… and more.

    This has proven to be a great investment for taxpayers.

    Many studies show high returns for millions of credit union members and the overall economy. 

    For years… bank lobbyists have been trying to have credit unions’ tax status taken away … but that would not only affect credit unions … but the people we serve. 

    It would cost our members more money … and hurt our ability to make a community impact … which is deeply engrained in why credit unions exist in the first place.

    Our guiding philosophy is “people helping people.”

    This has been the mission since day one!

    Credit unions were born because people of modest means were turned away by banks … and being preyed upon by loan sharks.

    They came together to lend each other money … to help each other grow and be successful.

    They created cooperatives … the early credit unions.

    Those issues are still happening today.

    Many banks don’t offer small consumer loans or help people with lower credit scores … leaving them to turn to payday lenders or pawn shops. Credit unions step in to fill that gap.

    Plenty of credit unions have a similar story. 

    A group of people who had an employer, church, or organization in common and were fed up with unresponsive banks and took control of their finances. 

    For Ascentra Credit Union, it began in 1950 with a group of union employees working at the Alcoa Davenport works plant. 

    They organized and created Alcoa employees credit union … with some of the earliest loans being used to help buy coal to heat their homes … or help put a down payment on a house. 

    Today, the credit union serves more than 40,000 members and manages more than 556-million dollars in assets.

    It’s also grown to nine branches located in Bettendorf, Clinton, Davenport, and Muscatine, Iowa, and Moline, Illinois.

    The efforts to help people going through hard financial times has also multiplied.  

    At Ascentra, we partner with organizations to provide financial wellness for people of all walks of life.

    We’ve even created a foundation to ensure that even in tough economic times, we are still able to give back. 

    We don’t just write a donation check.

    We foster relationships with area changemakers and organizations who align with our mission … those who amplify our beliefs of listening, caring and doing what’s right.

    That goes beyond just helping people get a loan.

    It’s the way we carry ourselves and how we help others in our community.

    So, what’s the credit union difference?

    It’s simple … credit unions work to improve our communities because we work for and are owned by the people in our communities.

    We will continue to grow and evolve to meet the needs of our members … because the credit union difference is the core of everything that we do
    May 29, 2025

    The Credit Union Difference

What Sets Credit Unions Apart?

Credit unions offer a community-focused, member-owned alternative to traditional banking services. Unlike for-profit banks, which prioritize shareholder profits, credit unions serve the needs of their members. This fundamental difference influences all aspects of credit union operations, including the products they provide and the values they promote.

Additionally, credit unions are closely connected to local communities. This enables them to deliver personalized service and a strong commitment to financial education that goes beyond simple transactions. Many credit unions enhance financial wellness by providing free workshops, counseling, and youth savings programs.

Discover why credit unions are not only different but also make a positive impact by exploring the following resources.


The Difference Between Credit Unions and Banks


Credit Unions

  • Ownership: Member-owned; each member is a part-owner.

  • Income Model: Not-for-profit; earnings returned to members via better rates and lower fees.

  • Governance: Democratically controlled; one member, one vote.

  • Focus: Focused on members' needs, not shareholders.

  • Rates & Fees: Offer higher savings rates, lower loan rates and fewer/lower fees.

  • Community Involvement: Often community-based and mission-driven.

  • Service Approach: Personalized, relationship-based service.

  • Eligibility: Must meet membership requirements (location).

Traditional Banks

  • Ownership: Shareholder-owned; focused on maximizing investor returns.

  • Income Model: For-profit; profits go to shareholders.

  • Governance: Controlled by a board elected by shareholders.

  • Focus: Prioritizes profit over customer needs.

  • Rates & Fees: Often lower savings rates, higher loan rates and more fees.

  • Community Involvement: Less locally focused; community involvement varies.

  • Service Approach: Standardized service; may be less personal.

  • Eligibility: Open to the general public with no membership restrictions.


The Ascentra Difference


What Sets Ascentra Apart?

Unlike banks, we don’t answer to stockholders or investors, we answer to YOU. As a local, democratically controlled not-for-profit, each member of Ascentra Credit Union owns a share in the credit union. When you join Ascentra, you are not a customer you're a member-owner and are treated as such. 

We put people before profits. Those profits then go back to you, in the form of lower interest rates on loans, higher returns on your deposits, and lower fees.

For our 40,000 members who directly benefit from our cooperative model, it's more than just about financial services, it’s about being part of an organization made up of people who genuinely care about your financial well-being and the communities we serve.  An organization that is always listening, caring, and doing what’s right. 

Ascentra Scholarship Program

Each year, Ascentra offers up to $15,000 in scholarships to assist student members planning to further their education through undergrad programs, continuing education (post graduate) or through trades/vocational programs.

 Applications open in October and close in March of each year. 

LEARN MORE

Ascentra Foundation

The mission of the Ascentra Credit Union Foundation is to improve the quality of life for the membership of Ascentra Credit Union and further the philanthropic outreach in the communities we serve.

 

 

$1,035,092

in local charitable
contributions since 2015

 

LEARN MORE


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Protecting Yourself from Scams and Spam

  • Jun 5, 2024

There’s nothing quite like receiving multiple spam emails, calls and texts each day. Cisco Systems, Inc. estimates that over 320 billion spam messages are sent every day.

Spam is, at the very least, an annoyance. At its worst, it can be a scam tactic or digital attack. Learning how to tell what spam is and what is a safe message can be a helpful tool to increase your cyber-safety and protect your information.

Learn How to Spot Spam

There are many ways to determine if an email, phone call or text is spam. Here are a few common ones to help you sort through your inbox.

  • Check to see if the sender or caller is legitimate and recognizable by reviewing the email address or area code.
  • Review the contents of the email or text for an abundance of misspellings and grammar errors or links that do not seem safe.
  • Determine if they are making an urgent request for Personal Identification Information (PII), such as your social security number, driver’s license number, taxpayer identification number, patient identification number, financial account numbers or credit card number.

Reducing the Amount of Spam You Receive

There is no surefire way to reduce the amount of spam you receive to zero. Instead, increase your awareness of spam tactics and take steps to make it harder for spammers to get to you.

  • Keep your PII close. Giving out your email and phone number frequently increases the likelihood of receiving spam messages.
  • Don’t open messages that appear to be spam. Delete and report these messages.
  • Don’t respond to spam. Responding to spam teaches your system that the message isn’t spam and that you want to receive more of it.

There are many more ways to tell if an incoming email, phone call or text is spam. The best way to prevent yourself from being spammed or scammed is to be aware!

Common Types of Scams

Scams are a dangerous type of spam message that specifically seek to harm you, often by stealing your money or PII.

  • Charity Scams: A thief poses as a real or fake charity and asks for donations.
  • Loved One Scams: A family member calls you out of the blue to ask for a wire transfer or gift card due to an emergency or bad situation.
  • Friendship Scams: A new person enters your life and builds a friendship with you, only to ask for money (once, or even repeatedly).
  • Mail Scams: A piece of mail arrives asking you to reply with money or PII in exchange for something.

Don’t fret - not every instance of contact from a charity, loved one, friend or mail item is a scam! In fact, most aren’t. But it’s important to be skeptical and take precautions when a request comes that you aren’t expecting and seems out of the norm.

Ascentra’s Promise

Ascentra Credit Union recognizes the importance of protecting the privacy and PII of our members and it is our goal to protect that information in every way we interact with you, whether it be in a branch, at one of our ATMs, on the telephone or online through the Internet.

It's important to know that Ascentra, or any other bank, financial institution, or tax authority should not ask you for PII through any type of communication. This includes asking for your debit or credit card PIN, a Secure Access Code (SAC) or your user ID and password to Digital Banking. If this occurs, call or stop into any of our branches or reach out to our Compliance and Fraud department by calling (563) 355-0152.

Ascentra encourages you to continue to do research about preventing spam and protecting yourself from scams. After all – you are your own best defense! 


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Protecting Yourself from Scams and Spam

  • Jun 5, 2024

There’s nothing quite like receiving multiple spam emails, calls and texts each day. Cisco Systems, Inc. estimates that over 320 billion spam messages are sent every day.

Spam is, at the very least, an annoyance. At its worst, it can be a scam tactic or digital attack. Learning how to tell what spam is and what is a safe message can be a helpful tool to increase your cyber-safety and protect your information.

Learn How to Spot Spam

There are many ways to determine if an email, phone call or text is spam. Here are a few common ones to help you sort through your inbox.

  • Check to see if the sender or caller is legitimate and recognizable by reviewing the email address or area code.
  • Review the contents of the email or text for an abundance of misspellings and grammar errors or links that do not seem safe.
  • Determine if they are making an urgent request for Personal Identification Information (PII), such as your social security number, driver’s license number, taxpayer identification number, patient identification number, financial account numbers or credit card number.

Reducing the Amount of Spam You Receive

There is no surefire way to reduce the amount of spam you receive to zero. Instead, increase your awareness of spam tactics and take steps to make it harder for spammers to get to you.

  • Keep your PII close. Giving out your email and phone number frequently increases the likelihood of receiving spam messages.
  • Don’t open messages that appear to be spam. Delete and report these messages.
  • Don’t respond to spam. Responding to spam teaches your system that the message isn’t spam and that you want to receive more of it.

There are many more ways to tell if an incoming email, phone call or text is spam. The best way to prevent yourself from being spammed or scammed is to be aware!

Common Types of Scams

Scams are a dangerous type of spam message that specifically seek to harm you, often by stealing your money or PII.

  • Charity Scams: A thief poses as a real or fake charity and asks for donations.
  • Loved One Scams: A family member calls you out of the blue to ask for a wire transfer or gift card due to an emergency or bad situation.
  • Friendship Scams: A new person enters your life and builds a friendship with you, only to ask for money (once, or even repeatedly).
  • Mail Scams: A piece of mail arrives asking you to reply with money or PII in exchange for something.

Don’t fret - not every instance of contact from a charity, loved one, friend or mail item is a scam! In fact, most aren’t. But it’s important to be skeptical and take precautions when a request comes that you aren’t expecting and seems out of the norm.

Ascentra’s Promise

Ascentra Credit Union recognizes the importance of protecting the privacy and PII of our members and it is our goal to protect that information in every way we interact with you, whether it be in a branch, at one of our ATMs, on the telephone or online through the Internet.

It's important to know that Ascentra, or any other bank, financial institution, or tax authority should not ask you for PII through any type of communication. This includes asking for your debit or credit card PIN, a Secure Access Code (SAC) or your user ID and password to Digital Banking. If this occurs, call or stop into any of our branches or reach out to our Compliance and Fraud department by calling (563) 355-0152.

Ascentra encourages you to continue to do research about preventing spam and protecting yourself from scams. After all – you are your own best defense!