Credit Union Definition: A credit union is a financial institution that is a cooperative that functions like a bank. Credit unions tend to be localized, though as they become more popular, they’ve grown into nationwide companies.
These financial cooperatives are owned and operated by members who have voting rights and elect volunteer members to the board of directors. When a new member opens an account with a credit union, this includes purchasing credit or shares in the company. There are approximately over 700 credit unions located across Canada and many more around the world.