Thrift Society vs Credit Union

Thift Society

Credit Union

 

  • No Supporting Secondary Body - Affiliation Cost to the Secondary Body is eliminated
  • Restricted to sourcing capital from member through shares and loan
  • Capital requirement for registration of a Thrift Society is minimal - less than that of Credit Unions
  • Minimum financial operating standards for Credit Union does not apply to Thrift

PRO

  • Supporting Secondary Body i.e. Jamaica Co-operative Credit Union League (JCCUL) - higher affiliation cost
  • Unrestricted ability to accept deposits from members
  • Automatic availability of insurance facility for loans and savings portfolio
  • Accepted players within the Financial Sector

 

  • Weaker capital base
  • Smaller membership base
  • Not as recognized within the Financial Sector

CON

  • Large start up capital required
  • Bank-like concept in operations
  • Erosion of uniqueness in operation i.e. Co-operative's concepts, principles and philosophy
  • Competition from other entities within the financial sector, impacts negatively on operations of Credit Unions