What Is a Credit Association?
A credit association is a member-owned financial co-operative that provides banking services, loans, and savings products to its members. Unlike traditional banks, it operates under a not-for-profit model, prioritizing member benefits over shareholder profits.
We as Day ONE dedicated to the betterment of our society and we believe it is our social responsibility to make financial literacy available and keep growth opportunites open to Residents. This is why we do not require an RE5 from when you sign up to become an SME, however, we will require you to attain it as it not only helps you academically but it also protects you as well as your clientele.
Benefits of Credit Associations
- Lower Fees & Rates: Reduced loan rates and higher savings yields due to non-profit structure.
- Member-Centric: Decisions prioritize member needs over profit motives.
- Community Focus: Reinvests profits locally through grants or low-interest loans.
- Flexible Eligibility: Often serve niche groups (e.g., professions, communities) with tailored services.
- Profit Sharing: Surpluses distributed as dividends to members.
Advantages Over Credit Unions & Traditional Lenders
- vs. Credit Unions: Credit associations often cater to specific communities or industries, offering more specialized services.
- vs. Traditional Banks: No shareholder pressure allows for lower fees and personalized member support.
- Collaborative Structure: Members have voting rights, ensuring democratic control over policies.