A credit union is a financial institution where people conduct their financial transactions. It's not a bank. It is a not-for-profit financial cooperative owned and operated by its members. The members pool their financial assets to provide funds for loans and a variety of other financial services. The essential difference between credit unions and other financial institutions is that credit unions are cooperatives that exist to serve their members. Credit union services are offered to members at the rates that are frequently more favorable than at other financial institutions because credit unions are not driven by the profit motive.