What is the name of the cooperative financial institution owned by its members?

A cooperative financial institution owned by its members is a credit union. Unlike a conventional bank, which is generally owned by shareholders, a credit union is owned and governed by the people who hold memberships and use its services.

Credit unions typically operate on a not-for-profit cooperative model. Members pool savings so the institution can provide loans and other financial services. Surplus earnings may be returned to members through lower loan rates, higher savings returns, reduced fees, or reinvestment in the organization.

Membership is usually based on a defined “field of membership,” such as an employer, profession, community, school, religious group, or family connection. Members commonly elect a volunteer board of directors, and voting rights are generally based on membership rather than on the number of shares or dollars held.

Credit unions are sometimes confused with building societies, mutual savings banks, or savings and loan associations. Those institutions can also have cooperative or member-oriented features, but “credit union” is the standard generic term for the member-owned financial cooperative described in the question. Rules, insurance arrangements, and terminology vary by country.