With roots that go back to the 1850s , credit unions remain an integral part of the global financial system . They provide services to underserved communities as well as large urban settings . Credit unions differ a great deal from banks in that they are member-owned nonprofit cooperative financial institutions ( FIs ). They may offer financial services equivalent to those of other FIs , although normally only a member of a credit union may deposit or borrow money . In several African countries , credit unions are commonly referred to as savings and credit cooperatives , or SACCOs .