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To begin, let’s clarify this cold business of banking. A credit union, not unlike a bank, is a financial intermediary at its core. Specifically, it is a depository financial intermediary whose primary function is to consolidate deposits and channel the funds into lending activities. In performing this function, FIs facilitate the transformation and benefits of maturity, risk and liquidity between savers, borrowers and third parties, which enables profit and efficiency in exchange. In this sense, credit unions offer a commodity in the banking space; that is, its solutions have the mark of substantial fungibility in that they are easily substituted with competing solutions of the same type, like it or not.

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