Cooperative banks, often called mutual savings and loan firms, are often mistaken for credit unions. Not exactly a credit union, not exactly a traditional bank, cooperative banks are in a league all their own. That's why help with cooperative banks may be necessary as they have individual needs. Help can come from a variety of sources: hiring a consultant, getting training for yourself and your employees or just researching more about other cooperatives.

Cooperative banks are usually governed and set up under both banking and cooperative regulations. Services are provided to members and non-members alike. And most cooperative banks are also traded publicly, giving a portion of the ownership to shareholders who don't necessarily have to also be members.

Consider the following information on cooperative banks:

1. While cooperative banks elect a local board to handle daily operations, tactical decisions, such as cooperative banks training, are most often handled through a head office.

2. Since the 1980s, cooperative banks have experienced the dramatic changes in all banking sectors with increased levels of consolidation and some institutions moving toward sole shareholder ownership.

3. Some cooperative banks boast higher profitability for their customers because of fewer overhead costs.

Action Steps
The best contacts and resources to help you get it done

Compare your institution with other cooperative banks

How does your cooperative bank stand up to competitors? It doesn't hurt to look around to see what others are doing. What works well? What doesn't?

I recommend: Check out the different structures and services offered by a national cooperative, National Consumer Cooperative Bank, and a local cooperative, Med-way Cooperative Bank in Medway, MA.

Consider cooperative banks training

Take advantage of opportunities available to improve your employee and business performance. There's a wealth of information out there to learn, from online seminars to in-house training and more. International, national and local standards and regulations should also be kept in the forefront.

I recommend: International accounting practices for cooperatives are the focus of a working group of the International Co-operative Banking Association. The Edcomm Group offers a variety of training opportunities and curriculum for the banking industry.

Work with a cooperative banks consultant

An independent banking consultant may have the cooperative banks advice and insight to evaluate business strengths and weaknesses and become a strategic partner. Make sure to choose a consultant firm that inspires trust in its abilities and one you are comfortable working with on a long-term basis.

I recommend: Consider hiring a banking consulting firm such as Catalyst Consulting Group or Accenture to reposition and strengthen your cooperative bank.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To remain cooperative banks, members must control government and capital, according to principles 2-4 of the Statement on the Co-operative Identity. Cooperative banks must be careful not to lose entire control to shareholders, which would effectively eliminate cooperative status. Working with non-members, although permitted, can also lead to shaky ground if they become the majority of your clients.