--- title: 3 Co-operative Options for the Financial Sector description: 3 Co-operative Options for the Financial Sector --- [![Co-operatives First](https://blog.cooperativesfirst.com/hubfs/CooperativesFirst_December2018%20_Theme/Images/logo.png)](https://cooperativesfirst.com/) - [HOME](https://cooperativesfirst.com/) - [ABOUT US](https://cooperativesfirst.com/about-us/about-us/) - [WHO WE ARE](https://cooperativesfirst.com/about-us/about-us/) - [BOARD OF DIRECTORS](https://cooperativesfirst.com/about-us/board-of-directors/) - [ANNUAL REPORT](https://cooperativesfirst.com/about-us/annual-report/) - [OUR SERVICES](https://cooperativesfirst.com/what-we-do/inspiring-leadership/) - [ONLINE GOVERNANCE COURSE](https://cooperativesfirst.com/governance/) - [CREATING CONNECTIONS WORKSHOP](https://cooperativesfirst.com/workshop/) - [RESOURCE SITE](https://cooperativesfirst.com/what-we-do/resources/) - [INSPIRING LEADERSHIP](https://cooperativesfirst.com/what-we-do/inspiring-leadership/) - [EXPLORING OPPORTUNITIES](https://cooperativesfirst.com/what-we-do/exploring-opportunity/) - [CREATING A NEW BUSINESS](https://cooperativesfirst.com/what-we-do/create/) - [HELPING CO-OPS THRIVE](https://cooperativesfirst.com/what-we-do/thrive/) - [WHAT IS A CO-OP](https://cooperativesfirst.com/co-operative-faqs/) - [CONSIDER A CO-OP](https://cooperativesfirst.com/consider-a-co-op/) - [TYPES OF CO-OPERATIVES](https://cooperativesfirst.com/types-of-cooperatives/) - [Co-operative FAQs](https://cooperativesfirst.com/co-operative-faqs/) - [BLOG](https://cooperativesfirst.com/blog/) - [THE COMMON SHARE PODCAST](https://cooperativesfirst.com/common-share-podcast/) - [THE BACKROAD DIARIES](https://thebackroaddiaries.com/) - [CONTACT](https://cooperativesfirst.com/contact/) - [HOME](https://cooperativesfirst.com/) - [ABOUT US](https://cooperativesfirst.com/about-us/about-us/) - [WHO WE ARE](https://cooperativesfirst.com/about-us/about-us/) - [BOARD OF DIRECTORS](https://cooperativesfirst.com/about-us/board-of-directors/) - [ANNUAL REPORT](https://cooperativesfirst.com/about-us/annual-report/) - [OUR SERVICES](https://cooperativesfirst.com/what-we-do/inspiring-leadership/) - [ONLINE GOVERNANCE COURSE](https://cooperativesfirst.com/governance/) - [CREATING CONNECTIONS WORKSHOP](https://cooperativesfirst.com/workshop/) - [RESOURCE SITE](https://cooperativesfirst.com/what-we-do/resources/) - [INSPIRING LEADERSHIP](https://cooperativesfirst.com/what-we-do/inspiring-leadership/) - [EXPLORING OPPORTUNITIES](https://cooperativesfirst.com/what-we-do/exploring-opportunity/) - [CREATING A NEW BUSINESS](https://cooperativesfirst.com/what-we-do/create/) - [HELPING CO-OPS THRIVE](https://cooperativesfirst.com/what-we-do/thrive/) - [WHAT IS A CO-OP](https://cooperativesfirst.com/co-operative-faqs/) - [CONSIDER A CO-OP](https://cooperativesfirst.com/consider-a-co-op/) - [TYPES OF CO-OPERATIVES](https://cooperativesfirst.com/types-of-cooperatives/) - [Co-operative FAQs](https://cooperativesfirst.com/co-operative-faqs/) - [BLOG](https://cooperativesfirst.com/blog/) - [THE COMMON SHARE PODCAST](https://cooperativesfirst.com/common-share-podcast/) - [THE BACKROAD DIARIES](https://thebackroaddiaries.com/) - [CONTACT](https://cooperativesfirst.com/contact/) March 15, 2018 • Kyle White ## 3 Co-operative Options for the Financial Sector The Co-operatives First team is regularly asked “[what is a co-operative](https://cooperativesfirst.com/isl/uploads/2018/02/CF_WhatIsACoop_Brochure_WEB.pdf)?” and many of our [posts](https://cooperativesfirst.com/blog/) display various uses of the co-operative model to explore this question. This week we’re going to outline three types of co-operatives in the financial sector. ## Mutual Insurance A mutual is a company owned by its policy/account holders. The difference from many other types of co-operatives is owners (policy holders) of a mutual do not generally provide capital through the purchase of shares. Mutuals originated in England in the 1600s and made their way to North America via [Ben Franklin](http://www.pbs.org/benfranklin/l3_citizen_insurance.html). (Yes, that Ben Franklin). In 1752, Franklin helped form the Philadelphia Contributionship, which provided fire insurance for over 140 policy holders. Each policy holder made equal payments to any policy holder experiencing losses resulting from fire. Once the policy ended, the premium was returned to the policy holder. Throughout the 19th and 20th centuries, several other mutual insurance companies were started by local farmers, home-owners, businesses, or car owners to create security and protection for their families. The most notable of these being [Nationwide](https://cooperativesfirst.com/blog/2018/01/17/another-3-co-ops-you-probably-didnt-know-were-co-ops/), which started in the 1920s to provide auto insurance for farmers in Ohio. Today, some American mutual insurance companies are giants in their industry, with recognizable names like State Farm, Liberty Mutual Insurance, and Nationwide leading the industry. In Canada, our mutual insurance companies lack national recognition, but serve important roles as local regional service providers. [Saskatchewan Mutual Insurance Company](https://www.saskmutual.com/), [Portage la Prairie Mutual Insurance](https://www.portagemutual.com/), and [Red River Mutual Insurance](https://www.redrivermutual.com/) are some local examples. Ontario is home to dozens of locally-owned mutual insurance companies, the most of any province. ## Credit unions Mutuals are not the only type of co-operative operating in the financial sector. [Credit Unions](https://www.ccua.com/~/media/CCUA/member_corner/publications/pdfs/2017_CEIR_FF.PDF?la=en) are locally-owned banks whose shareholders open an account with the organization. There are 275 credit unions across Canada, representing over 5.6 million members, contributing over $6.5 billion the Canada’s GDP annually. Banking with a credit union is [a different type of banking](https://www.ccua.com/credit_union_difference) and a great way to keep your money local, supporting local businesses, community development and families. Your local credit unions invest locally through loans, mortgages and grants or donations. Plus, profits are returned to local shareholders through patronage rebates. Credit unions can also range in size from [Vancity](https://www.vancity.com/) in British Columbia (18 billion in assets) and [Servus](https://www.servus.ca/life) in Alberta (13.5 billion in assets) at the top end of the large credit unions to smaller one or two branch credit unions with a few million in assets. [![governance-course](https://blog.cooperativesfirst.com/hs-fs/hubfs/Imported_Blog_Media/CF_Web_Banner_728x80_02.gif?width=728&height=80&name=CF_Web_Banner_728x80_02.gif)](https://cooperativesfirst.com/governance/) ## Investment co-ops Another option for keeping your money local is investing in a [community investment co-op](https://cooperativesfirst.com/blog/2017/11/10/grow-your-community-by-investing-locally/). Originating in Nova Scotia, the community investment co-op model offers community members a platform to invest in creating a pool of capital designed to support local business, community development and other economic activity. The co-op makes investments on behalf of its shareholders into local businesses or economic activity, which supports the local economy and creates a return for investors. These firms can be quite specific in their values and goals. The [Creston and District Community Investment Co-op](http://www.communityinvestmentcoop.ca/) has a focus on “social issues, environmental sustainability, and local agriculture and food systems” and supports local businesses by providing accessible loans. Sangudo Opportunities Investment Co-operative also values local, and has a mandate to support youth employment, local businesses and grassroots initiatives and leadership. Both firms value keeping wealth local, which supports Main Street over Wall Street. If you’re interested in accessing locally-owned financial services and keeping money in your community, [consider a co-op](https://youtu.be/ayps52UCr1k). --- If you enjoyed this article, you may like: [Grow your community by investing locally](https://cooperativesfirst.com/blog/2017/11/10/grow-your-community-by-investing-locally/) ## Stay in the know. Sign up for our monthly newsletter. Share to FacebookFacebookFacebook46 [Share to TwitterTwitterTwitter](https://twitter.com/intent/tweet?url=https://blog.cooperativesfirst.com/blog/2018/03/15/3-co-operative-options-for-the-financial-sector&text=3%20Co-operative%20Options%20for%20the%20Financial%20Sector) Share to PinterestPinterestPinterest #### [Previous Trust, Technology and Credit Unions: an interview with Eric Dillon](https://blog.cooperativesfirst.com/blog/2018/03/21/trust-technology-and-credit-unions-an-interview-with-eric-dillon) #### [Next Finding opportunity for self-determination in a "digital divide"](https://blog.cooperativesfirst.com/blog/2018/03/08/finding-opportunity-for-self-determination-in-a-digital-divide) 4-1810 8th Street East Saskatoon, SK S7H 0T6 \_\_ Monday - Friday 8:30am to 4:30pm [Email](mailto:info@cooperativesfirst.com) [Call](tel:306-382-4410) Map #### Co-operatives First 4-1810 8th Street East Saskatoon, SK S7H 0T6 Canada