If you are an investor or an entrepreneur who is used to collaborating with banks and taking advantage of their services, know that there are other types of financial institutions that allow you to access the same privileges, but with lower rates. reduced. These are called: member banks.
Discover, in this article, everything you need to know about this kind of banks. What does a mean member bank ? What are the advantages of becoming a member customer? How to become a member of a bank?
What does a member bank mean?
As we all know, a bank is a for-profit financial institution whose objective is to preserve and grow your savings. That said, like all lucrative establishments, the bank has its own projects that allow it to evolve. However, to stay the course and complete its projects, the bank needs external financing. And that's where the principle of a member bank.
Un member financial institution is, above all, a mutual or cooperative bank. This allows the client to intervene in his capital by buying shares. Each client holding shares is called a member. In France, for example, you can find several member banks.
How to recognize a member bank?
You can recognize a member bank by:
- its capital;
- the presence of agencies.
In fact, member banks are, above all, a classic establishment. In other words, a network bank. Why ? Well, imagine that you buy shares in a particular bank, you will legitimately become a member or associate of the establishment. So, technically, you must be close to your bank, directly or through its branches, so that you can take advantage of the various rights that will be granted to you as a member.
What are the advantages of becoming a member customer?
Buy shares in the capital of the bank and become a member have several advantages, among them:
Participate in bank projects
Become a member of a bank is similar to the status of associate of a company. Indeed, the title of member offers the possibility to its holder to participate in the bank's projects. He therefore has the right to vote at the general meeting, in the presence of the various active members of the bank, in particular other members. Obviously, the larger the shares, the more the member's voice account at the general meeting.
Take advantage of discounts on all bank services
A member is a private customer of the bank. That said, since he participates in the development and evolution of the bank's projects, the latter grants him discounts on all the services offered. He will thus have the possibility of taking out a bank loan while benefiting from a reduced interest rate.
Free access to bank documents
By becoming a member, you will have access to all bank documents. You will thus have the opportunity to see the evolution of the bank over the past years, particularly the various projects it has maintained, so that you can propose a new strategy or investment idea that will make the capital of the mutual institution.
Be the first to know about the bank's new services
As a member, you have the privilege of being among the first people to learn about the new services offered by the bank in which you are a member.
How to become a member of a bank?
If you member status interests you, know that the procedure to become one is very simple. In fact, you just have to follow these steps:
Consult a financial adviser of the bank in question!
The first step is to consult an advisor from a mutual bank of your choice so that you can have all the information on the advantages and constraints of this status.
Determine the amount of shares you want to buy!
The second step is to determine the capital shares that you buy. Be aware, however, that the shares are capped so that everyone can participate! Nevertheless, with 5 or 20 euros, you can very well become a member.
So ! You now know that the steps to become members are very simple. However, you should know that this status is not lucrative, in other words, you will not receive a profit in exchange for your contribution.
