A co-operative bank is a financial institution that operates on co-operative guidelines, where members and customers hold ownership stakes in the organization. Unlike traditional banks that are profit-driven and owned by shareholders, co-operative banks are governed by their members, and decisions are made to serve their collective interest.
Cooperative Banks aim to provide financial services, including savings, loans, and mortgages, to their members at competitive rates, while fostering social and economic development within communities.
What is Cooperative Bank Definition?
The core philosophy of a co-operative bank is democratic control, ensuring that each member has an equal vote regardless of the amount of money they have invested. Their primary focus is on improving the financial well-being of the community rather than maximizing profit.
What is History of Co-operative Bank?
The origins of co-operative banking date back to the 19th century, with the first co-operative banks emerging in Europe. These banks were created to meet the financial needs of people who were excluded from mainstream financial institutions. The goal was to provide affordable financial services to marginalized groups like farmers, artisans, and small business owners.
In 1844, the Rochdale Society of Equitable Pioneers in England laid the groundwork for the modern co-operative movement, which led to the establishment of co-operative banks. Later, Germany’s Raiffeisen model of co-operative credit societies gained popularity and spread across Europe. Over time, this concept expanded to other parts of the world, including North America, Asia, and Africa.
Today, co-operative banks are an integral part of the global financial system, offering services to millions of members across different regions while adhering to fairness, transparency, and community development principles.
Cooperative Banking
Cooperative banking refers to retail and commercial banking that is run cooperatively. Cooperative banks accept deposits and lend money across the majority of the world.
Cooperative banking, as focused on retail banking by credit unions, mutual savings banks, building societies, and cooperatives, as well as commercial banking services supplied by mutual organizations (such as cooperative federations) to cooperative organizations.
Co-operative Bank Customer Services
One of the standout features of co-operative banks is their customer-centric approach. These banks are committed to providing a range of financial services tailored to meet the needs of their members.
Some of the primary services offered include:
- Savings Accounts: Co-operative banks offer competitive interest rates on savings accounts, ensuring that members can grow their wealth over time.
- Loans: These banks provide a variety of loan options, including personal loans, business loans, and educational loans at lower interest rates compared to commercial banks.
- Mortgages: Co-operative banks offer flexible mortgage options to help members purchase homes or refinance existing mortgages.
- Investment Services: Members can access financial planning and investment services, designed to help them achieve long-term financial goals.
- Insurance: Many co-operative banks offer insurance products, including health, life, and property insurance, often at discounted rates.
Co-operative Online Banking Services
With the rise of online banking, co-operative banks have embraced technology to enhance customer convenience. Co-operative banks now offer online banking services that allow members to access their accounts, transfer funds, pay bills, and apply for loans—all from the comfort of their homes or offices.
Some of the features of online banking services include:
- 24/7 Account Access: Members can view account balances, monitor transactions, and download statements at any time.
- Fund Transfers: Online platforms allow members to transfer money between their accounts or to other individuals within seconds.
- Loan Applications: Members can apply for loans online, track their applications, and receive approval notifications without visiting a physical branch.
- Bill Payments: Members can pay utility bills, insurance premiums, and other recurring expenses directly through the online banking portal.
How to Login to Co-operative Bank Online Banking?
Accessing the co-operative bank login is a straightforward process that ensures members can securely access their accounts. To log in:
Step 1: Visit to co-operative bank Official Website: Navigate to the co-operative bank’s official website https://www.co-operativebank.co.uk/ and click on the ‘Online Banking’ or ‘Login’ tab.
Step 2: Enter Login Credentials: Provide your username and password, which you would have set up during the online banking registration process.
Step 3: Complete Security Check: Some banks may require additional security measures, such as entering a one-time password (OTP) sent to your registered mobile number or email.
Step 4: Access Your Account: Once you successfully log in, you can manage your accounts, check balances, and carry out various banking transactions.
If members forget their login credentials, they can retrieve or reset them by following the bank’s password recovery process.
Co-operative Bank Playbill Services
For members looking to pay bills seamlessly, co-operative bank paybill services are available, allowing them to make payments to service providers, government agencies, and other entities. These services can be accessed through mobile banking apps or online banking platforms. Some common uses for the paybill feature include:
- Utility Bills: Pay for electricity, water, and other utilities directly from your bank account.
- Mobile Recharge: Top up mobile phone balances using the bank’s mobile banking app.
- Loan Repayments: Members can repay co-operative bank loans through the paybill option.
Co-operative Banks by Region
Co-operative banks exist across various regions, adapting their services to the needs of local communities.
Some notable regions include:
Europe:
Co-operative banks in Europe are well-established, with institutions like Crédit Agricole in France and Raiffeisen in Germany leading the charge.
North America:
In the U.S., credit unions, which operate similarly to co-operative banks, offer financial services to millions of Americans.
Asia:
In countries like India and Japan, co-operative banks play a vital role in providing financial services to farmers and small business owners.
Africa:
Co-operative banks in Africa support rural communities by offering access to savings, loans, and other essential banking services.
United states:
In 2013, credit unions in the US had 96.3 million member and $1.06 trillion in resources. The sector had five times lower failure rate than other banks during the 2007–2008 financial crisis and more than doubled lending to small businesses between 2008 and 2016, from $30 billion to $60 billion, while lending to small businesses overall during the same period declined by around $100 billion.
Public trust in credit unions in the United States stands at 60%, compared to 30% for big banks and small businesses are 80% less likely to be dissatisfied with a credit union than with a big bank.
India:
Cooperative banks are crucial to the Indian economy, particularly in rural regions. In large cities, they mostly service small businesses and people who are self-employed. They have been authorized under the Cooperative Societies Act of 1912. The Reserve Bank of India regulates them under the Banking Regulation Act (1949) and the Banking Laws (Application to Cooperative Societies) Act (1965). Anyonya Sahakari Mandali, founded in 1889 in the Baroda province, is India’s oldest cooperative credit union.
United Kingdom:
British building societies expanded into general-purpose savings and banking institutions with ‘one member, one vote’ ownership and might be considered a type of financial cooperative (although many demutualized into traditionally owned banks in the 1980s and 1990s). Until 2017, the Co-operative Group included The Co-operative Bank, which, despite its name, was not a true co-operative because it was not directly owned by its members. Instead
It began in part by the Co-operative Banking Group, a co-operative holding firm. It still has an insurance company, The Co-operative Insurance, which is known for boosting ethical investment. For the fiscal year 2021/2022, the British building society industry had approximately £483 in assets, with the cooperative Nationwide Building Society accounting for more than half.
Quebec:
Credit unions were pioneered by the caisse populaire movement, which was founded by Alphonse Desjardins in Quebec. Desjardins established the first credit union in North America in 1900, from his house in Lévis, Quebec, launching the Mouvement Desjardins. He was focused in providing financial security to working people.
Canada:
Credit unions (or caisses populaires in French) in Canada provide cooperative banking. Credit Union Central of Canada had 357 associated credit unions and caisses populaires as of September 30, 2012. They had 1,761 branches around the country, with 5.3 million customers and $149.7 billion in assets.
Co-operative Bank Customer Care
To ensure members receive top-notch service, co-operative banks provide excellent customer care.
Members can contact the bank’s customer service for assistance with:
- Account Inquiries: Resolve any issues related to account balances, transactions, or savings.
- Loan Services: Get support for loan applications, approvals, or repayments.
- Technical Support: Assistance with online banking issues, password resets, or mobile banking app concerns.
Co-operative Bank Contact Numbers
Co-operative bank numbers serve as the primary point of contact for members. Each bank has a dedicated customer service line that members can call for inquiries and support. Typically, these numbers are toll-free and available 24/7 to ensure that members can reach out at any time.
Cooperative bank balance check number
Account Balance Enquiry: Give a missed call to 9029011133 from your registered mobile number
Account Statement Enquiry: Give a missed call to 9029011144 from your registered mobile number
Need to report a scam? Call 159.
Online banking support
Find out how to register for online banking, request a username reminder or password reset and stay safe online You can also call :
For current accounts and savings accounts: 03457 212 212
For credit cards: 0345 600 6000
Savings: 03457 212 212
Mortgages: 08000 288 288
How to find Co-operative Bank ATM and Branch Location
To find Co-operative Bank ATM and Branch Location easy with Branch Finder:
https://www.co-operativebank.co.uk/help-and-support/contact-us/branch-finder/
Co-operative Bank Loans and Mortgages
One of the key offerings of co-operative banks is their wide range of loan and mortgage services.
Co-operative banks are known for providing:
- Personal Loans: These loans are ideal for members needing quick financial support, such as for medical emergencies, education, or home improvements.
- Business Loans: Small and medium-sized enterprises (SMEs) can benefit from business loans at competitive interest rates, designed to help them grow and expand.
- Mortgages: Co-operative banks offer attractive mortgage rates for members looking to purchase homes, with flexible repayment terms.
- Agricultural Loans: In regions where agriculture is a key industry, co-operative banks offer loans specifically designed for farmers and agricultural businesses.
- With lower interest rates and flexible terms, co-operative banks provide an affordable option for their members to secure financial products compared to traditional banks.
Banking Institutions
Cooperative Banks
Cooperative banks are customer-owned institutions that operate on a “one person, one vote” principle. They offer savings, loans, and other services to both members and non-members. While some are publicly traded, this can dilute member control, making them semi-cooperative. Their operations are often integrated, with local branches managing day-to-day affairs but requiring central office approval for major decisions.
Credit Unions
Credit unions promote thrift and provide affordable loans and financial services to members who share a common bond. Funded by member deposits, they typically offer personal loans and, in some countries, business loans and mortgages. They are generally smaller and more localized than cooperative banks.
Land Development Banks (LDBs)
LDBs provide long-term loans to promote agricultural development. Established in Punjab in 1920, they focus on financing land improvement and boosting agricultural productivity.
Building Societies
Building societies, found mainly in the UK and Commonwealth countries, provide mortgages and other banking services. Members control the society through a “one-member, one-vote” system, and they can access wholesale markets for funding.
Other Institutions
Mutual savings banks and loan associations were once widespread but have declined in significance. Trustee savings banks differ as they are controlled by trustees, not depositors.
International Associations
Key global cooperative banking associations include the European Association of Co-operative Banks and the International Cooperative Banking Association (ICBA).
Conclusion
cooperative bank offer a unique blend of community-driven values and modern financial services, making them an excellent choice for those seeking personalized banking with a focus on mutual benefit. Whether you’re looking for loans, mortgages, or accessible customer care, co-operative banks provide reliable support while prioritizing the wellbeing of their members.
Commonly Asked Questions
What do you mean by co-operative bank?
Cooperative banking is a small financial organization founded by a group of people to meet the capital needs of their local community. These financial institutions are owned and governed by their members, and the public chooses the board members to manage operations.
Is cooperative a government bank?
Cooperative banks are private institutions. However, they are societies governed by a society’s act, whereas national banks are corporations governed by a company’s act in addition to the nationalized law.
Is cooperative bank under RBI?
Reserve Bank of India. The Reserve Bank of India’s Urban Banks Department is responsible for regulating and monitoring main (urban) cooperative banks, often known as Urban Cooperative Banks (UCBs).
Is co-operative bank safe?
Is the Cooperative Bank insured? You can also rest comfortably here. The Co-operative is covered by FSCS insurance2, which ensures that any money you have in a Co-operative bank or other Co-op brands such as Britannia and Smile is protected to the fullest extent permitted by law.
Who control state cooperative banks?
State cooperative banks operate by the requirements of the relevant State Cooperative Societies Acts. Furthermore, the RBI regulates State Cooperative Banks under the terms of the BR Act of 1949, and NABARD supervises them.
