Unit Test Active What is a major difference between retail banks and credit unions? Retail banks only serve businesses, while credit unions only serve individuals. Retail banks operate in order to earn profit, while credit unions are nonprofit. Retail banks only have small local branches, while credit unions are nationwide. Retail banks manage a person's money, while credit unions focus on providing loans. Ren

A key distinction is that retail banks operate with a profit motive, aiming to generate returns for their shareholders, whereas credit unions are nonprofit organizations that prioritize benefiting their members through lower fees and better rates. This nonprofit structure allows credit unions to reinvest earnings back into services that directly support their members, creating a more community-oriented approach to banking. In terms of accessibility, many credit unions have regional limitations; they're often established to serve a specific group or community, which can sometimes make them less widely available than retail banks, which usually have a broader national presence and a wide range of branches and ATMs. However, the growing trend of online and mobile banking is helping to bridge that gap, allowing credit unions to expand their reach beyond physical locations.