How do finance companies differ from banks credit unions and building societies?

Answer 1

Finance companies primarily focus on providing loans and financing options to consumers and businesses, often specializing in specific areas like auto loans or personal loans, while not accepting deposits like banks do. Banks offer a broader range of financial services, including savings and checking accounts, and are typically more regulated. Credit unions are member-owned and nonprofit institutions that often provide better interest rates and lower fees, prioritizing community service over profit. Building societies, mainly found in the UK, function similarly to banks but are member-owned and focus primarily on savings and mortgage lending.