Operative Bank

By: EconomyWatch Content   Date: 28 October 2009

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Co-Operative Bank Plc is a commercial bank in the UK and Guernsey, with its headquarters in Manchester. The bank has high ethical standards and does not invest in companies associated with climate change, arms trade, animal testing and genetic engineering. Also, it does not invest in companies that use sweat labor. The Co-Operative group formed a holding society called Co-Operative Financial Services in 2002 and brought The Co-Operative Insurance Society and the bank under the newly formed holding company’s control. The Co-Operative Bank is not owned by its members or account holders.

Cooperative Independent Financial Advice

The Co-Operative Bank provides independent financial advice with the help of Co-operative Independent Financial Advisers (CIFA). The CIFA provides independent advice especially on retirement, investment and inheritance tax planning. The CIFA has more than 100 advisers throughout the UK, with specialists in corporate planning and pensions. CIFA has around 70,000 customers across the UK.

Difference Between Co-Operative Bank and Other Commercial Banks

There are many differences between the objectives of Co-Operative bank and other banks. The purpose of the cooperative society is to meet the needs of individuals and communities through ethical means. On the other hand, an investor owned business aims at maximizing the profits of its investors. In the case of commercial banks, any change in the top management can result in a major change in the structure and philosophy. However, in the case of a cooperative bank, the structure and philosophy are not subject to change. Moreover, Cooperative Bank aims at social inclusion and social empowerment, apart from making profits. Other commercial banks do not have such an agenda.

The Co-operative Bank offers loans without any collateral (such loans being called unsecured loans) at reasonable interest rates. Usually, the interest rate from a cooperative bank is lower than the interest rate on loans from other commercial banks. The bank has the philosophy of borrowing sensible amounts and repaying at affordable interest rates and in reasonable timeframes. The most important aspect you should remember about this bank is that it offers loans at fixed rates. Thus, it is advantageous to invest in or borrow from a cooperative bank when the financial markets are volatile.


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