Financial cooperatives are member-owned institutions that provide financial services, such as savings accounts, loans, and insurance. They operate on the principle of mutual assistance, where profits are shared among members rather than distributed to external shareholders. This structure allows members to benefit from lower fees and better interest rates compared to traditional banks. These cooperatives are often formed around a common bond, such as a profession, community, or shared interest. Examples include credit unions and mutual insurance companies. By prioritizing the needs of their members, financial cooperatives promote financial inclusion and community development.