Member-owned institutions are organizations that are owned and operated by their members, rather than by external shareholders. This structure allows members to have a direct say in the decision-making processes and policies of the institution. Common examples include credit unions and cooperatives, where profits are often reinvested into the organization or distributed among members. These institutions prioritize the needs and interests of their members, fostering a sense of community and collaboration. By focusing on member benefits rather than profit maximization, they often provide services like lower fees and better rates, making them an attractive alternative to traditional financial institutions like banks.