Which financial institution primarily focuses on providing services for members at lower costs?

The correct answer is credit unions because these financial institutions are specifically organized as non-profit entities that prioritize serving their members rather than generating profits. Credit unions typically offer lower fees, higher interest rates on savings, and lower interest rates on loans when compared to for-profit financial institutions like commercial and retail banks. This member-centric approach is made possible because credit unions pool resources from their members, allowing for a focus on providing affordable financial services and fostering a community-oriented banking experience.

In contrast, commercial banks and retail banks prioritize profit generation, often leading to higher fees and interest rates as they work to satisfy shareholder expectations. Depository banks, which include both commercial and retail banks, also operate with a profit motive, thus not primarily focusing on lower cost services for consumers in the same way that credit unions do.