What are the advantages of JAK members bank?

This study analyses how an interest-free cooperative bank is operating and its advantages. Qualitative data is collected in form of unstructured interviews and direct observation to conduct a case study of an alternative bank JAK Members Bank in Sweden, running an interest-free loan and savings system for individuals and small companies and associations.  Cooperative enterprises have been democratically owned and controlled by their members and have taken economic and social responsibility for the development of local societies for the benefits of the members and the society. Our research shows that JAK- Members Bank creates relations with the members by communicating their value base as a cooperative organisation. They get advantage to attract new members by stressing democratic management and members´ sovereignty, educating members, involving young people, networking with people and organisations globally and using mouth to mouth marketing.  For the cooperative bank we can see an enlargement of the market and members participation and also need for innovations.  New entrepreneurial activities face difficulties because of lack of financial resources. The study contributes to the literature of cooperative financial sector, by presenting a model of successful operation of JAK. We recommend managers to develop networks with members and other stakeholders to promote cooperative financial banking activities in the local economy.