The JAK Members Bank, or JAK Medlemsbank, is a cooperative, member-owned financial institution based in Skövde, Sweden, and based on a concept that arose in Denmark in 1931.[1][2][3] JAK is an acronym for Jord Arbete Kapital in Swedish or Land Labour Capital, the factors of production in classical economics. A membership of approximately 39,000 (as of December 2015) dictates the Bank's policies and direction. The Board of Directors is elected annually by members, who are each allowed only one share in the bank. All of the bank's activities occur outside of the capital market as its loans are financed solely by member savings. Administrative and developmental costs are paid for by membership and loans.
JAK banking employs the "Saving Points" system: members accumulate Saving Points during saving periods and use them when applying for a loan. The concept is that one is allowed to take out a loan for oneself to the same extent as one allows other people to be granted loans, saving into one's account. For this reason (applying for a loan), earned Saving Points must be equal to spent Saving Points to ensure sustainability. If a member is borrowing more saving points than they currently possess, they are obliged to continue accumulating "aftersavings" during the repayment period. Aftersavings are a fixed quota of money that a member must save after one's loan was made, so they can continue to earn Saving Points. This way, at the end of the repayment period, Saving Points earned will be equal to Saving Points spent, and at that time they will be able to have back all their aftersavings.