Sustainability of Financial Cooperatives as a Competitiveness Strategy Against Traditional Banks in the Interior of Rio Grande do Sul

Objective: The article objective was to analyse the sustainability of financial cooperatives as a strategy to compete with other large financial institutions operating in the regional market. Theoretical framework: The cooperative system in the world, financial cooperatives and their relationship with their stakeholders for their legitimacy, sustainability and competitiveness in the market where they operate. Method: The research was applied in nature, with a qualitative approach to the problem and a descriptive approach to the objectives. The procedures used were documentary research in the cooperatives’ annual reports, and a multiple case study with non-participant observation on their websites. The information was processed by content analyse of the research conducted. Results and discussions: The article presented the financial cooperatives, the social role they play, their financial viability and the gains of those who use the cooperative model. The results indicate that Sicredi União RS/SC, Sicoob Crediplanalto SC/RS, Cresol Missões Fronteira RS and Unicred Eleva, which operate in the north and northwest regions of Rio Grande do Sul, are solid financial cooperatives. They provide returns that satisfy their priority stakeholders, legitimizing them in their communities, and guaranteeing their long-term sustainability, with competitive potential compared to other financial institutions operating in the region. Originality/Value: The originality and research contributions lie in demonstrating the viability and sustainability of financial cooperatives operating in the region and the importance of cooperativism for the regions development and for the users of this system in Brazil.