Credit unions provide ownership and financial empowerment to members, communities they serve

When it comes to your money, every decision you make seems important. Where to spend, where to save, where to invest, etc. can all be difficult choices. Placing your hard-earned money in the hands of someone else can seem even more daunting. Many folks seek a sense of face-to-face interactions, personalized customer care, relatable consumer products and perks, and involvement in the communities they live and work in.

Many find all of that and more in a credit union. Rather than traditional banks which are for-profit, credit unions are not for profit. Banks have shareholders, but credit unions are member-owned.

Jennifer Borowy is the President and CEO of Michigan First Credit Union, and brings a lot of experience in the credit union and CDFI industry to her role. Although she’s been with the organization for about seven years, Michigan First Credit Union has a lengthy history of serving the Detroit community.

Michigan First Credit Union started in 1926, nearly 100 years ago as Detroit Teachers Credit Union.

“We are considered the oldest active credit union in the state of Michigan,” Borowy says. “A lot of credit unions started with some sort of organization, and ours was teachers. We had nine teachers deposit $150 to serve other teachers and their families. Over the past almost 100 years, we’ve continued to evolve where we are able to serve anyone that lives, works, or worships in the state of Michigan — providing consumer and business services.”

Michigan First is aptly named, given its many historical landmarks and timely accomplishments. By 1941, they became the largest teacher credit union in the world, and the largest credit union in the world by 1952. They were the first credit union in Michigan to install an electronic computer in 1961. Fast-forward to 2001, they rebranded their name, expanding their customer base and embracing a diverse membership.

In 2014, they became the first credit union in Michigan to get a statewide charter, opening up membership to anyone in the state, including the Upper Peninsula. They’ve also grown to include partnerships and branches within Walmart and Kroger stores, and were ranked in the top 10% of largest credit unions in the country by 2020. By the following year, they were named Credit Union of the Year by the National Association of Federally-Insured Credit Unions.

Today, members can utilize online account opening, a custom-built Michigan First mobile app, an online banking platform, and access to 33 branches and over 1600 surcharge-free co-op ATMs throughout the state.

“Our sole mission is to provide the highest quality member experience. We aim to make banking accessible for everyone,” Borowy says. “One of the things that makes it really special here is that we have a call center we do not outsource. We are available 24-7, 365 days a year for our members. If a member lost their debit card at two in the morning and needed to reprint it, they could come to our headquarters at Evergreen and get a new one. We answer calls around the clock, and we never shut down for our members.”

That personal touch in customer service and care is something that Borowy says often sets them apart from traditional banks.

“We’re proud to be able to offer personalized lending,” Borowy says. “We do not make decisions based on credit score with our lending approvals. It is truly just a conversation with our members to understand their needs. There are a lot of people who have had obstacles and challenges in their lives, and it might not look very good on their credit report. We have conversations around that and provide tailored solutions for those members.”

By avoiding those one-size-fits-all solutions, Michigan First instead provides expert financial guidance, free informational seminars, financial planning consultants, credit report reviews and help improving and increasing credit, tax return discounts, and more perks to its members throughout every stage of their financial journey.

Those unique, personalized services help gain trust for customers who are entrusting important financial decisions with the credit union. The face-to-face interactions in branches, while many banks and institutions have gone away with in-person services, also helps establish a peace of mind for those who prefer face-to-face banking. Many members utilize in-store branches in Kroger, Meijer, and Walmart.

“We have a lot of really great team members that specialize in having really good conversations with people to be able to understand what they’re going through, what they need, what their financial goals are down the line — and then can provide a solution tailored to them,” Borowy says.

For those living paycheck to paycheck, MinuteMoney is an emergency loan product for unexpected financial challenges. Members can get money into their account within 60 seconds, without a credit check, to use for things like tow trucks, car repairs, or unexpected medical expenses. Other member services include overdraft protection, and secured credit cards used to help build credit.

When it comes to saving money, Michigan First supports its members in many ways, including shopping around and finding the best prices for insurance rates for them. A team of qualified agents compares quotes from over 40+ carriers to find the best policies and prices on auto, home, renters, life and even pet insurance for members.

“We also have a Turning Point Home Loan which is designed for people who have dealt with financial challenges and don’t qualify for a traditional mortgage option,” Borowy says. “For instance, borrowers who have had recent bankruptcies or foreclosure and maybe don’t have enough cash to put down to get their mortgage, we will offer down payments as low as 10%, helping our members achieve their dream of home ownership.”

Borowy says dollars made in the credit union go back to the communities in which they serve. Foundational scholarships are awarded to students, paying homage to their education-based foundation. There’s also a First for Good program, with pop-up events promoting random acts of kindness like buying groceries or gas for residents.

Also being involved within the Detroit CDFI coalition and community, enables Michigan First and other Detroit-area financial institutions to collaborate, further benefiting their members.

“It’s very special because you have a number of different financial institutions brought together who are openly talking about the struggles you see people and businesses are facing,” Borowy says. “We are trying to find unique solutions that we can then offer to continue making a difference for those that we are serving.”

Having a serving heart is a requirement for working at a credit union if you ask Borowy, who almost went into the teaching profession.

“To work in the credit union space, you really have to be able to be patient with people, you can’t judge people for the situations they’re going through. You’re there to listen and understand what they’re going through, and ultimately help them.”

Hearing how customers have saved $6,000 a year in insurance, or $2,000 a month after refinancing their homes is rewarding for staff to hear — knowing they’re making a real difference.

“Money is very emotional for people, so if you can truly understand what someone is going through and be able to help them, it makes you feel really good about what you’re doing,” Borowy says.

For Kat Rembacki, marketing specialist for One Detroit Credit Union, a fellow Detroit CDFI Coalition member, working in a credit union also provides a meaningful career and connection to the community.

“One Detroit Credit Union was founded in 1935 as the Detroit Newspaper Industrial Credit Union, and over the years, we have expanded our field of membership as well as the products and services we’re offering to meet those evolving needs of the community,” Rembacki says. “Our mission is to impact and change lives, by helping all people in the community, including those who have traditionally been overlooked by mainstream financial institutions by offering fair, credible and reasonably priced financial products and services.”

Many of these products are services created out of a need identified in the community, or an original idea from a member themselves, says Rembacki.

“Because of that, we’ve been able to develop some unique products and services that are just a little bit different from what you might find elsewhere,” she says. “They’re really designed to meet people where they are, and to empower them to meet their financial goals and live their best life.”

Rembacki considers credit unions to be more in-tune with their member needs than corporate financial institutions. Some of those unique popular services include Refi My Ride, an auto loan refinancing program that generally cuts interest rates in half. This program has saved members over $5 million collectively.

“Another one of the unique products is our First Time Auto Loan program which was developed because we know that living in a Motor City, a car is really essential. We’re really trying to make that as accessible and affordable as possible. It allows them to finance their first vehicle with no cosigner required, which is a barrier for a lot of folks.”

Other services include payday loan alternative, My Pay Today, without predatory lending of other payday advance loans, which has saved members $1 million a year.

“These products are designed to financially empower the people we serve, so sometimes it’s a completely new product and sometimes, it’s just small, innovative tweaks on existing products that help better.”

As more people become members of the credit union, providing ideas and feedback on current and potential services, Rembacki says the more impact they have on the community.

“The more members we have putting deposits into the credit union, the more we’re able to finance those payday loans and refinancing car loans to help people save money while they’re trying to get to work and to school, going about their daily lives.” she says. “Helping the entire community is really at the core of our mission. That means having products and services that meet the needs of everybody, at whatever stage of life and economic position. Financial empowerment should be accessible to everybody.”

Teaching the next generation financial literacy is also at the heart of One Detroit, which offers savings and checking accounts for kids and teens.

“Building those smart money habits at a young age really helps lay the groundwork for financial literacy throughout the rest of their lives,” Rembacki says. “It’s about learning those financial habits when you’re young so that they become second-nature when you’re older.”

Being a credit union member provides a sense of ownership when it comes to your money, versus being part of a bank.

“When you’re a member of a credit union, you’re an owner,” Rembacki says. “You have a say and a vote in how your financial institution operates. That’s something that banks and for-profit financial institutions do not offer. It also really speaks to the vision of credit unison to lift up their members and financially empower them.”