Credit unions look for ways to survive, thrive

By Jeremy W. Steele
Lansing State Journal

Barrett Morris has a sense of loyalty toward the financial institution he shares with many of his coworkers.

In return, the 25-year-old Michigan Department of Civil Rights investigator thinks State Employees Credit Union gives him good deals on a range of services.

"I do have a bank account also," he said, "but I think a credit union is more likely on loans to give a lower interest rate."

Credit unions abound in mid-Michigan. But increased competition from banks, mortgage companies and others in the credit union sector is challenging area financial cooperatives.

That's leading to big changes among mid-Michigan's traditionally vibrant credit union sector. In some cases, it's a name change. In others, its a merger. In still others, it involves reaching out to nontraditional customers.

"Competition is going to be more severe," said Harold Sollenberger, a professor at Michigan State University's Eli Broad College of Business. "Just like we saw consolidation in banking, as more credit unions break out of this safety sphere that they're in, I think you're going to see more and more consolidation."

Not so exclusive

Once-exclusive credit unions are becoming more like mainstream banks, lifting membership restrictions, expanding services and buying smaller competitors.....for more of the story from Lansing State Journal