University of Michigan Credit Union has spent the last year significantly expanding its membership, product offerings, and geographic reach. The downtown Ann Arbor-based credit union executed a merger with Family Community Credit Union in Flint last March, adding three more branches and 5,700 new members. U-M Credit Union had been expanding its presence at the University of Michigan-Flint last year when the opportunity to merge with Family Community Credit Union presented itself. It turned out to be just the right fit.
"It all just worked out perfectly," says Tiffany Ford, CEO of the University of Michigan Credit Union
U-M Credit Union has also been growing organically, signing up new members in Ann Arbor, Ypsilanti, Washtenaw Community College, and U-M Dearborn and Flint. This focus on campus development has allowed U-M Credit Union to grow its membership by 11 percent to 70,910 people and its assets from $571 million to $633 million.
"We have been able to build member awareness in the Ann Arbor area and increase the number of new accounts at Washtenaw Community College and U-M Flint," Ford says.
Which has allowed U-M Credit to expand its product offerings. The credit union has long focused on expanding its membership’s usage of the credit union's credit cards that feature low-interest-rate or rewards programs. Twenty seven percent of the credit union's members now use one of those two credit cards, increasing its balances $2.9 million over the last year to $35 million. U-M Credit Union has also increased its auto loan balances by $18.6 million over the last year to $121 million.
"We know we can increase that penetration significantly," Ford says.
That success has opened the door to U-M Credit Union expanding its mortgage loans. It is also preparing for a soft launch of a new commercial lending program next week. That program will offer lending products to members in commercial real-estate development, and business lines of credit.
U-M Credit Union now has 13 branches, including two virtual branches it recently opened at Washtenaw Community College and U-M Flint. The credit union is also in the process of replacing its credit union at Main Street and Eisenhower Road with a new branch at 2725 S State St on the south side of Ann Arbor.
That growth has led to several new hires for the U-M Credit Union. The institution has hired 17 people over the last year, including professionals in customer service, marketing, and human resources. It currently has a staff of 142 employees and three interns. The credit union is currently looking to hire another 7 people right now.
"We have been hiring in all areas of the credit union," Ford says.
Source: Tiffany Ford, CEO of the University of Michigan Credit Union
Writer: Jon Zemke