michigan schools and government credit union

michigan schools and government credit union

The Role and Impact of Michigan Schools and Government Credit Union

1. Introduction to Michigan Schools and Government Credit Union

The purpose of this article is to discuss some of the factors contributing to the cooperative’s development and to examine the role and impact of Michigan Schools and Government Credit Union within the cooperative movement and the state’s financial sector. The discussion may help shed some light on the prospects for financial cooperatives and the direction Michigan Schools and Government Credit Union will move as it continues to adapt to a changing environment.

The Michigan Schools and Government Credit Union, which was organized exclusively for the employees of the Michigan educational community and public service employees, has grown to become one of the largest in the United States. Since its inception, it has occupied a unique niche among the country’s financial cooperatives, offering deposit and financing services to an underserved segment of the cooperative sector. Recent years have been a time of rapid growth and substantial change for this foundation cooperative. Likely more changes will be necessary in the future because of the pressures of economic conditions and competition in the financial marketplace.

2. History and Evolution of Michigan Schools and Government Credit Union

Today Michigan Schools & Government Credit Union has 14 branches, nearly 400 employees, and provides financial services to nearly 99,000 members. With assets of $2 billion, the full-service Credit Union offers a wide range of personal and business-related financial products.

And as that one small room turned into additional rooms in the building, Michigan Commerce moved its main office to the second floor of the Standard Federal Bank (now Bank of America) Jefferson Avenue Branch across from the Renaissance Center in Detroit. By 1974, the Credit Union moved its main office to a new building on the southwest corner of Van Dyke and 25 Mile Roads in Shelby Township and by 2003 built a new headquarters on Wixom Road in Macomb Township. With locations in Detroit, Clinton Township, and Fraser, in addition to 30,000 participating credit union service centers nationwide, they are able to serve their 99,000 members wherever they are.

Over the last 30 years, the credit union has prioritized serving a diverse field of membership. In the 1990s, the credit union’s charter was expanded to serve school employees in Macomb County. In 2003, they became a community chartered credit union.

Beginnings often shape the future of an organization. Over 70 years ago, a group of forward-thinking school employees saw a need. They realized that by pooling their funds, they could help each other save and get loans at reasonable rates. This small group of people recognized the “people helping people” philosophy now embraced universally by the credit union movement. Known since 1963 as Michigan Schools & Government Credit Union, they opened for business in a single room at McGregor Memorial Hall on the campus of Wayne State University in Detroit under the name of Michigan Commerce Credit Union on August 11, 1954.

3. Products and Services Offered by Michigan Schools and Government Credit Union

Their fiscal integrity guides them through and responsive to ever-changing economic times and technology. Building on a strong business culture, employees at MSGCU are dedicated to applying flexibility, creativity, and professionalism to provide our members with financial product choices that meet fiduciary needs. MSGCU volunteers communicate with members on an ongoing basis. Building member relationships, prompt response, communication, support, and readiness to adapt as necessary contribute to MSGCU’s success. 83% of MSGCU employees are on the front line dealing directly with the members of MSGCU every day. It is the responsibility of all employees to encourage, support, and build on MSGCU’s goal of extraordinary service.

Their mission is to provide quality financial service to our members at the lowest possible cost; to provide these services with the highest level of member service; and to support the educational and informational needs of our members by providing members and potential members with information on issues concerning our membership. Part of MSGCU’s mission is to help ensure that young people who are economically challenged have the necessary support to achieve. Their support includes teaching money management and credit education, support of young persons through college sponsorship, and providing funds for supplies and equipment when necessary and practical.

Each of these products and services has been designed to help members save money, loan money, and manage their money. Each member is entitled to one vote at the annual meeting regardless of how many shares the member may have in either the form of savings, checking, IRA, or certificate accounts. The business conducted at this meeting includes the election of volunteers and speakers of the board, the approval of any necessary changes to the bylaws, and receiving reports concerning the activities and condition of Michigan Schools and Government Credit Union.

Michigan Schools and Government Credit Union offers an array of products and services for their members. These products and services include savings accounts, checking accounts, IRA accounts, money market accounts, certificates and individual retirement accounts (certificates and IRAs are similar to Certificates of Deposit and IRA CDs offered by other financial institutions), consumer loans, business loans, VISA Platinum and Classic credit cards, Superior Checking, e-Smart Mortgage, KLUB CD, InvestLink, and a variety of subaccounts. Additionally, MSGCU has options for both online banking and to receive eStatements.

4. Community Involvement and Social Responsibility Initiatives

For over 30 years, the credit union and the Detroit Free Press have sponsored a volunteer services program that provides needed services to senior citizens or at-risk youth living in low-income neighborhoods. The school children involved in this annual event have been taught about volunteerism in addition to learning about banking and the importance of giving back to the community. Through the use of “talking,” that particular event was specifically recognized by a U.S. President as a unique public-private partnership for education.

One of the fundamental principles of Michigan Schools and Government Credit Union is “people helping people.” That philosophy has been a driving force behind our commitment to community involvement and social responsibility. From providing school children with early banking education to sponsoring events, to supporting the development of non-polluting hybrid automobiles, the credit union has made a positive impact in the communities we serve.

5. Future Outlook and Challenges for Michigan Schools and Government Credit Union

Despite expansion of their membership, MSU Credit Union staff believes the organization will retain its unique appeal and focused purpose. In the next 10 years, the MSU Federal Credit Union hopes to join like-minded organizations around the country to create a kind of “United Way” for the credit union industry. They also believe they will take the financial education of young consumers to new heights, becoming a really big deal. And by doing so, they will continue to serve as a high street beacon of Lansing community responsible capitalism.

MSU Federal Credit Union has achieved great things in its first 60 years. With their grand success come challenges. Over the last two years, the credit union has experienced major membership shifts due to more open membership requirements courtesy of the Credit Union Membership Access Act. The act now permits the credit union to allow relatives of members, not just MSU faculty and select MSU employees, to join.