It is the kind of phone call Michigan First Credit Union President and CEO Michael Poulos loves to get.
His daughter called from New York City, bragging about the new, amazing automatic teller machine at her local bank. The ATM deposited her check and returned a scanned image on the receipt.
Poulos laughed, he recalls, and reminded his baby girl that his credit union had been doing the same thing – for more than five years.
“We just blow away whatever image people have about credit unions,” Poulos said. “Our goal is to be leading edge in whatever we do, especially when it comes to technology.”
That is an understatement. Michigan First is among the earliest of early adopters in the technology arena. And that is part of the reason the credit union in Lathrup Village, Mich., is growing so rapidly despite the region’s larger economic meltdown.
Over the past six months, Michigan First has added more than 1,000 new members on a monthly basis, Poulos said, boosting its membership to more than 75,000 members and businesses.
Its assets have grown 25 percent from 2005 to now top $500 million. Revenue also is rising year over year with Michigan First reporting $42 million in 2008.
Michigan First is a full-service financial institution that offers the same basic product offering of other credit unions: savings accounts, checking accounts, consumer and vehicle loans as well as business services, commercial lending and a vehicle purchasing program.
What has always made Michigan First stand out among its peers locally and nationally is its willingness to try new technologies – something its customers appreciate as well.
“Michigan First has been committed to technology and innovation for more than 80 years, including being one of the first credit unions to use computers,” installing the nifty devices in the early 1960s, Poulos said.
The credit union does regular member surveys to find out what the average member wants – and does not want – from Michigan First. That tool has proven hugely successful in launching new products and services.
“We try to look at things through the eyes of the consumer and try to think about what they would want,” Poulos said.
There is the next generation ATMs, which lets members cash checks to the penny (instead of having to round them up to the nearest dollar). The credit union also is investigating a program that will let ATM users select what kind of bills they want to receive when they take cash out of their accounts.
Or take the biometric access to safe-deposit boxes. Users no longer have to use old-fashioned keys, which needs a banking representative to also open the box at the same time. Instead, the biometric system uses a combination of a pin number and handprint to open the door with only one key necessary.
How about those nifty high-speed coin counters at each of its branches? The counters can process approximately 3,000 coins a minute compared to the ATM counters that process 700 coins a minute. This service is free for credit union members.
“Every penny counts, especially in these tough economic times,” Poulos said. “Our members have saved time and money by using these convenient services.”
And the credit union recently relaunched its online banking service to rave reviews from customers. The service acts as a financial management tool, Poulos said, giving members the ability to create customized monthly budgets, monitor and trend transactions and view historical credit scores.
Have a question about one of your transactions? Then a Michigan First member can conduct a live chat with you to discuss it. The online service also lets members scan their checks from home or office and directly deposit them into their accounts.
Customers Ricardo Thomas, who tested the program before its system-wide launch, called it “incredibly easy to use.”
“At first, I thought using online banking might be a little confusing, but after using it for just a few minutes, I was excited to see all the tools I could use to help me manage my finances,” Thomas said. “I immediately signed up to receive electronic statements.”
To date, more than 21,500 members have signed up for the next generation online banking, and members have used the new system nearly 250,000 times since it launched in mid-April 2009.
These programs and others like them not only benefit members, but they also make it easier on the credit union and its employees, Poulos said. The branches are more efficient, they have excellent record keeping and everyone stays on task because the technology is first rate.
“It’s a perfect win-win,” Poulos said. “That is the reason we are always seeking new solutions to improve service to our members.”
Michigan First’s story starts in 1926. Nine teachers from a Sociology class at Detroit Teachers College subscribed $95 and officially formed the organization known as Detroit Teachers Credit Union (DTCU). There were no office hours; whenever members showed up, business was conducted.
In 1952, with assets of $15 million, the Credit Union took over as the largest Credit Union in the world, a position retained until the sixties when replaced by the Navy Federal Credit Union. In April of 2001, the credit union changed its name to Michigan First, to reflect the diversity of its membership. The headquarters moved from Detroit to Lathrup Village in 2005 to handle the new growth the credit union was experiencing.
Today, membership is open to people who live, work or worship in one of 44 Metro Detroit communities as well as local businesses. Business loans are booming in recent months as well, driven by people’s need for low-fee loans and new interest in credit unions across the board, Poulos said.
Auto loans also are booming – Michigan First started 2009 with about $50 million in auto loans. That is up to $80 million through June, Poulos said.
“Most of our new members come from referrals from current members,” Poulos said. “Members are happy with the quality of our services and the technology we offer.”
