Page 12 - Michigan Credit Union League: 2018 Contact Q1

(Rising From Recession cont.)

We’re entering a decade of recovery from the 2008 from 58 percent in 2009. Credit unions have stepped
financial collapse, and Credit Union National Associa- to the plate while banks have receded. This approach
tion (CUNA) economist Mike Schenk said there is no from banks, along with large-scale scandals such as the
end to the recovery in sight. The credit union industry 2016 revelation that Wells Fargo was illegally opening
has found itself stronger than ever. The same core unauthorized credit cards in customers’ names in an
practices and values that got credit unions through effort to meet sales targets, have people turning to
previous recessions are still very much intact, driving credit unions and finding a trusted financial partner.
the community to financial health and stability.
Financial Education and Counseling
Second quarter data from 2017 showed that credit union
memberships in Michigan, now at 5.2 million, continue In 2002, in the wake of a recession, credit unions
to climb above half of the state’s population. Addition- worked hard to educate their members about how to
ally, the growth of Michigan credit union loan portfolios manage their finances during tough times. The same
bested the national average, at 11 percent, which not is true for the most recent recession. Credit unions
only shows substantial growth since the recession, but worked tirelessly through it to teach members about
is the fastest since 1994. financial health.

Every quarter, more consumers are hearing about the We understand now, more than ever, that we don’t
credit union difference. When they need to find a home need to wait for economic turmoil to spread financial
or automobile, or are interested in starting a small education. The more work we do now to teach money
business, Michiganders are looking to credit unions management skills, while the economy is strong, the
for assistance. more prepared that members will be for any unforeseen
drops in the market. In 2017, through Financial Reality

“Many of our members have been affected by the hous- Fairs supported by the Michigan Credit Union Foundation

ing crisis and Community Choice Credit Union is proud (MCUF), more than 3,500 high school students prepared

for successful financial independence. Credit unions are

We understand now, more than also better equipped to guide adult members toward
better financial health through financial counseling;

ever, that we don’t need to wait more than 500 Michigan credit union professionals have
received training toward certification as a CUNA Certi-

for economic turmoil to spread fied Credit Union Financial Counselor (CCUFC) through
funding from MCUF since 2010.

financial education. “Credit unions exist to help people get more from their

money and financial education is a core component
that we are seen as a trusted financial partner at a of this mission,” said MCUF Executive Director Beth
time when big banks have turned their backs on peo- Troost. “We understand that it is never too soon or too
ple,” said Philip Cooper in early 2012, then the chief late to learn how to make wise financial decisions. The
operating officer of Community Choice Credit Union, Foundation’s support programs are in place to help
now the chief lending officer of Michigan Schools and credit unions increase their impact to ultimately improve
Government Credit Union. “When large corporate banks people’s financial futures.”
refuse to lend, that strains many of our members, from
businesses in the small- and mid-size market areas to Anticipating Change

people who are looking to save money when they need While this consistent growth for Michigan credit unions,
to buy a new vehicle. Our programs are all part of credit and the economy, is great, history tells us it won’t last
unions’ philosophy of giving big to our members.” forever. As mentioned in the Q3 2017 Contact article

According to a 2015 article in the Wall Street Journal, “DIFS Director Calls on Credit Unions to ‘Iron Out’ Issues,”
small business lending at 10 of the largest banks dropped Pat McPharlin asked credit unions to anticipate change.
by 38 percent between 2006 and 2014. Between Janu- Specifically, he wanted lenders to assess the risk of
ary and August 2015, banks only amounted for 43 per- their current offerings in order to prevent instability in
cent of business loans of $1 million or less, a decrease case of wild changes in the market.

12 FIRST QUARTER 2018 I CONTACT