DFCU Financial was an Early Pioneer of Shared Branching

CU Times - January 3, 2006 - 12:15 PM

ONTARIO, Calif. — DFCU Financial Federal Credit Union, the $1.8 billion CU that has filed an application to switch to a mutual bank is one of the credit unions which founded shared branching in the U.S. and has been a leading shared branching credit union through the Service Centers Corporation shared branch network.

SCC, now a wholly-owned subsidiary of CO-OP Network, began in Michigan in 1975 when five or six CUs, DFCU Financial (then Dearborn Ford FCU) among them, banded together to begin sharing their branch facilities. In the years since the shared branch concept has grown steadily across the credit union industry to where it includes three shared branching networks and about 1,700 participating CUs.

Under CO-OP Network rules, should it become a bank, DFCU Financial will still be able to participate in both the shared branching and fee-free ATM network access but it will not be allowed to own any shares of the cooperative and its CEO will not be able to serve on the board.