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One Detroit Credit Union Connects with Several Banks for $1.3 million BEA Deposit Match

Success Story
Asset ClassDeposits, Commercial
Financing TypeBEA Deposit
Interest Areas
Equity Investment

One Detroit Credit Union has customers who tend to borrow far more than they save.  This is consistent with many CDFI credit unions serving predominately low-asset populations.  As a result, it is a challenge for credit unions to maintain access to low-income deposits for lending capital. One solution that facilitated by the CDFI Fund is to provide grant dollars through the Bank Enterprise Award (BEA) program where banks make deposits into credit unions that focus on low-income communities.

One Detroit focuses on consumer loans, led by $7 million in auto refinance loans, which saves consumers over $1.4 million in interest that would otherwise paid to predatory lenders. In addition to auto lending, the credit union offers innovative savings and loan products designed specifically to serve the underserved in Detroit. 

CapNexus helped One Detroit access additional capital from five banks that will enable the credit union to continue serving their core population. As CEO Hank Hubbard shared, We have used BEA deposits before, but it was an awkward process – often scrambling in the last days of the year to complete the transaction.  We were able to secure $1.3 million in deposits and using CapNexus made it far easier for us to connect with banks, and in a much more timely fashion.”

Note: In 2016, seven credit unions posted deals on CapNexus and secured over $6 million in deposits from 13 banking institutions.