Who owns LMCU?
Lake Michigan Credit Union (LMCU) is owned by its members.
As a not-for-profit financial institution, LMCU operates under a unique structure where the members themselves are the owners. This distinguishes it from traditional banks, which are typically owned by corporate stockholders.
Understanding Member Ownership
The ownership model of a credit union like LMCU is centered around its members. This cooperative structure means that every individual who opens an account and becomes a member effectively holds a share in the credit union.
Key aspects of this ownership model include:
- Member-Centric Focus: Since there are no external stockholders to satisfy, LMCU's primary objective is to serve the financial well-being of its members. Decisions, services, and rates are designed to benefit the membership.
- Not-for-Profit Operation: LMCU functions on a not-for-profit basis. This means that instead of distributing earnings to stockholders, any profits are typically reinvested into the credit union. These reinvestments often translate into benefits for members, such as:
- Lower loan rates
- Higher savings rates
- Reduced fees
- Improved services and technology
- No Corporate Stockholders: Unlike publicly traded banks, LMCU does not have corporate stockholders. Its capital comes from its members' deposits, and its governance is often through a volunteer board of directors elected by the members.
This direct ownership by members ensures that the credit union remains accountable to the very people it serves, fostering a strong community-oriented approach to financial services.
