ProductsMBA Service Corporation Programs Return Millions to Member Banks by Applying the Power of the Group
The Michigan Bankers Association Service Corporation is a wholly owned subsidiary of the MBA providing necessary products and services to help banks remain profitable and assist them in serving their customers.
In 2008, 120 Michigan banks received $3,820,332 from Michigan Bankers Association Service Corporation (MBASC) programs. All but seven of those participating banks had more dollars returned to them than the entire cost of their 2008 MBA dues.
By leveraging the collective purchasing power of member institutions to increase quality, reduce costs and maximize fee income opportunities, MBASC returned more than $34 million to Michigan banks in the 13 years of its existence. Programs designed to capture the power of the group helped bankers receive these returns while gaining competitive industry benefits.
What makes MBASC unique from other banking associations is its program delivery. The MBASC does not simply receive an endorsement or marketing fee for promoting a product or service to banks. A full 95 percent of MBASC revenue comes from programs owned or controlled by the MBA or member banks. The services are not supplier or vendor controlled. In addition, the MBASC does not enter into a product relationship unless, after thorough and deliberate investigation, it is determined that the product or service will provide substantial value and cost savings directly to MBA participating banks.
Some of the MBASC programs taking advantage of the power of the group include:
- Dividends from title insurance agency ownership. Since 1996, nearly $8 million in dividends have been paid directly to banks. MBASC has managed at least four bank-owned title insurance agencies over the years providing title service in every county in Michigan, Indiana and Wisconsin. Each agency is owned exclusively by a group of banks with no ownership by either the MBA or a title underwriter. Recently the management program has been altered to allow individual banks to enter the title program.
- Surplus dividends to members of the Michigan Bankers Workers Compensation Fund. The fund has returned more than $21.8 million of unused claim dollars to participating banks since 1981 and currently insures more than 12,000 Michigan bank employees with more than 70 percent of MBA member banks participating. It is the only self-funded workers compensation group fund for banks in the country.
- Rebates through the MBA/Harland Clarke check program. This program provides large monthly rebates to member banks based upon their volume of check sales and leverages the buying power of not only MBA banks, but banks participating in the other 14 states that are part of our consortium.
- MBA/ABA co-sponsored insurance program. Since 1991, a captive reinsurance program underwritten by Progressive, has provided more than $3 million in profit distributions to MBA member banks who obtain their directors and officers liability, bond or Internet banking liability policies through Progressive.
- MBA/Infinex broker dealer program. Infinex is a third party marketing firm created and owned by community banks. A dually-employed regional director of Infinex and the MBA brings a depth of experience that is focused exclusively on MBA banks and solely on the state of Michigan.
In addition to these programs, more than 50 percent of MBA member banks take advantage of the MBASC’s comprehensive employee benefits offering. These programs include agent, administrative and billing services focused on partners Blue Cross, Delta Dental and Unum. Local agents cannot access our group programs through Delta Dental or Unum and the group rates are based upon the collective experience of bank employees throughout Michigan that are in the MBA group. Further, our salaried agent staff focuses solely on providing bank employee benefits at the most cost-effective rates. Since they are not compensated based upon commissions, their sole focus is providing value to MBA member banks and their employees.
In corporate insurance, MBASC in-house specialist has more than four decades of property and casualty experience with the past 18 years dedicated entirely to the unique needs of financial institutions. MBASC handles and advises nearly 25 percent of MBA member banks with a broad array of coverage. We also perform insurance audits for banks, providing a written report of recommended polices, coverages and limits needed to appropriately protect bank buildings, business personal property, automobiles and employees are also available.
Other MBASC programs capturing the value of MBA membership and the power of the group include the Annual Compensation and Benefits Survey. With more than 70 percent of Michigan banks submitting survey data, the survey remains the most comprehensive survey dedicated to banks in Michigan. MBASC’s endorsement of the Financial Institutions Compliance Cooperative (FICC) provided by Bodman, LLP, strengthens the membership in the cooperative long-term. The Federal Flood determination program provides flood determinations at an $11 group price including a map with each determination, no payments where the loan does not close and no charge for re-certifications.
The MBASC is constantly reviewing new products, programs and services that provide cost-effective solutions to Michigan banks utilizing the leverage of group buying power. MBASC partners or programs we create and manage will continue to deliver and return long-term value to our MBA participating banks.
Contact the MBA at 517-485-3600 with any questions about these programs.