DETROIT — One Detroit Credit Union is expanding into two underserved communities by opening branches in former bank locations, a move the institution says is aimed at restoring access to financial services in neighborhoods left behind by large financial institutions.
The credit union plans to open a branch in River Rouge in August and another at the former JPMorgan Chase location at Eight Mile Road and Dequindre Street, which has sat vacant for eight years. The River Rouge office, located above City Hall, will become the city’s only credit union, while the Eight Mile branch is expected to open in the first quarter of 2027 following renovations, according to Model D.
The expansion comes as many communities across metro Detroit have become “banking deserts” following years of branch closures. Model D cited data from the National Community Reinvestment Coalition showing Detroit ranked 10th among the nation’s 50 largest metro areas for branch closures between 2017 and 2021, losing nearly 12% of its bank branches. During the pandemic, the city’s bank closure rate increased 127%.
Low-Income Communities Most Affected
The report noted that branch closures disproportionately affect low- and moderate-income neighborhoods and communities of color, often limiting access to affordable financial services and increasing reliance on check-cashing businesses, payday lenders and other alternative financial providers.
One Detroit Credit Union President and CEO Portia Powell told Model D the institution’s mission as a community development financial institution is centered on expanding financial access rather than maximizing profits.
“We have served the city of Detroit for over 90 years, and have been committed to making sure there was equity in financial access and availability amongst all Detroiters,” Powell said.
Powell said the credit union’s member-owned structure allows it to take a longer-term view of serving communities that larger financial institutions may consider less profitable.
The credit union already operates branches in Highland Park and Inkster, where it is the only financial institution. Powell said the Highland Park office has become one of the organization’s busiest locations, underscoring continued demand for in-person banking services despite the industry’s shift toward digital channels.
Heavily Travelled Corridor
The planned Eight Mile branch will restore financial services to a heavily traveled corridor connecting Detroit with surrounding suburbs. Powell said the absence of a local financial institution has forced many residents, particularly those relying on public transportation, to travel significant distances or turn to alternative financial services.
Powell said One Detroit’s expansion reflects its belief that maintaining a physical presence in underserved neighborhoods strengthens both residents and the broader community.
“When you see financial institutions closing, we’re still committed to opening them and being present and actively involved in our communities,” Powell told Model D. “Everything is not measured from a profitability standpoint, but it’s measured in people.”
