Fifth Third Bank officials say they are ready to tap into the banking needs of East Lansing business and MSU staff and students.
A new branch of Fifth Third Bank is moving into its new digs at 309 E. Grand River Ave., adding another banking option and two more ATMs for East Lansing residents, Jim Paul, Lansing's regional manager said.
The Cincinnati-based bank merged with Old Kent Bank in 2001 and absorbed more than 250 Old Kent branches across the state.
"We service a lot of students and staff members currently through our networks in Lansing and we are looking to extend that service closer to campus for those folks," Paul said.
The addition of Fifth Third Bank will produce competition for customers with the MSU Federal Credit Union, 523 E. Grand River Ave.
Historically, credit unions have been organized by members and don't operate for profit. Banks are usually organized by stockholders and are for-profit.
Despite the fundamental differences, the two institutions offer similar amenities to their customers such as online banking and remote ATM locations. Fifth Third Bank's 8.24-percent annual percentage rate after four months on credit cards is 3.66 percent lower than the one offered by the MSU credit union.
Joyce Banish, MSUFCU's vice president of marketing, said the credit union always welcomes new competition, but doesn't see a big fight for customers.
"Our services target students so well, I can't imagine many students would move over to Fifth Third," she said. "We are here for the long term with the students. We would like to serve them after graduation.
"It would be hard for me to imagine that they offer students a better value or better services."
But Paul said Fifth Third has the advantage of cheaper rates and a larger network of branches and ATMs to reach students anywhere than its competitors.
"We are looking at attracting students that not only bank and live in the Lansing area, but students living in the Detroit market, northern Michigan and, quite frankly, students from out of state."
Last fall, Fifth Third Bank established a customer base with students and parents as they signed up for savings accounts during the bank's Welcome Week promotion, he said.
Vinnie Bartalone, owner of Sidestreets Deli, 605 E. Grand River Ave., has been using Fifth Third Bank and Old Kent for more than four years. He said he likes the convenience, but doesn't envision switching to a closer branch.
"I look for convenience," he said. "The branch on Saginaw I go to has a drive-through and it makes it easier because I can do it from my car."
Even though Bartalone's business goes through Fifth Third Bank, he said it is easier to get a loan through MSUFCU as a student.
"(Fifth Third) is pretty tight on their loans," he said. "For me to get a business loan, I need to show a three-year profit-loss statement and personal credit check. I just went to the credit union to refinance my car and put $1,000 back into the deli."
