CUNA OpSS Council: Branching Strategy Advice Posted by AVCU on 3:29 PM

Branch building by credit unions will continue in the near future, but tempered by economic realities and lacking the aggressive posture of the past. That’s the message of “Branch Strategies,” a white paper released by the Credit Union National Association’s (CUNA) Operations, Sales & Service (OpSS) Council. The paper presents compelling evidence that the slowdown will affect both banks and credit unions. Branch expansion requires significant investment, but usually generates a better than average adjusted ROI, according to research cited in the paper. Branch locations also drive checking growth and primary financial institutional status.

Credit unions branches in grocery stores may arise again as community charters increase. Advantages . . .

· market research has already been done

· foot traffic is guaranteed

· the cost is much less than a traditional branch

· the hours are extended.

There are, of course, disadvantages . . .

· lack of a drive-up

· lack of control over the lease and building

· small space and high transactions

· sometimes low loan volumes

A new type of branch employee is evolving . . .as the branch evolves from a transactional to an advisory role employees are becoming cross trained in opening accounts, loan applications, CDs, sales and staff can no longer be just an order taker. Most importantly, the new branch employee has to be a relationship builder.

CUNA Council members are entitled to a complimentary copy of the white paper and more than 200 others. Non-members can purchase white papers for $50 each. The paper is available online in the white paper section of www.cunacouncils.org – select the “OpSS” tab.