Credit Unions Launch New Branch Strategies that Boost Membership

David Weiss, Callahan & Associates
December 29, 2004

Fresh ideas in branch design are fueling at least part of the continued growth in total credit union branch volume. Volume at branches was up 4.25% overall over the 12 months through second quarter of 2004.

Experiences at two credit unions in Virginia and Texas show what credit unions can do to keep branches the thriving financial services delivery channel they still are.

Call Federal Credit Union in Virginia and Community Credit Union in Texas used different approaches, but both reduced overhead costs and helped ensure their success through a proactive member relationship approach.

Partnering to Develop a Credit Union Mall

When Call Federal Credit Union had outgrown its Richmond, Virginia, branch a couple years ago, President Roger Ball knew it was time to expand. Instead of securing a larger building for just Call Federal, Ball reached out to two other area credit unions, Connex and Richmond Federal Employees, inviting his smaller neighbors to share space in a new, larger branch.

The result was CU Mall, a storefront-style building housing the branch operations of three credit unions, two of which had lacked the resources to maintain a branch independently. CU Mall exemplified the cooperative nature of the credit unions. The mall approach enabled Connex and Richmond Federal Employees to expand their operations through a non-competitive, mutually beneficial arrangement while saving Call Federal on overhead expenses.

Network Expansion through In-Store Locations

Community Credit Union in Texas significantly augmented its branch network, adding 18 in-store locations over the past three years. Each location features an advanced remote teller system (RTS) that enables a single teller to efficiently serve two members simultaneously. The RTS systems worked so well that Community integrated them into its brick-and-mortar branches.

Community employs a "high-tech, high-touch" approach throughout its branch network. Credit union staff actively engage members to educate them regarding proper use of the RTS machines or to direct them to more appropriate channels. Community also actively markets itself to store shoppers through customer interactions, live promotions and public address announcements.

This article first appeared on Callahan and Associates www.creditunions.com website. Contact David Weiss, a researcher at Callahan & Associates, Inc., at 1-800-446-7453. Reprinted with permission.