ATLANTA-Credit unions are doing a better job of not keeping their shared branch locations a "best-kept secret."
Both Craig Beach, SVP of marketing and business development for CO-OP Shared Branching, based here, and Doug Burke, president and CEO of CU Service Network, Lakewood, Colo., told Credit Union Journal shared branching has become a viable alternative to building new branches and an opportunity to emphasize the positive in the case of branch closures.
Most CO-OP Shared Branching member CUs "have really bought in to promoting shared branches as part of their branch network," Beach reported. "When another credit union, which it shares branches with, opens a new branch, these credit unions send out postcards and do other promotions to get the word out. The same thing happens when an existing branch joins the shared branching network."
Burke said credit unions market the CU Service Network program in a number of ways, starting with a locator utility on their websites, in addition to toll-free numbers and iPhone apps.
"Several times a year we do promotions where we provide posters or post cards to our credit unions," he said. "These communications can be generic, or they can be specific as to which locations are available in a particular area. We see this when credit unions are closing branches. About 30 to 60 days out, they will promote a shared branching location in the area as an alternative, plus two or three other choices to meet members' needs."
Beach said the concept of shared branching has achieved sufficient maturity to be recognized. Credit unions don't necessarily need to communicate the concept to members, he asserted, because members already see shared branches as locations where they can do business with their primary CU.
"When they see the CU Service Center Network logo, they say 'That's my credit union,'" he said.
During the recent economic downturn, Beach said he witnessed credit unions that took the step of closing lower-performing branches to save overhead because they were participants in shared branching. "We also see credit unions looking at shared branching when they are planning and planting new branches. They are looking at what other shared branching members are in that area so they can offset operational costs."
CU Service Network's Burke said the communications methods credit unions use to promote their shared branches depends on what CUs are doing with their branches in particular markets. If there is a particular marketing campaign-such as a credit union pushing shared branching in its newsletter-there typically follows a surge in shared branching transactions.
In the case of branch closures, "credit unions rely more heavily on shared branching as an alternative." Burke said. "Sometimes credit unions choose to close a branch, other times they are forced to in the case of a SEG closing or selling a facility. Shared branching can be an alternative to building a new branch" in addition to a means to "test" a marketplace for a future branch, he said.
