SAN DIMAS, Calif.-Given the economy and the need for credit unions to lower their average membership age, planning sessions should address shared branching opportunities to reach out to Generations X and Y.
That's the advice of Sarah Canepa Bang, CEO of shared branching provider Financial Service Centers Cooperative (FSCC), who reminded that studies show that young members want convenience. "Especially today, we know credit unions have to think carefully about the costs to build new branches," Bang said. "We have a saying at FSCC: You can build one branch for $2 million or you can build 6,000 branches one transaction at a time."
Bang pointed to CUNA research that shows 66% of all credit union members say they would use a shared branch if they knew where one was, and 98% of young adults ages 18 to 24 would do the same. "That's as close to a mandate for shared branching as I am aware of," she said. "Today is the perfect opportunity for credit unions to put their toes in the water with shared branching. And if they already are doing that, they should let their younger members know about it."
Moreover, with hurricane season here, and other misfortunes just a headline away, Bang says shared branches also offer disaster recovery advantages. "The NCUA is asking where is your backup site? Credit unions that are into shared branching can say they have thousands."
For info: www.fscc.com
