CINCINNATI — A slowly improving economy will not open the branch expansion floodgates this year, but more CUs will begin planning today for new locations in 2010.
That's the outlook of Neil K. Kool, VP of business development for DEI here. Kool told Credit Union Journal that not only will more construction plans surface in the second two quarters of '09, but more decisions will be made to retrofit retail locations closed due to the economy.
"We are helping credit unions find those spaces that they can get into with a lower investment, and they can be on corners that credit unions may not have been on before because those prime spaces had been taken up," Kool said. "Starbucks is closing 600 stores and there are going to be places available that could be converted to a credit union quickly. There will also be the Chases, WaMu's, and other financial sites that will become available. We will do an analysis to determine if the credit union can get into a local market without building from scratch. Now that might not always be the best option, but we will analyze the opportunities presented in today's economy before we say build from the ground up."
Another reason CUs are looking at expansion-besides a slowly improving economy that Kool predicts will turn around in the second quarter of 2010-is that many credit unions have put the problems from the economy and corporate bailout behind them. "I call it the spilled milk syndrome. Our industry has looked at all the problems, analyzed them, and cleaned things up. Financial statements have already taken the hits, now it's time to move forward."
