SAN DIMAS, Calif. - Rising gas prices may be contributing to a significant increase in shared branch transactions, reports Financial Service Centers Cooperative, which is recommending increasing shared branch promotion to the CUs it serves.
“We are seeing a 15% increase in transactions this year over the same period in 2007,” said FSCC president and CEO Sarah Canepa Bang. “High gas prices are prompting more members to use shared branching.”
Canepa Bang shared a story about one CU board member whose eyes opened to shared branching as fuel prices skyrocketed. “His credit union had shared branching but he never used it,” Canepa Bang said. “With gas prices, he decided instead of driving 15 miles to the proprietary branch he’d go two miles to the shared branch. He loves the fact his credit union is helping him save gas money.”
While high fuel prices may be driving up shared branch usage, Canepa Bang isn’t sure why FSCC here is seeing larger loan payments coming through shared branch kiosks at 7-Eleven stores this year.
“We are seeing loan payments, on average, of $100 higher through the convenient store kiosks than from CU kiosks,” Canepa Bang reported. “I have yet to determine why that is happening.”
FSCC has kiosks in 2,000 7-Eleven locations across the country. The shared branching provider, which serves 300 of the nation’s largest credit unions, is recommending that CUs also promote shared branching to reach a younger demographic.
“Credit unions want to bring in younger members,” Canepa Bang said, “and 7-Elevens are positioned to help them do that, with a demographic of 26-30-year-olds.”
For more info: www.fscc.com.
