MOLINE, Ill.–One small CU here has effectively used shared branching to make it more competitive in a marketplace where size certainly counts.
The $20-million KONE Employees CU joined Credit Union Centers’ shared branching network in 2010 and has since doubled member transactions, boosted assets by 25%, and become the PFI for many more of its members.
“Shared branching, as far as we are concerned, will in the long run help us keep members who may have closed their account because of inconvenience from being so far away from our office,” said CEO Kathy Hoeper.
The credit union has one office to support 2,600 members, many of whom do not reside near the credit union. KONE serves a single SEG, KONE Corporation, a global elevator manufacturing company. “So this little $20-million credit union supports a global membership. Only 15% of our members live and work here in the Quad City area,” said Hoeper.
The CEO said most members view KECU as a virtual credit union, but shared branching “gives us a little more of an edge with additional brick and mortar locations for increased convenience for those members who require a branch. We always look for any solution to deliver our services to our members and adding shared branching was a given for us.”
Strong Stats
KONE Corp. has more than 60 offices, facilities and plants nationwide, and the CU has shared branching offices near all but three of those locations. That reach has led to:
* Growing assets from $14.6 million to $20 million in a little more than two years.
* Doubling transactions to more than 4,000 annually.
* Members using shared branch locations in 40 states and Washington, D.C.
* Members using 572 of the more than 4,500 network locations in the last two years.
“These are some pretty healthy usage statistics for a credit union with just less than 3,000 members,” noted Hoeper.
One statistic the credit union is paying close attention to is the number of members choosing KONE ECU as their PFI. Since shared branching, the number has grown significantly, Hoeper said. Today 803 out of the 2,600 total members have a checking account with the credit union.
“We are a small credit union, and we needed something,” said Hoeper. “I don’t think we would have ever faced insurmountable problems had we not gone to shared branching, but the future is much more viable now.”
