GREENWOOD VILLAGE, Colo.-For Bellco CU, business is booming at the branch level.
The $2.1-billion credit union-which recently surpassed the 200,000-member mark-has opened two new branches this year, with plans to open two more before the year ends, for a total of 19 branches. BCU is also experiencing a hefty increase in foot traffic at branches, with a 15% increase in in-branch transactions year-over-year.
"We're finding we're actually underbranched, and we have pockets in the Denver metro area where we're not easily accessible," explained VP-Branch Sales John Rivera. "That's our strategy; finding those pockets where we can give members easy access to a branch."
Rivera said "easy access" is translated as meaning within a 10-minute radius of a Bellco branch.
Despite offering robust online and mobile channels, Bellco still sees 70% of its new members join in-branch. The remainder join online or from other channels, with a hefty portion coming via indirect lending. The CU serves more than 202,000 members, and is currently growing at about 2,000 members per month; Bellco expects to add about 12,500 members in 2012
With its new branch in Cherry Creek, "we had 6,400 existing households within a three-mile radius, with absolutely zero overlap with another branch," said Rivera. "That's a perfect opportunity for us to add easy access to our members for those more complicated deals that they don't want to do online or use the mobile banking we have."
Rivera explained that Bellco is using a two-pronged approach with branching, pushing members to online services while expanding the brick-and-mortar branch network.
"We find our members want that branch," said Rivera. "They want to be able to come into a branch to do their more complex deals and sit face-to-face with a trusted financial advisor. We also find that we have a better opportunity when they come into the branch to really take the time to meet with that member and align their current and future needs with the products and services we offer today. We kind of miss some of that online if we don't take the time to ask those questions and get to know our members."
Utilizing the branch system in that manner provides opportunities for Bellco reps to focus on "deepening the relationship with the member"-a phrase used not only by Rivera, but by several other CU executives that recently spoke to Credit Union Journal, who said that strategy was part of the key to building non-interest income and boosting the bottom line in 2012.
"If you take the time to do that-and it does take time-and we educate that member on everything we have to offer, we'll gain a member for life, and more than likely we won't lose some product to a competitor," said Rivera.
While Bellco is focusing on branches, it is not doing so at the detriment of online and mobile channels. The credit union is preparing to roll out an enhanced online offering, and it upgraded its mobile platform last July. More than 21,000 Bellco members use its mobile service, which added mobile RDC in April.
Leaner Facilities
With its new branches Bellco is taking a leaner approach, scaling down and using smaller, storefront spaces, rather than the traditional 2,000- or 3,000-square-foot space. The CU is also looking at the possibility of utilizing video tellers in the future.
In the long run, predicted Rivera, branch transactions and foot traffic will level off, but there will be exponential growth in online transactions and mobile banking.
"We're proactively putting those (electronic) pieces into place and enhancing them as we go along ... but then combining that with the branch network and building a real sales and service organization so that when a member comes in, they know they'll get their more complex needs taken care of," said Rivera. "We're here to be trusted advisors."
