ATLANTA — If a CU determines it can't extend branch hours, it should consider turning to shared branching to boost convenience, according to one person.
CO-OP Shared Branching President/COO Craig Beach noted that a recent study conducted in conjunction with Raddon showed that while just 7% of CU members use shared branching where it is available, those members make up a quarter of their CUs' profitability. The study used the Michigan market as an example of member behavior in an area where shared branching is extensive and member awareness is high.
Most Profitable Members
"What we found is when we looked at the days of the week and the hours they were doing transactions, about a quarter of all the transactions for the CUs were occurring after 5 p.m.," said Beach. "We're even getting credit unions that have hours on Sundays because they have an outlet in a store facility, so there is the ability to expand those extended hours locations...to wherever and whenever they want."
Beach also noted that when all locations of all client credit unions are added together, CO-OP's network represents the fourth largest network in the country, behind only the top three banks.
And that network continues to grow; despite the sharp economic slowdown, CO-OP is adding shared branching clients at a faster rate than last year, as 43 credit unions were added to the network in the first four months of 2009.
The Next Generation
Nearly 80% of this year's new shared branching participants are utilizing CO-OP's Next Generation Network technology, which facilitates shared branching transactions and delivers a number of additional products through that channel. NGN allows CUs to offer Fast Branch kiosks, as well as remote deposit and mobile banking with one connection. More than 1,000 credit unions in total are utilizing the new network, which now goes so far as to provide deposit capabilities at CO-OP ATM locations in convenience stores.
Financial Service Centers Cooperative (FSCC), San Dimas, Calif., also offers shared branching, in addition to kiosk access through 7-Eleven stores.
