GLEN ALLEN, Va.-Walk into a credit union branch in 2109 and you won't see transactions taking place. Instead, skilled financial advisors will provide a great deal of money counseling.
Branches will be around in 100 years, but performing a much different service, forecasted Chuck Fagan, chief sales officer with PSCU Financial Services. "Credit unions won't be able to afford to do over-the-counter transactions and the branch will be more for financial advising - taking a member, really owning that relationship, and helping that individual work toward a sound financial future. I think credit unions will have to adapt to that."
What will open that door, contended Fagan, is banks' making consumers "feel even more like just a number" than they do today. "I think credit unions will take more of the banks' business this way," Fagan said. "When you get down to three to four banks today owning as much of the market as they do, the trend for banks to make consumers feel unimportant will become even stronger."
That will require credit unions to develop highly skilled front-line staff that know every aspect of members' financial history. "This will be a big opportunity, if credit unions position themselves correctly, to become a big part of their members' lives," said Fagan.
Transactions will be handled outside branches via multiple delivery channels based on consumer demand. "The delivery channels will have to be structured to provide information in the ways consumers want it and when they want it," Fagan said.
The number of CUs will shrink to 1,000, Fagan predicted, and small shops will still be around. "You will see the classic 80/20% split, with the larger credit unions numbering about 200."
With small credit unions still serving members, CUSOs will play larger roles in the future. "They will have to push some of their costs out, especially for processes that are expensive," Fagan advised. "That will allow them to invest in technology to serve members and drive efficiencies."
