Two Overlooked Pay-Offs From Shared Branching
ONTARIO, Calif.-Two often overlooked aspects of shared branching are the cost savings and the ability to test-pilot new products, according to one person.
That is the message from Nathan Rogers, VP of marketing for shared branching network Financial Service Centers Cooperative.
"From our perspective, one of the best methods for enhancing the bottom line would be through maximizing investments that have already been made," he said. "Whenever credit unions can generate additional income or reduce future expenses by utilizing a technology the institution has already implemented, it will have a positive effect on the bottom line."
Shared branching is a "great example of an often underutilized product," Rogers asserted, adding that many credit unions operate with excess teller capacity in their branches. Therefore, if the CU has made investments in branch infrastructure, "Why not maximize that investment by generating income as a shared branching outlet owner?" he asked. "An outlet owner, sometimes called an acquirer, receives income for sharing their branch facilities with guest members."
If a credit union needs to add new services to stay competitive, including mobile banking, remote deposit, call centers or others, Rogers said implementation using an existing Issuer interface to shared branching can be much more economical.
Testing Member Acceptance
"At the very least, it can allow a credit union to test member acceptance of products and services before a full-scale implementation."
FSCC says it is the nation's largest credit union Shared Branching Network, providing more than 6,500 full service deposit-taking locations in all 50 states. It also has Vcom units in 2,200 7-Eleven stores. FSCC credit unions represent $144.8-billion in total assets and 12.2 million members.