NORCROSS, Ga. — Credit unions looking to in-store branching to expand their physical footprints need to be aware of the unique nature of such branches.
This alternative to traditional expansion has been seen as a way to enter a market for a lower cost and reach a large number of potential members by simply being there, but choosing the right partner is critical for both the financial institution and the retailer.
"Since most retailers in the country are open 24/7, they are looking for a financial partner that is willing to offer extended hours not only to their existing member base, but to 15,000 to 50,000 potential members that walk through their lobby," Carmen Cox, IBT enterprises VP-national accounts, told Credit Union Journal. "IBT has found that convenience drives the consumer today, even more so than loyalty. Being where the consumer is going to be is the key to any successful financial institution."
But just "being there" will not boost membership or increase activity enough to offset the costs of keeping those longer hours. Cox suggested teaming up with a consulting service, such as IBT's, to help in-store credit union employees engage with existing and potential members that come through the store.
"The goal of in-store banking is to capture the possible new business walking through the store each and every day. This cannot be accomplished by simply building a branch and waiting for people to come to the credit union," she pointed out. "Positive interactions drives the sale of products and services, and in most cases more than covers the cost of the new facility."
With the increased hours, one would assume that in-store branches would have more full-time employees than other locations and increase the cost of operating that facility. But this is not necessarily the case so long as there is a solid mix of full and part-time employees and a strong program in place to ensure continued solid member service.
"By implementing a comprehensive training program that teaches employees to effectively deliver all member services, credit unions can help ensure there is no drop in member satisfaction. There should never be a situation where a member service representative will say 'let me ask my manager,'" Cox told the Journal.
