CHESTERFIELD, Mo.—What does 2019 hold for credit unions in 2019 when it comes to branching?
According to one design and delivery firm, the new year will also mean new branch designs and service delivery approaches, more new offices started from the ground up, and likely even more extensive remodeling of existing offices.
CUs are simply entering more new markets, said NewGround’s Jeff Winter, senior vice president of business development, and that requires not just new locations but new approaches to how those services are delivered to members, as well.
“Credit unions are investing in system-wide branch transformations to optimize their branch footprint,” said Winter, who emphasized that the changes must be backed by sound strategic planning.
“Credit unions are leading with strategy first,” said Winter. “They are seeking to understand shifts in membership as well as growing their member footprint.”
Winter believes the movement of existing members to newer communities offers an opportunity to grow the member base.
“This can produce a complete change in a credit union’s branching strategy, such as closing some offices, finding new locations, right-sizing space requirements, or even expanding a footprint to create a flagship location,” said Winter.
Many Are Remodeling
But remodeling credit unions’ existing locations is likely high on many CU wish lists for 2019, emphasized Winter.
“With more than 60% of credit union branches over 12 years old, it is a natural progression to remodel existing facilities, either in a full remodel or with key branding elements,” he said.
As many credit unions expand their footprint, they are moving away from the traditional branch model, with teller lines and old-fashioned offices.
“We have seen an explosion of credit unions migrating to universal banker models,” said Winter. “Less than 1% of NewGround’s clients asked for a traditional teller model configuration last year.”
Jeff Winter
Investment in Employee Training
What this shift has also forced CUs to do is spend more time and money on employee education, noted Winter.
“This change is tied to increases in training and upgrading staff to a different model that focuses on less transactions and more interactions,” stated Winter. “We have also seen a continued trend to link subject matter experts via video to a staged headquarters environments to handle the calls and inquiries.”
Winter said that video solutions are best suited to providing members with fast, real-time access to experts.
“These solutions work great when members need a quicker response from the credit union and want to speak ‘face-to-face’ with someone,” explained Winter.
The Retail Model
Winter noted that credit unions, in general, are moving to a more “retail-like” model where time is the “new commodity. And this is forcing brands to reimagine themselves. Your branch employees should tell your brand story,” he said.
Finally, Winter emphasized the importance of credit unions addressing omnichannel service delivery.
“Nearly 61%, or two-thirds, of consumers start their journey in a digital channel—opening a new account—and 58% of those end up in a branch,” he said. “Ensuring that your branch is an extension of your website is extremely important. The experience of digital is critical, as we know, more members are choosing to interact the credit union over mobile devices or laptops.”