Kevin Blair, Newground
CHESTERFIELD, Mo.—It’s time for CUs to create a five-year strategy around the evolution their entire retail distribution network, and corresponding changes to back-office support.
Newground asserts that step must be taken today for the CU to remain relevant in five years.
President/CEO Kevin Blair said that CUs must also constantly perform competitive analysis, go digital if the CU has not done so already, and develop a niche and position for the CU’s brand.
“As transactions have gone virtual causing a shift in the role of the branch, Newground has been thought leaders in driving physical and virtual changes in the way CUs serve their members,” said Blair. “Our focus used to be simply building bigger and better branches, we’re now helping financial institutions right-size their network with more efficient neighborhood and micro-branches.”
Virtual Channels Growing
The increase in use of virtual channels is causing a decrease in branch foot traffic and transaction counts, while simultaneously causing growth in back-office virtual support within the headquarters infrastructure, continued Blair.
“Along with these shifts, there’s a displacement of staff occurring; frontline staff is shifting from branches to back-office to support the explosion of the digital channel. And because of our depth of experience in financials, we’ve been leading the charge in helping credit unions make this shift,” he said.
Over the next five years, Blair said CUs must also prepare their infrastructure for the impact of the “digital world,” and adapt branching networks—strengthen headquarters infrastructure and evaluate locations in relationship to the market served.
Blair also cautioned that dropping new technology into an old delivery model to produce necessary change is a misunderstanding in the industry. “Whether it be digital signage, VTMs, or even making the shift to the universal banker, the application of technology must align with the credit union’s brand promise and organization culture.”