CINCINNATI—Expect more credit unions in the second half of the year to move forward with expansion plans now that NCUA has eliminated the 5% rule on fixed assets, predicts DEI.
The company also sees rebranding and branch renovation picking up, as well, due to the pace of mergers not slowing and potentially rising, DEI said.
“This increases our opportunity to design renovations, brand integrations and branch transformations for our clients,” said Jeff Boehmer, regional vice president. “Overall, we’ve found that optimism about the state of banking and the future has increased exponentially—a far cry from the general financial industry state of mind just a few years ago.”
Smaller Footprint
DEI said the footprint of branches, as might be expected, is shrinking and technology is helping support that.
“Whereas several years ago financial institutions were hesitant to incorporate new technology and change their delivery method, now they are open to dialogue banking and (interactive teller machines),” said Boehmer. “The industry is positioning itself to better serve Millennials and still maintain the same personal touch their existing members have come to expect. Millennials respect good rates, convenient service, varied product offerings, and, above all, overall experience of service.”
Jeff Boehmer
Transition Period
But privacy and relationship-building remain important, continued Boehmer.
“While technology is accepted fully by some generations, others need education and a transition period,” he said. “For that reason, tellers are being cross-trained to handle all transaction types, explain new technology and service options, and develop trusted financial relationships. Privacy is provided in small offices equipped with the very technology members encounter in the lobby, so staff can explain to members how the tech works while they conduct business.”
Boehmer added that CUs understand that the facility and the services they provide to attract and maintain members are just as important as the experience the member has with the member service representative.
“As we move forward, not only through the rest of 2016 but for years to come, branches will be designed to encourage face-to-face interaction and support the service experience by incorporating the mobile technology the younger generation has grown to rely on,” said Boehmer. “That technology frees up employees for more personal assistance and provides extended hours of service and on-demand convenience the newer generations demand. Branches are evolving, and we will see that pace pick up this year and begin to change the way all generations view banking.”