The Cost/Benefit Upside of Shared Branching
May 1, 2017
Shared branching is an affordable alternative to maintaining a branch network – and one that also gives your credit union the ability to connect to newer channels, particularly digital and self-service. It is a valuable tool to help improve your financial performance and market penetration, providing another means to meet members’ expectations for convenient service.
“With shared branching, credit unions have access to the world of mobile banking and P2P payment technology through, in the case of CO-OP Shared Branch, the same network that enables account transactions across branches,” says Craig Beach, the company’s chief operating officer. “All are integrated to make your work easier and more powerful.”
Effortless access to branches is likely a high priority for your members – a study by the Board of Governors of the Federal Reserve System reports that 87 percent of consumers who have an account at a financial institution had visited a branch and spoken with a teller in the past 12 months. CO-OP Shared Branch encompasses 5,400 branches, making it the nation’s third largest network of financial institution branches. The ubiquitous nature of shared branching makes nationwide access to branch service extremely convenient for members and offers an attractive cost/benefit opportunity for credit unions.
In addition, the return on investment for shared branching is achieved through increased use. Studies show that non-interest income per member is 18 percent higher for credit unions that provide full service shared branch operations (i.e., as both issuer/acquirer) compared to those that do not, and auto loan penetration is 17.1 percent higher.
For more information, please contact Craig Reed, Director of Strategic Partnerships, Northwest Credit Union Association, at email@example.com.