The digital age has arrived at the $18 billion Pentagon Federal Credit Union in Alexandria, Va. The institution on Wednesday reported that more than three-quarters of all member transactions involved online or mobile devices during 2014.
Specifically, 80% of member interactions—including logons, balance checks and transactions with PenFed —involved a web or mobile device. Comparatively, 15% took place via phone, and 5% involved branch visits, according to PenFed President/CEO James Schenck.
"The world has changed, and our members can count on PenFed to continue to adapt and innovate with the intent to provide best-in-class member experiences at the forefront of all we do," Schenck said.
PenFed still maintains branches in select locations, but as the credit union expands its operations, members should not expect to see an upswing in new branch openings, Schenck said,
"I won't say that branches are obsolete, but our members are now accessing information via mobile devices at a rate that has surpassed branch visits and telephone calls combined," Schenck explained. "We will continue to operate branches where it makes sense from a strategic standpoint. However, opening more of them is not a part of PenFed's growth strategy."
The future of financial services will be squarely focused on mobile devices that give members instant credit union access, Schenck continued. Increased attention to streamlining services to meet mobile user demand will be important to PenFed's strategic plans.
"Mobile apps are game changers in the truest sense, and organizations that are unwilling or unable to adapt to become mobile friendly have already been left behind," PenFed User Experience Director Brandon Harris said.
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