Before there were smartphones and banking apps, lobbies, tellers and drive-through lanes represented the face of credit unions. According to a recent study, customers still want this brick-and-mortar version to be available for their financial needs.
This is where shared branching comes into play. Shared branching is a nationwide network of 5,400 branches of 1,800 credit unions. Members can enter any of the participating branches and conduct their business as if they were in their own hometown credit union.
When John and Kathleen Barry moved from Davis, Calif., to Entiat, Wash., which has a population of 1,100, they were worried about their banking needs. For 25 years, they had been members of USE Credit Union, which has assets of $712 million.
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"I knew we could use mobile banking, but I wanted to be able to talk to someone in person," Kathleen Barry said. "I had no idea what we were going to do."
But the small town, which has a convenience store, a fire department and a tiny library, also has a Numerica branch.
Numerica, with $1.4 billion in assets, has more 100,000 members in Spokane, Northern Idaho, the Tri-Cities and the Wenatchee Valley and it participates in shared branching, which means the Barrys can do business at its Entiat branch.
"It's the cutest thing and I now know the two tellers and it's fun to go to when I need to talk to a real live person," Kathleen Barry said. "I have the best of both worlds with shared branching."
Banking online from anywhere around the globe is convenience personified, but making deposits, withdrawals, transfers and account inquiries at a real branch is still essential for the majority of Americans.
According to the November 2015 study by U.S. Bank, nearly 80% of consumers worry that customer service will be bad if banks "go completely digital." That could explain why 86% plan to bank in physical branches over the next five years. Further emphasizing the desire for personal interaction, 8 out of 10 Americans say they prefer working with a banker in person instead of a virtual one to resolve issues.
Some of the findings from the U.S. Bank study and from data from CO-OP Financial Services, the network that provides shared branching, include:
- 63% of respondents indicate they will never handle all of their financial transactions digitally.
- 80% prefer working with an actual banker or teller rather than a virtual one.
- 86% plan to do business in actual branches over the next five years.
The shared branching concept is unique to the credit union industry. The network includes branches in all 50 states, Washington, Puerto Rico and Guam, serving more than 55 million credit union members.
Shari Vega of San Diego is a member of the $7.2 billion San Diego County Credit Union and uses its La Mesa branch. The credit union has 38 branches in San Diego and Orange Counties, but Vega travels for her job and recently her sales territory has expanded to Northern California.
"I'm very concerned that my credit union doesn't participate in shared branching," she said. "I can use my apps and ATMs, but if I have an issue I have to call my credit union and wait on hold and try to discuss the problem with someone I can't see. I really wish they used shared branching."
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