As members increasingly use online and mobile channels for their banking needs, visits to traditional credit union branches have become fewer in number. Digital channels not only offer members 24-hour convenience, but also serve as a low cost channel for the credit union. Almost all credit unions these days offer basic services through their mobile banking apps. Visiting your local branch is not as convenient and it is a high-cost channel to maintain. So, how does the credit union branch down the street stay relevant in this changing climate, and also stay ahead? What will a branch location of the future look like?

While members may use online or mobile channels for matters of convenience such as managing accounts, checking account balances, scheduling bill payments or transferring funds between accounts, they still tend to walk into a branch for transactions that are a little more involved, such as a home mortgage application, savings plans, financial advice and investment decisions. Even if they have researched their options online, members might prefer to visit a branch to close the deal after face-to-face interaction with credit union staff in regard matters that are important to them. Therefore, even with the emergence of online channels, branches can no longer be regarded as pure play banking branches but rather a center for member experience, something credit unions see as top priority.

Against this backdrop, how then can a credit union capitalize on its foot traffic or increase its foot traffic to win more high-value business? Understanding and providing members with a personalized experience is a start. Their local credit union will know them by name, not by account number.  Technology such as beacons or geo tracking can help. For example, beacons, which are available on the more recent Android and Apple smartphones, enable a credit union's mobile app to deliver highly tailored digital promotions or coupons directly to the consumer's smartphone when the member is in the branch or a specific indoor location. The app has to be installed on a smartphone and the member has to opt-in for promotional alerts for this to work. In such cases, with geo-tracking, credit unions can invite targeted members to drop into the branch when they are nearby to learn more about interested products, and reward them with loyalty programs while banking. A snack bar meeting or fine dining offer can help to better member engagement, while mobility services and analytics can help identify cross-sell and upsell opportunities. Ultimately, this will strengthen the member's relationship with their credit union.