New Survey Reports How Pandemic May Change Credit Union Branches

Seventy percent of 53 credit union executives who participated in a CUSO-sponsored survey said they had to temporarily close branches because of COVID-19 positive cases among staff or credit union members.

While less than 10% of executives surveyed said they had to permanently close branches because of the pandemic, another 25% said they either plan to permanently close branches over the next three years or possibly cancel branch construction plans.

The survey, conducted by the Lakewood, Colo.-based CUSOs InNetwork and Aux, interviewed credit union executives in October and November, who manage credit union assets ranging from $14 million to $7.6 billion from 14 states. InNetwork provides shared branching support while its sister CUSO, Aux, offers back-office support for credit unions.

InNetwork and Aux said the purpose of its in-depth survey was to provide industry research about how the pandemic impacted member interaction and channel usage, coronavirus branch experiences, the future of branches and contactless member ID.

Less than 10% of credit union executives said they had to permanently close branches because of the coronavirus, while less than 13% said they were planning to permanently shut down branches over the next one to three years because of traffic changes. Another 12% of respondents said they are possibly cancelling branch construction plans.

Among credit union executives who plan to build new or remodel existing branches, 57% said ITMs, kiosks and other self-service options will be offered to their members, while 43% said these self-service options will not be available for members.

About half of executives surveyed reported branch transaction volume was lower this year over 2019, but they have been growing. Another 25% said branch transaction volume was significantly lower this year compared to 2019, while 20% said branch transaction volume was about the same in 2020 and 2019.

Seventy percent of executives said online transaction volume was higher in 2020 than what it was last year, while 25% said online transaction volume was significantly higher in 2020 over 2019. Mobile banking transaction volume nearly mirrored the online banking transaction volume, according to the survey.

About 64% of executives said call center transaction volume was either higher or substantially higher this year over 2019, and about one-third of executives said call center transaction volume in 2020 was about the same as it was last year.

Asked how members responded to mask requirements in the branch, 83% of executives said members complied and none refused, though 13% of credit unions said they did not have a mask requirement. Although employee mask requirements were overwhelmingly accepted, less than 10% of credit unions said that employees are not required to wear masks, according to the survey.

In regard to how members responded to removing their masks for identification purposes, 75% of executives said members complied, though there were no members who were upset or refused to take off their mask for ID, according to the survey.

More than 80% of executives surveyed said contactless processes for member identity verification will become a member expectation, and more than 75% agreed contactless identification would help their staff make better decisions.