Large banks are closing branches in small markets to focus on more profitable markets where they can leverage efficiencies of scale, marketing dollars and favorable demographics. For example, Bank of America shuttered 600 branches in “underperforming markets” through 2017 and now plans to build 500 new branches in more desirable—and often larger—markets.
With other financial institutions backing off, credit unions may have an opportunity to serve small markets. For example, $886 million Park Community Credit Union, Louisville, Ky., offers micro commercial loans between $5,000 and $10,000, and $2.4 billion Genisys Credit Union, Pontiac, Mich., offers business loans up to $40,000, providing an effective way to engage new business owners as they start to grow.
Even in small markets, providing a convenient branch location remains a top priority for consumers as well as small-business owners. So how can a credit union place a branch most efficiently? Automated cash handling technology and small staffs are a good start. Here are six more ways to provide a worthy physical presence at a reasonable cost:
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