Credit Union Centers Shared Branch Network Expands in 2010
Indianapolis – March 7, 2011 – In spite of 2010’s difficult economic environment, shared branching vendor Credit Union Centers’ was able to expand its shared branch network by 18 branches: five in Indiana and 13 in its newest market, Illinois. With more than 200 locations in Indiana, Credit Union Centers continues to provide the largest branch network of any financial institution operating in the state – exceeding the largest bank at 184.
In Illinois, Credit Union Centers’ number of branch locations grew to 73 total, continuing its goal to become the largest branch network there, as well. Nationally, Credit Union Centers network now has more than 4,200 locations, making it the fourth largest branch network of any financial institution nationwide. The shared branch vendor also signed four new credit union clients in 2010 to leverage its growing network.
One of the biggest trends in 2010 was the steady growth in consumer usage of electronic delivery channels coupled with declining usage of paper checks as a payment method. According to Dan Davis, Credit Union Centers EVP/CFO, this trend contributed to a decline in branch transaction volumes over the last several years, which continued in 2010, as well — resulting in the decreased number of branch locations at financial institutions.
“As consumers continue to shift away from the expensive branch transactions for the more cost-effective electronic type transactions, we will be seeing more of this trend in the coming years,” Davis explains. “Digital transactions are cheaper and branches are obviously more expensive to build and maintain. A change in today’s member habits that requires less paper check processing along with a stagnate economy results in the consolidation or closing of underperforming branches.”
Shared branching, however, allows credit unions to redirect its member’s branch transaction needs to other area facilities when they make the decision to close an underperforming location. The credit union is able to continue to provide service in the area at a much lower cost, by only paying for the transactions being performed by its members instead of the fixed costs associated with having its own location.
“Financial institutions will continue to take a close look at expenses, particularly at underperforming branch locations,” Davis says. “As a result, we expect to see a continued trend toward closing underperforming locations, which is where cost-effective shared branching can fill the void. We look forward to assisting credit unions in Indiana and Illinois expand their reach to better serve their members – no matter where they reside.”
About Credit Union Centers
Credit Union Centers shared branching network offers access to more than 4,200 credit union shared branch locations nationwide – more than 250 in Indiana and Illinois combined. For more information about shared branching, visit www.cucenters.com.