With nearly $700 million in assets, U.S. New Mexico Federal Credit Union is the oldest credit union in the state of New Mexico, serving members since 1935. Headquartered in Albuquerque, U.S. New Mexico was about to open its newest branch nearly 200 miles away in Farmington. The credit union did not have a branch presence in that part of the state, but did have 1,242 members with car loans only, who lived nearby.download pdf
"Credit unions have an uphill battle in that endeavor. The average credit union in the U.S. is only a fraction of the size of the average bank… about $194 million in assets compared to about $2 billion in assets."
Study after study points to the difficulties Americans have in managing their money. We need help getting from point A to point B financially. The financial institution that turns its branches into centers of information, where advice and consultation are proffered to account holders, will be recognized as an entity that truly wants to help consumers. So, while less and less transactions occur at the branch, more and more advice and consultation can take place instead.
Fewer branches translate to fewer face-to-face interactions with account holders, leading to further migration from the physical branch to digital channels. While online, mobile and the contact center are important to overall customer experience, fewer branches mean the frontline staff has an even larger impact — for better or worse.