The Changing Face of Membership
The landscape has changed for credit unions. Members are not always located in your own back yard. Many members do not have easy access to one of your branches. Additionally, many credit unions are faced with geographically expansive membership bases or individuals who maintain membership after moving. This can be especially true for credit unions with nationwide or even worldwide SEGs such as the military or a large company. As the membership landscape changes, credit unions must adapt their offerings so all their members still can access the products, and be met with the service, they have come to expect.
Traditional brick and mortar branches can be costly to build and manage, so it may not be financially viable to build an entire branch to serve a small number of members. There are physical remote delivery options available that credit unions should be considering when looking to remedy this problem.
Responding to the Change
According to the 2007 Callahan & Associates Technology Survey, approximately 60% of respondents indicated they would be implementing some form of physical technology-based delivery channels during 2007. These included full-service ATMs, kiosks and Remote Teller Systems. 53% of respondents are looking to add full-service ATMs in 2007, with kiosks and Remote Teller Systems coming in at 15% and 10% respectively. Although these number show a slight slowdown from the figures reported in 2006, these number still show strong interest in physical delivery channel solutions for credit unions. Since no one option works best in all situations. Credit unions need to consider their own business models, as well as the needs and make-up of their membership base in order to select the option that is best for the credit union and its members.
When looking to implement these options there are a few key questions that credit unions should be asking themselves:
- Where are your members located?
- Which solution fits best into that location distribution?
- What is your member familiarity and comfort level with using and adapting to new technology?
- How are you looking to measure success?
- Are you looking for the solution with the lowest cost?
- Which solutions are the quickest to implement?
- What ROI are you hoping to achieve and in what timeframe?
- Which solution will have the greatest impact on a particular productivity measure?
Credit unions that can determine what they hope to gain from these solutions can be lead to the solution that will benefit them the most in the ways they are looking to benefit.
Finding the Perfect Solution
As credit unions continue to look for ways to better serve their current membership and bring in organic growth, technology can play a major role. They key in implementing this knowledge is ensuring that technology is not simply implemented for technology's sake. Rather, that it is implemented with tangible benefits for members and the credit union. This means that credit unions need to ensure that they are asking the right questions about their members and their organization that will allow them to select the delivery channel that is going to be the best fit.
To hear credit unions that have already implemented these delivery channel options discuss what factors they evaluated when making their decision, what questions they had to ask, how the implemented their solution, and what they learned from the process, join us Wednesday January 23 rd for our webinar “ Matching Technology with Member Service Strategies: ATMs, Kiosks, and Remote Teller Systems .”