Causing a major problem for LGFCU members:
WASHINGTON– Is the branch dead, as many believe? Quite the opposite, according to one expert—but the branch will need to be different as might the people who work there.
During CUNA’s GAC [3/1/2023], Bill Handel, general manager and chief economist with Raddon, told a breakout session it’s critical to get into the “how’s and why’s” of branching as the branch transformation process is well under way.
“Is the branch dead? That’s something that a lot of people are saying. People say the branch has short legs, it isn’t viable for the future,” said Handel. “That’s something our research indicates is just the opposite. The branch will play a very pivotal role in your future. But it will be different.
Net Growth in CUsCredit unions, he said, have seen a net growth in branches between 2012 and 2022. More striking, he said, is that CUs grew branch counts by 34% during this period. “I really think the branch becomes important in a high-tech/high touch environment,” Handel said. In response to a question, just a few hands in the room were raised to indicate they have net fewer branches now than 10 years ago.
The Raddon research around branch usage by consumers discovered one “fascinating” finding, Handel said.
“Millennials are most likely to have walked into a branch. Why? The role of the branch is different from the past. Millennials are between 25-45 and they are moving into what we call the age of significance. What they are looking for from their financial services provider is different from what they needed in college. They are buying houses in droves. What this is really showing is there is a significant demand for branches.”
“We have found many organizations are struggling with this process of branch transformation. We pull people together and everyone has an opinion. “The first thing to do is to get the facts.”
I've already seen on social media that LGFCU members aren't happy about losing access to branches. What is in it for them, then?
ReplyDeleteBranch employee here-We have had a slew of LGFCU members already inquiring about how they can join SECU because they don’t want to be without branch access.
DeleteIt’s obvious that their separation is because of what changed in august 2021…
ReplyDeleteI distinctly remember the first WebEx where Jim Hayes said he would take 6 months before making any major changes- he wanted to see how things were before rocking the boat…the next 6 months were anything but business as usual- in his mind we were so far behind industry standard he had to act fast! Little did he know we WERE well above industry standard and that WAS part of our competitive advantage! Jim, as you said in our last call- It’s okay to make mistakes. IT’S OK! Just learn from them and DO BETTER! Maybe you should’ve taken that time to listen in the beginning so we could have shared our secret sauce recipe. Hmmm -what’s not ok is taking advantage of the trust and loyalty we have established with our members!
ReplyDeleteI distinctly remember Jim Selfie saying that he didn't like hearing "This is how we always done things".
Delete“Even tho the things y’all have always done may have worked, but my ways are better”- says the unproven CEO that’s already been sued as a CFO and stunk it up at Andrew’s as well.
DeleteI am wondering when the board and executive row are going to address member and staff complaints? Crickets
ReplyDeleteLGFCU members are already moving their accounts or trying to join SECU. Heard from so many they want to be able to visit a local branch and don't want to be forced into virtual only service. How does running off your members give them an "enhanced" experience? Changes have to be made at the top of SECU to save what has been built.
ReplyDeleteCan we as a society stop rewriting the definition of Millennials. 25-45 is not it. It’s 1981-1996 that 27-42. Sorry.
ReplyDelete