Knock down, drag out?
As noted in yesterday's post [link] "The Main Event" is scheduled for June 3, 2025, which will be "Independence Day", as LGFCU transitions to CIVIC FCU.
Some lively comments were voiced about rates, rivalries and reactions from CIVIC members. All that aside, what may be more important to consider is the underlying "pachyderm in the room": "The Branch Question".
CIVIC leadership is betting the ranch on an "all digital" credit union. They have tried to claim that all CIVIC members will have a branch within 30 miles (sounds like a "financial desert" expansion!); but that "branch network" is more faux than fact.
The latest exciting new member service announcement by CIVIC is:
"Quickly add cash to your CIVIC account when you
stop by one of nearly 200 participating Walmart stores in NC."
" It's easy!"
- "Visit the Money Center, or a checkout lane
- Hand the associate your Civic debit card and your cash to load
- They'll swipe your card, and your money will load automatically!
- Load up to $1,000 per transaction, and up to $1,500 per day. Keep your receipt as proof of your transaction; the retail service fee will be reimbursed by Civic."
😎 Before you let that smirk get too far on your face, it might be wise to be patient and see how the 400,000 LGFCU members respond. How would you?
No one doubts that expanded "mobile, internet, digital" access is a basic financial requirement going forward (like ATMs in the past). Both SECU and LGFCU have had mobile member access for a decade (clunky perhaps!) with multi-million per month transactions. That's not going away!
✅ The bigger question is : "What's next for the 275 SECU branches and branch staff?"
What would you do? **
** Don't waste your time, it's not in the "Strategic Plan"!
Easy. Branch count needs to be well below 200 to lower costs and reinvest in digital and better rates.
ReplyDeleteThis was a comment from yesterday...
ReplyDelete"The thing about heavy brick and mortar branch channels is that they don't respond to member demand, they create it. Meaning, as long you provide branches everywhere, members will clog them with transactions they can do far more efficiently through other channels."
...the hold time to speak with the next agent when a member calls the 888 phone number is 28 minutes. Time stamped 12:03p on 5/5/25. Not sure what the commenter's definition is efficient is. But i could drive to and from my local branch in less than 28 minutes.
of course it's efficient. Do you know how many people we'd have to hire to reduce the hold time to 1-2 minutes? That would hurt our Opex ratio. You're completely missing the point, however. Close 100 branches, revinvest 50% of the staff into 888 number. Problem solved. Can't drive to the branch and back in 2 minutes, can you?
DeleteNot far off. I can think of a few of the more recently opened branches that answered a question no one asked and still struggle to draw foot traffic, despite being built as one of the new behemoth floor plans.
DeleteSo many of these slower branches, even on a Friday afternoon, the staff struggles to find things to do—you walk in and they’re listening to music on their phones and scrolling on the internet.
Delete@3:19 - that what happens when you build to support a successful 85 year business model, then have a rogue (subsitiute criminal) board pull the rug out and intentionally destroy 85 years in a few months.
DeleteThere are lots of ways to incorporate successful change and what these criminals did was not one on them.
"Close 100 branches, revinvest 50% of the staff into 888 number. Problem solved."
DeleteWhere do the other 50% of the staff go?
There are definitely busy branches out there, but there are also very slow branches that see very few members. Using employees in these branches could lower the call wait time and still allow branches to see staffed.
Delete8:18. on to their higher calling
Delete8:18. on to the unemployment line ... there I fixed it for you ...
Delete11:08 am Interesting. How did you arrive at the "well below 200" figure? What metrics would you use? At least one in each county? By # of members? Population? Deposit/loan balances?
ReplyDelete8th grader math... look at yesterday's post.. get halfway to the other CU average on deposits per branch and / or members per branch and you'll get your answer. One per country is a poor strategy.
DeleteI hate that we pay for this snotty voice of the CU ...
Deleteat 1233...we already know the answer but remind us how many million, much less billion, dollar businesses you've built and run?
DeleteIf members hate brick buildings so much, why are so many people leaving local to join state?
If "one per county is a poor strategy", why is the board and credit union league pushing this bill under the guise of helping poor people in "financial deserts"?
Delete