Branches Maintain Sales Focus as More Members Use Electronic Channels

A recent Callahan & Associates survey confirms that credit unions are gradually moving members towards using lower-cost electronic delivery channels for more of their transactions. This shift has the potential to positively impact overall credit union productivity and profitability. Branches are still the primary source of loan originations, however, generating half of all loans.

 
 

A recent Callahan & Associates survey confirms that credit unions are gradually moving members towards using lower-cost electronic delivery channels for more of their transactions. This shift has the potential to positively impact overall credit union productivity and profitability. Branches are still the primary source of loan originations, however, generating half of all loans.

In January, Callahan & Associates initiated a research study to discover credit union benchmarks and best practices in the area of branch management. Where applicable, results were compared to similar research conducted by Callahans in 2001. One of the areas reviewed in both studies was the average percentage of transactions conducted through each delivery channel.

Credit unions responding to the 2003 survey reported that branches now account for nearly one-third of all transactions, a significant drop from 2001, when they generated 43% of transactions. As expected, electronic channel usage has increased, especially for direct deposit, Internet home banking and ARU transactions. Several credit union respondents indicated that debit card/POS transactions generate up to 50 percent of their total transaction volume.

 

 

 

March 3, 2003


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Comments

 
 
 
  • In the chart - where are Visa purchases included? Are loan transactions included in the total transactions?
    Anonymous
     
     
     
  • In the chart - where are Visa purchases included? Are loan transactions included in the Total?
    Anonymous