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.