Credit unions delivering big service through shared branching

On their own, credit unions could never match the physical presence that large, commercial banks have nationwide. But they have collaborated to offer member access that rivals the biggest U.S. financial institutions.

Today, 42 Wisconsin credit unions are part of the CU Service Centers’ shared branching network, which allows their members to perform transactions free of charge at any of more than 4,500 shared branch locations nationwide. This represents the fourth largest branch network in the United States and serves members of 1,703 credit unions nationwide.

"It’s a good example of the way that credit unions share and cooperate with each other," said Pat Wesenberg, president and chief executive officer of Central City Credit Union.

Central City’s branch locations in Plover and Stevens Point became part of the network this year. The network provides added convenience to the credit union’s 23,000 members, while also serving members of other credit unions in the area and across the country.

"Cooperating to offer convenience works for every credit union that’s involved," said David Stark, president of Bull’s Eye Credit Union. "You wouldn’t get four banks in the area working together, sharing branches. But credit unions work together. We’re a family, and we always will be."

Carol Adler, president of Marshfield Medical Center Credit Union, has urged participation by credit unions saying, "You should get involved with this, being it’s a win for the credit union and a win for the members."

Her credit union, which has 5,400 members, joined the network in March 2011. She says she’s thrilled to see so many credit unions across the state participate. Although shared branching began in pockets of the country during the mid-1980s, for a long time it had been available in Wisconsin mostly in larger cities like Milwaukee and Madison. But through slow, steady expansion it has reached other areas.

Members of credit unions in the network can access a variety of services at any branch with the CU Service Centers’ "swirl" logo. They can make deposits and withdrawals, transfer funds, make loan payments and print statements showing recent account history.

To access their accounts at a shared branching location, a member needs the name of their credit union, their account number and a valid picture ID. Members can find the nearest branch location by searching the network database online at www.cuservicecenter.com, or m.cuservicecenter.com on their mobile device. They can also call 1-800-919-CUSC (2872).

"It’s marrying convenience with the credit union philosophy of not charging fees that the banks traditionally do," said Rex Fair, president of Sentry Credit Union.

Previously, Sentry Credit Union’s 6,600 members could only access services within the headquarters of Sentry Insurance. But now, using shared branching, Sentry’s members will be able to conduct business at multiple locations, with extended hours, weekend hours and drive-up service.

"For us, it’s not having to go out and add buildings to provide those services," said Fair. "So, really, it’s a cost-saving alternative to building two or three branches."

The shared branching network provides added convenience for members who retire, graduate, change jobs, move, travel often, have children away at college and for snowbirds who live outside the area for part of the year. Sentry Credit Union serves many Sentry Insurance employees who live in other states, and they now likely will have a participating branch nearby.

"Over the past two or three years, we concentrated on enhancing our online banking services – Internet banking, e-bill pay, electronic statements – but members define convenience as being able to go to a facility," Fair said. "Someone out-of-state wouldn’t think we’re very convenient."

Marshfield Medical Center Credit Union happens to be associated with a facility that attracts patients from outside the area. Those who belong to credit unions within the network have access to their accounts where they are receiving care.

Adler said the cost of offering shared branching has been worth it for the increased member convenience and exposure.

"Shared branching is one of the best ways to retain members and add more services per member," said Rick Hagopian, president of Wisconsin Credit Union Shared Service Centers, Inc. (WCUSSC). "Plus, shared branching users are among a credit union's most profitable members."

For some transactions, such as applying for a loan, members still must go to their primary institution or complete an application online. In addition, network credit unions pledge not to sell products or services to members of other participating organizations.

"We’re not concerned about losing members to another credit union, we’re more concerned about losing a member when they move out of the area. But now we can maintain that relationship," said Stark.

"Being able to offer convenient access to physical locations nationwide means a lot to a small credit union in central Wisconsin," he said.

For more information contact Rick Hagopian at (414) 325-9880, Ext. 3.

Using CO-OP Shared Branching - marketed to consumers as Credit Union Service Centers - credit unions are offering branch convenience (red bar) that rivals that of the nation's largest banks. "We have 4,500 branches and 7 employees," said Sam Sauer, Gundersen Lutheran Credit Union, La Crosse.