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Shared Branch Fulfills Need for Face-to-Face Interaction

On February 26, the Federal Deposit Insurance Corp. reported that physical branch banking continues to have a strong presence in the industry despite the advent of technologies allowing customers to access services remotely.

This study was conducted by Eric Breitenstein and John McGee, both analysts in the agency's research division.

"New technologies have certainly created convenient new ways for bank customers to conduct business, yet there is little evidence that these new channels have done much to replace traditional brick-and-mortar offices where banking relationships are built," reads the study. "Convenient, online services are here to stay, but as long as personal service and relationships remain important, bankers and their customers will likely continue to do business face-to-face."

The agency also recently cited research showing bank teller transactions falling 45% between 1992 and 2013. However, this is not the case for the Missouri Credit Union Shared Branch Network (CUSB). In 2013, the Missouri CUSB processed 785,445 teller transactions, but in 2014 it processed 842,460 transactions, an increase of 57,015 transactions or 7.25%. In 2014, the Missouri CUSB added 13 locations, bringing the total to 134, plus one new participating credit union, now totaling 47.

“2015 will be a very good year for us also, with at least 20 new locations and 5 new participating credit unions being added,” says Mark Hohenstein, VP of the Credit Union Shared Branch Network.

In a fall 2013 study by the Raddon Group, they reported that 89% of the respondents stated convenient branch locations are extremely or somewhat important when selecting a primary financial institution (PFI). Shared branching can help credit unions meet that need for multiple convenient branch locations, as well as that face-to-face interaction desired by consumers.

For more information about joining the Missouri Credit Union Shared Branch Network, please contact your MCUA field representative.