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Digital Branch - Assigning Members to a Digital Branch Number

  • 1.  Digital Branch - Assigning Members to a Digital Branch Number

    Posted 16 days ago
    We are researching the concept of assigning members to a Digital Branch number. Thoughts:
    1) This would be based on transaction activity - those who do not use one of our branches or use it infrequently would be assigned to this branch.
    2) Deliver special pricing for those who are deemed digital only.
    3) Distribute the members into a specific branch in order to provide a more accurate picture of the physical branch locations in terms of overhead, P&L, etc.

    Has anyone ventured down this road already?​

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    Stanton Davis
    Chief Experience & Innovation Officer
    Avadian Credit Union
    Birmingham AL
    205.985.2828
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  • 2.  RE: Digital Branch - Assigning Members to a Digital Branch Number

    Posted 15 days ago
    We have an 'E-Branch' for that very purpose. This branch is set up just like a physical branch, has its own member assignments and activities. We have used special promotions with some success. This is part of our New Direction (since my arrival here) and relatively new, but the intention is as you describe. ~Tim

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    Tim McLeod
    President/CEO
    Riverfront FCU
    Wyomissing PA
    484.599.1653
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  • 3.  RE: Digital Branch - Assigning Members to a Digital Branch Number

    Posted 12 days ago
    We set up a virtual branch several years ago. if a member does less than three branch transaction over 12 months, they are assigned to the virtual branch. About 75% of our members are in that branch. This has lead us to reduce the number and size of branches over time.
    Rich Helber

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    Richard Helber
    President/CEO
    Tropical Financial CU
    Miramar FL
    305.261.8328
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  • 4.  RE: Digital Branch - Assigning Members to a Digital Branch Number

    Posted 12 days ago
    Richard: A few questions for you if you don't mind.

    1) Members are assigned to the eBranch. So then the cost associated per member as it relates to overhead is pulled from the individual branch P&L and assigned to the eBranch?
    2) Do you have a dedicated staff that serves those members? For example if there are call campaigns/member outreach - who would be assigned to work those leads?
    3) In your case of how it is segmented - if the member is assigned to the eBranch and then opens a checking account in physical branch are they then moved back to a branch assignment and the checking account would be credited to the branch?
    4) What were the main reasons you decided to make this change to adding an eBranch?
    5) What have been the benefits?
    6) Were there hurdles in making this change?

    Thanks for your time. It is greatly appreciated.

    ------------------------------
    Stanton Davis
    Chief Experience & Innovation Officer
    Avadian Credit Union
    Birmingham AL
    205.985.2828
    ------------------------------



  • 5.  RE: Digital Branch - Assigning Members to a Digital Branch Number

    Posted 12 days ago
    Hi Tim,

    Richard: A few questions for you if you don't mind.

    1) Members are assigned to the eBranch. So then the cost associated per member as it relates to overhead is pulled from the individual branch P&L and assigned to the eBranch?
    2) Do you have a dedicated staff that serves those members? For example if there are call campaigns/member outreach - who would be assigned to work those leads?
    3) In your case of how it is segmented - if the member is assigned to the eBranch and then opens a checking account in physical branch are they then moved back to a branch assignment and the checking account would be credited to the branch?
    4) What were the main reasons you decided to make this change in adding an eBranch?
    5) What have been the benefits?
    6) Were there hurdles in making this change?

    Thanks for your time. It is greatly appreciated.

    ------------------------------
    Stanton Davis
    Chief Experience & Innovation Officer
    Avadian Credit Union
    Birmingham AL
    205.985.2828
    ------------------------------



  • 6.  RE: Digital Branch - Assigning Members to a Digital Branch Number

    Posted 12 days ago
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    1)     Members are assigned to the eBranch. So then the cost associated per member as it relates to overhead is pulled from the individual branch P&L and assigned to the eBranch? 

     

    A: Generally, yes. Transaction related cost are allocated to the branch/channel based on transaction volume, i.e. card processing, interchange, online banking. But indirect overhead like insurance, league dues travel and conference, legal etc. are allocated based prorata size of their balance sheet.  However, we assign those cost AFTER calculating direct profitability. That way we can sasses an individual branch/virtual channel on its own performance.

     

    2) Do you have a dedicated staff that serves those members? For example if there are call campaigns/member outreach - who would be assigned to work those leads?

     

    A: we have a separate digital team, like a branch.

     


    3) In your case of how it is segmented - if the member is assigned to the eBranch and then opens a checking account in physical branch are they then moved back to a branch assignment and the checking account would be credited to the branch?

     

    A: Reassignment occurs if 3 or more transactions are done at a branch. We did away with individual incentives for opening checking accounts. We have a gainsharing program for all employees. That reduced all the infighting.

     


    4) What were the main reasons you decided to make this change in adding an eBranch?

     

    A; too big of a channel not to manage separately. Different interactions.

     


    5) What have been the benefits?
    6) Were there hurdles in making this change?

     

     

    Rich Helber

    President/CEO

    Tropical Financial Credit Union

    3050 Corporate Way

    Miramar, FL 33025

    954-517-7676 o

    954-802-1058 c

     


     
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  • 7.  RE: Digital Branch - Assigning Members to a Digital Branch Number

    Posted 11 days ago
    Hi Stanton,

    Our eBranch is similar to that of what Rich described except we are not as far down the road.

    1. we do assign the member to that branch, but yet haven't decided as to the number of transactions at other branches warranting a move to another branch.  We are currently in the process of developing the processes to move into full branch accounting.  Up to this point, since our conversion to Corelation, we have used more of a basic branch accounting process that merely assigns members, loans, and deposits.  With the help of Profitstar, we are now setting up and moving to a full P/L by branch.

    2. we do have dedicated staff and mainly run our normal promos with a focused approach through this channel.  Our intent is to continue building that branch like any other, but as mentioned coming through the pandemic we see plenty of opportunities to lean on the digital services even more.  However, I will point out that our physical branches have performed above average as well coming through the pandemic.

    3. refer back to answer at #1, but as it stands, we leave the member in the branch they originated.  Understandably that will change as we continue to modify the eBranch profile so that we can accurately capture the true operation of that and other branches accordingly.

    4. we feel there are a lot of opportunities and have experienced great success in developing the eBranch.  Too, as we've said for some time, e-services are the way to go, especially when trying to attract younger consumers.  With these things in mind, we felt it was the best strategy to grow and sustain the operation, all things considered.  Also, as we've seen with the pandemic this year, drive-thru operations, contactless and electronic services were at times our only pathway to effectively provide services to our members.

    5. and 6. simply the things listed have been the advantages and I feel more so as we continue to develop and grow that 'branch'.  Likewise, I feel this process like any other has had its own set of issues and even concerns, but on this side of its development, I feel that we would make the same decision.

    Tim







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    Tim McLeod
    President/CEO
    Riverfront FCU
    Wyomissing PA
    484.599.1653
    ------------------------------