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?
Tropical Financial Credit Union
3050 Corporate Way
Miramar, FL 33025