RANCHO CUCAMONGA, Calif. (4/21/10)--Not only are shared branch users some of the credit union industry’s most profitable members, but the availability of physical branch locations is in surprisingly high demand among younger members, according to a new study. The study was conducted by Raddon Financial Group on behalf of CO-OP Shared Branching. The results were released Monday at the CO-OP Financial Services’ THINK 2010 Conference. Among the findings:
* About 38.6% of households that use shared branching are profitable, which is 10% more than the 28.8% of households that do not use shared branching and are profitable; * The average annual household profit for shared branching users was $90.25, compared with $7.07 of households that do not use shared branching. After applying the direct costs associated with shared branching transactions, the average profit was $47.53; * Roughly 6.8% of member households actively use shared branching. Use among members ranged from 1% to 18% by credit union. The households that use shared branching use it regularly, with 47.9% conducting 25 or more transactions per year; * Younger members are more likely than older segments to use shared branching; * Deposits are the most common transaction type after member verify, accounting for 26.2% of all transactions with an average of $1,226. Withdrawals and balance inquiries were other common transactions; * The highest level of transaction volume occurs between 10 a.m. and 2 p.m. Friday is the busiest day; and * Households located more than 20 miles from one of their credit union’s branches account for 36.7% of the households that use shared branching.
Members of credit unions in the two-year study used 509 shared branch locations on average. CO-OP Financial Services is a credit union service organization in Rancho Cucamonga, Calif., offering Shared Branching services to member credit unions.