{"id":54859,"date":"2022-09-22T10:42:07","date_gmt":"2022-09-22T14:42:07","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=54859"},"modified":"2022-09-22T23:45:18","modified_gmt":"2022-09-23T03:45:18","slug":"branchless-credit-union","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/branchless-credit-union\/","title":{"rendered":"Should Your Credit Union Go Branchless?"},"content":{"rendered":"

Citi Bank is the fourth-largest financial institution in the country. And for nearly two decades, Sumeet Grover helped Citi reach its full potential, working his way up to the head of digital, mobile, product and spend engagement marketing at Citi and perfecting the company\u2019s mobile app and mobile banking features for consumers.<\/p>\n

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So why did Grover decide in 2021 to leave the $1.6 trillion Citi Bank to become chief digital and marketing officer at Chicago\u2019s $14 billion Alliant Credit Union?<\/p>\n

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Grover simply saw Alliant as an amazing opportunity, in part because of their somewhat unique status as a branchless credit union<\/a>. Alliant is a national, entirely digital financial institution that meets its credit union members\u2019 needs through its expansive IT infrastructure and 24\/7 member care center\u2014with zero physical branch locations.<\/p>\n

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\u201cI\u2019m so passionate about delivering seamless member experiences, so it is an amazing opportunity,\u201d Grover told the Credit Union Times<\/a>.<\/p>\n

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If someone at the top of the banking world was willing to abandon Citi Bank in favor of Alliant\u2014in large part because of their branchless structure\u2014does that indicate that the future of credit unions will have fewer branches than Charlie Brown\u2019s Christmas tree?<\/p>\n

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The Alliant Example<\/h2>\n

Alliant trimmed its branches gradually. The Illinois-based credit union closed 10 of its last 12 branches in 2018, leaving just one downtown Chicago location and one at their Operations and Technology Center near O\u2019Hare International Airport. Then those two branches were closed in spring of 2020.<\/p>\n

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The decline in branch locations coincided with an increase in members, loans, and assets. According to CU Times, the credit union\u2019s membership grew from 439,028 in 2018 to 600,000 by 2021. During that same period, loans increased from $8.5 billion to $9 billion. Assets grew even more dramatically, from $11.2 billion to nearly $14 billion.<\/p>\n

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Of course, it\u2019s not as if all that growth occurred simply because Alliant shuttered a dozen credit union branches. The decline in physical locations had to be accompanied by strong products and services available through Alliant\u2019s online and mobile channels, along with exceptional customer service provided by its 24\/7 member care center.<\/p>\n

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Grover says Alliant customer service reps take their time when interacting with members.<\/p>\n

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\u201cWe\u2019ll talk to you,\u201d Grover explains. \u201cWe aren\u2019t going to rush in terms of managing our average handle time, or try to cross-sell you a product just because you called us. What we\u2019re going to do is provide the best possible member experience.\u201d<\/p>\n

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They also listen carefully to members\u2019 concerns, questions, suggestions, and feedback, which they use to decide what new features and functionalities they should offer.<\/p>\n

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\u201cMy member experience flows in terms of what I\u2019m hearing from our member care center,\u201d Grover says.<\/p>\n

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The Pros and Cons of Branchless Credit Unions<\/h2>\n

So, would your credit union be able to replicate some of Alliant\u2019s success by going branchless? It\u2019s difficult to say without first considering both the pros and cons of a branchless credit union.<\/p>\n

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First, let\u2019s list some of the pros of a branchless credit union:<\/p>\n

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