The Credit Union Branch Gets a New Scorecard

As routine transactions migrate to digital channels, credit unions are reimagining physical branches for more personalized interactions. Gen Z consumers, who are selective about branch usage, prefer opening new accounts in person but are less inclined to seek in-person financial advice. However, when Gen Z receives tailored guidance during an in-branch conversation, 76% say they will act on it.

This indicates that the value of physical banking lies in the personalized financial advice it offers, even among those who generally prefer other channels. Credit unions are adapting by converting branches into advisory hubs and enhancing ATMs to facilitate self-service for routine transactions. The shift focuses on relationship outcomes, such as member engagement, financial guidance, and long-term relationship growth, rather than transaction volume.

Sixty-two percent of surveyed credit union executives plan to open new branches and repurpose existing ones, with location decisions based on factors like digital adoption rates, operating costs, and younger-member growth. In this new model, credit unions find renewed value in the branch when an in-person interaction leads to meaningful financial guidance and subsequent member action.