NEW YORK—Despite repeated predictions that branches would fade into irrelevance, they remain firmly entrenched in credit union strategy. Branch closures may make headlines, but for many CU members the in-person experience is still indispensable, a new study confirms.
According to the latest Credit Union Tracker from PYMNTS Intelligence and Velera, more than half of members — including consumers and small to medium-sized businesses (SMBs) — continue to prefer face-to-face service, underscoring branches as a durable pillar of trust and retention.
The August report, “The Omnichannel Imperative: Why Credit Unions Need Both Digital and Physical to Thrive,” finds that digital tools are essential for attracting younger members and driving growth. Yet, branches remain central to long-term loyalty, particularly among baby boomers and long-tenured members who continue to rely heavily on in-person banking. Far from obsolete, branches still play a vital role in balancing convenience with connection, PYMNTS said.
PYMNTS outlined three data points underscoring branch banking’s staying power:
- 51% of CU members still prefer in-person interactions. Despite the rise of mobile apps and digital onboarding, more than half of CU members — consumers and SMBs alike — say they would rather conduct financial business face-to-face.
- Baby Boomers lead branch-first engagement. Among older members, 65% report visiting their CU in person, and 53% also use CU websites — higher than any other generation. This group is most likely to see branches as central to trust and service.
- ATMs remain critical to daily transactions. About 26% of CU members use ATMs multiple times per week, with 70% citing cash withdrawals as the primary reason. Older millennials in particular lean on ATMs for deposits and withdrawals, showing that “physical” access extends beyond staffed branches.
“These numbers suggest credit unions must resist the temptation to go fully digital. Instead, they should redesign branches and ATM networks as complementary touchpoints in a member’s broader financial journey., PYMNTS said.