ST. LOUIS—Look for an increase in credit union branch construction in 2018, says L. Keeley Construction.
“As confidence in the economy has increased in 2017, we expect to see an uptick in brick and mortar investments by credit unions in 2018,” said L. Keeley Construction’s Director of Business Development, Casey Delaney. “There has been a consistent increase in building activity over the last 12 months and we expect that to continue.”
Delaney said it has taken a while following the recession for credit unions to gain more confidence in adding new offices.
“The seeds of confidence were evident in 2017 and now we expect them to bloom. It’s been a long road back from 2008 and we anticipate continued investments in technology and infrastructure for the next 18-24 months,” he said. “Our approach has been to differentiate ourselves from our competitors with a market strategy like our credit union customers—a focus on family, service and community that they can easily relate to.”
Exacting Standards
But with greater confidence comes more exacting standards from CUs, said Delaney.
“Credit unions want quality—quality of product, service, timeliness, attention to detail, craftmanship, and professionalism,” he said. “They want their members to take pride in their membership and know they have invested wisely. That’s what we deliver. Most everyone in the industry can draw – few can build to exacting standards. Our emphasis is on delivering a product that meets or exceeds our client’s expectations.”
Smaller credit unions too, are looking to build, but for more serious reasons, said Delaney.
Casey Delaney
“Smaller credit unions, those under $150 million in assets, are feeling pressure from both local community banks and larger credit unions,” said Delaney. “They are interested in maintaining their independence despite the growing likelihood that joining another organization may be necessary to secure their future. Some CEOs in this situation are asking their boards to invest in new buildings and infrastructure now in an effort to boost membership and visibility in the community before it’s too late.”
Tech Driving Bank Branch Consolidation
As technology begins to drive greater branch consolidation among banks, Delaney does not think that will happen to the same degree at credit unions.
“While predictions still loom over the future of financial facility branching and the dominance of technology in banking, those projections simply don’t mesh with credit union values,” said Delaney, adding that L. Keeley Construction expects to grow its market share over the next five years. “At credit unions, with their mission to help people, there will always be a need for members to connect in face-to-face with their credit unions.”