WINSTON-SALEM, N.C.—Don’t confuse Truliant FCU’s big expansion plans with the credit union attempting to be “bank-like.”
Instead, said CEO Marc Schaefer, the 10 branches the credit union plans to open in the next two years is all about providing better service to a membership that still wants bricks and mortar.
Despite years of predictions of the demise of the branch due to the growth of e-services, particularly mobile, Schaefer said polls of Truliant’s membership indicate branches will always have their place.
“We don’t want to grow up to be a bank,” said Schaefer about the Charlotte, N.C., market expansion that will cost Truliant $11 million and bring the CU’s total locations to 33. “We know the difference and our members know the difference.”
Big Market Presence
The expansion will give Truliant 14 “member financial centers” in the Charlotte-Mecklenburg region, giving it the second-largest presence by physical location among credit unions in Charlotte and the largest open eligibility membership presence in the region.
Emphasizing digital at the expense of branch locations won’t work for Truliant members said the CEO, who is well aware more credit unions are pursing an expanded digital service strategy.
“We don’t think we can go to either extreme,” explained Schaefer, who said the credit union has all the e-banking services members need—mobile, home banking, remote deposit capture, and mobile bill pay. Truliant also relaunched its digital offerings using responsive design to provide maximum presentation and ease of use among multiple types of devices, while also adding interactive calculators and decision tools
“The branch, to us, comes down to what kind culture you have and what happens at your locations,” the CEO said.
Marc Schaefer, Truliant
Schaefer, who has been CEO at Truliant for 20 years, said the credit union does not have a sales culture and its mission is to help members make the best financial decisions—something that is best done in person, and something the credit union can afford to do.
The $1.8-billion Truliant came through the recession in sound financial shape, steadily growing assets and showing profits between $9-$12 million annually from 2010 through 2014.
“We made some pretty good decisions in those tough years, and while we are not patting ourselves on the back, we asked ourselves, ‘What do we earn for doing that?’” explained Schaefer. “The answer is that we get to serve more working families and help them improve their lives. And the most obvious place to do that is in our market that is growing the fastest.”
Big Bank Presence
Not surprisingly, Charlotte has a significant bank presence, with Bank of America headquartered in the market. Wells Fargo is also a significant player. But a study by Truliant in 2013 indicated 44% of the local population are customers of Wells Fargo but would like another choice—especially a credit union choice.
“Consumers wanted a financial institution they could trust. We have the financial strength,” said Schaefer. “We have the opportunity to do more in one of the markets we have been in for many years, but to capture more households and serve more members we had to have more locations.”
But those locations can’t look like a typical branch, explained Schaefer. “Our new offices are often right next to a Wells Fargo or BofA branch. So what we have to do is convince consumers that something very different is happening when they come into Truliant.”
The new branches are not big—around 2,000 square feet—are being constructed in leased space and are high-tech.
“We call them member financial centers and they are designed more like a Starbucks,” said Schaefer, adding that the streamlined approach to expansion cut the price tag by about one-third. “There is no teller counter and instead we have teller pods where members work one-on-one with our staff who can pivot the PC screen to share information with members.”
120 New Jobs
High-tech ATMs handle typical teller transactions and leave employees to do consultative work. “Staff handle more complex transactions and provide guidance to members,” Schaefer said.
The expansion will create more than 120 jobs in Charlotte.
“You can only centralize so much,” said Shafer about CUs moving in the direction of cutting staff in favor of larger call centers. “If you are going to embed yourself in the community you have to have people. These new offices are highly efficient, so we are not over-hiring. And when you put more branches into one area you actually increase the business each branch generates compared to what you would get from just adding one more office.”