Channel Optimization: How a Credit Union Transformed Efficiency and Enhanced the Member Experience
Nature of engagement: Channel Optimization
Assets: $3.5B
Members: 188,000
Headquarters: The Southeast
Branches: 30+
The credit union sought to restructure its organization to align with market changes and improve financial performance while enhancing the member experience.
Background
Channel Optimization is critical for credit unions striving to enhance member experience while maintaining financial stability and growth. While branch-based transactions are expected to decline to 20% of all financial institution transactions by 2026*, proximity to a branch remains a key factor for many consumers when selecting their primary financial institution. Business members' also consider a nearby branch a key factor due to their continued need for access to coin and currency.
The ongoing evolution of the role of the branch presents a significant challenge for credit unions that seek to deliver a meaningful member experience.
The credit union, an institution with over $3.5B in assets, 30+ branches, and serving more than 188,000 members, sought to restructure its organization to align with market changes and improve financial performance while enhancing the member experience.
Solution
The credit union selected Engage fi to conduct an organizational efficiency analysis based on the consulting firm's knowledge of the credit union space. Unlike large, non-industry-specific consulting firms, Engage fi provides tailored solutions that leverage the credit union's member data and insights while aligning with their core mission, vision, values, and culture. Having established a strong partnership through previous successful projects,
Engage fi was the ideal choice for this endeavor. Engage fi partnered with the credit union to conduct a comprehensive analysis of their operational structure, ensuring alignment with the credit union's key objectives. It was determined that only 23% of branch employees were being fully utilized based on in-branch traffic. On average, the call center had 4,000 overflow calls per month, 15% abandonment rate, five minute 30 second average per call time, and a seven minute 40 second wait time. They also discovered that the member account originating process/workflow varied significantly by channel.
It was identified that a $6.SM dollar gap existed to reach the credit union's peer group median for critical KPl's. Achieving this goal required a comprehensive overhaul to increase net operating income, which would align the credit union with the industry benchmarks of their peers.
Results
Engage fi recommended that the credit union move to a member-centric organization model, which would result in $l2M improvement to net operating income. A typical credit union business model organizes the financial institution around business lines, departments, and delivery channel verticals. The new model organized the credit union around the member while improving the credit union's efficiency and quality of the member experience.
The analysis of channel utilization and member-centric reorganization classified branches into different groups, enabling more efficient workload distribution across all delivery channels. As a result, branch full-time employee utilization increased from 23% to 59%. Additionally, new member engagement opportunities were identified, creating potential for increased revenue through enhanced member cross-sell. Once the model is fully implemented, a follow-up assessment in 2026 will evaluate its impact and determine if further operational adjustments are needed.
The organizational efficiency analysis has proven to be transformative, improving employee utilization while uncovering new revenue opportunities. Through this initiative, the credit union has positioned itself for sustainable growth and enhanced member engagement while exceeding peer median financial performance.
*BAI March 2024
Channel Optimization Results
$
12
M
Improvement to Net Operating Income
59
%
Full-Time Employee Utilization
Streamline Operations and Enhance the Customer/Member Experience
