A new branch project is one of the most visible investments a credit union can make.
It affects capital planning, field of membership strategy, staffing, technology, brand perception, and long-term growth. That makes it risky to rely too heavily on a familiar ZIP code or a market that simply “feels right.” Those instincts need to be tested against real-world data.
That was the central theme of a recent conversation between Coquise “Coco” Frost, Director of New Business at CUCollaborate, and Marc Healy, Director of Retail and Business Development at The Element Group.
Their discussion focused on a question credit unions face often: how do you move from growth ambition to a branch strategy that is sound on paper and workable in practice?
Is a Market Analysis on Your 2027 Radar?
For credit unions planning to invest in their branch network, a market analysis can help leadership test their assumptions before selecting a location or project direction.
That applies to more than expansion. A relocation or renovation can raise questions about whether the current location still supports the credit union’s growth strategy. A merger can create similar questions across several locations.
The Element Group’s Branch Radar Assessment helps leadership identify where growth and investment questions may deserve more attention as planning begins.
Test What You Know About the Market
Credit union leaders often know their communities well. Coco’s process tests that knowledge against the credit union’s own member data and external market information before a major decision is made.
- Who are your ideal members?
What does current member behavior reveal about the people the credit union serves best? - Where do those members live?
Where does your membership live and transact across the existing network? - What data should guide the decision?
Is the credit union looking at field of membership opportunities, location options, demographics, competition, and growth potential together?
Before a credit union opens, closes, relocates, renovates, or rethinks a branch, it needs a clearer view of who it serves, where those members live, how they engage today, and where growth can be defended over time.
A Data-Driven Process Brings Structure to the Decision
CUCollaborate combines the credit union’s own member data with external market information to help leadership evaluate the opportunity.
That process includes:
- Removing subjective bias – Credit union leaders may know their markets well, but familiarity can blur the view. CUCollaborate helps separate community knowledge from assumptions so the board and leadership team can evaluate the opportunity through an objective lens.
- Analyzing the trade area through the credit union’s own members – Rather than relying on a generic market profile, CUCollaborate looks at how members actually behave. That includes how far members travel to a branch or ATM, how often they visit, what they do in person, what they do digitally, and where they live and transact across the network.
- Quantifying opportunity and competitive pressure – CUCollaborate layers multiple data sources together, including NCUA data, FDIC data, and U.S. Census data. Coco emphasized the importance of looking beyond ZIP codes and into Census block groups because a strong submarket and a weak one may be only a mile apart.
- Building stakeholder consensus – A branch decision shouldn’t depend on the loudest opinion in the room. CUCollaborate helps leadership teams focus the conversation on data so they can make defensible recommendations about whether to keep, close, relocate, or invest in a specific market.
Coco also emphasized member benefit when evaluating growth opportunities. Leadership needs to be able to explain why the investment makes sense for the cooperative and the members it serves.
For a member-owned cooperative, that standard is not optional. Whether the strategy involves a new branch, an underserved area expansion, a charter change, or a merger, the business case should always come back to the member.
Market Assumptions Affect the Branch Plan
Branch projects often gain momentum quickly. A credit union identifies a market, sees a growth opportunity, and moves into real estate, construction costs, finishes, and floor plans.
But if the market assumptions are wrong, the branch can be wrong before the first wall goes up.
Marc described branches as market-specific investments. The Element Group uses the market findings as one input to the physical planning process. Marc also looks at how members are expected to use the branch and how the operating model needs to work within the location.
A younger, digitally engaged market may call for a smaller footprint, more self-service technology, and flexible consultation space. A relationship-driven community may need more hospitality, advisory areas, and room for community connection.
The consequences usually show up in the day-to-day operation. The footprint may be too large or too small. The staffing model may not match traffic. The technology may not fit the way members prefer to engage. The site may miss important visibility or access patterns. The layout may look polished but fail to support the employees and members using it every day.
Data Shouldn’t Stop at the Board Presentation
The partnership between CUCollaborate and The Element Group is active at the handoff between strategy and execution.
CUCollaborate helps the credit union determine whether a market is worth the investment, and why. The Element Group uses that information to determine what the location should become and how it should work.
That distinction matters because too often, market analysis and branch design are treated as separate workstreams. The data may support a board decision, but then the physical plan defaults to familiar templates, past assumptions, or preferences that are not tied closely enough to the market.
The Branch Works Best When Its Purpose is Clear
The market findings should carry into the branch plan. If advisory relationships are important to the market, the space needs to support those conversations. If visibility or staffing are important considerations, they should be addressed early in the planning process.
Coco noted that the branch may be the first meaningful interaction a prospective member has with the credit union. In her view, that experience should reflect the credit union’s mission and the community it serves.
Marc described this as the choreography of the branch. He looks at how a member approaches the site, enters the space, understands where to go and moves through the experience before a formal conversation begins.
Branch Strategy Is Part of the Broader Growth Question
A new branch is rarely the only growth decision a credit union is considering. Field of membership expansion can create access to new markets. A merger can change the existing network and raise questions about where future investment belongs.
Coco also discussed underserved-area strategies as another path credit unions are considering. These opportunities require analysis of the market and regulatory requirements before the branch discussion begins.
The physical network becomes part of each of these decisions. Branch and ATM access can affect how a credit union serves a market. Marc’s work begins once the opportunity is better understood and the institution needs to determine what type of physical presence can support it.
Credit unions are evaluating new markets, field of membership expansions, underserved areas, mergers, charter strategies, and community growth at the same time. Many are trying to create enough room for growth not just for the next year, but for the next five to ten years.
- Growth pressure is increasing across the industry
- More credit unions are exploring mergers
- Field of membership expansion remains a major growth lever
- Underserved-area strategies are part of the conversation
- Branches and ATMs still matter
- Branch placement has to be intentional
- A branch can support a larger growth strategy
- Data and scenario planning are becoming essential
When Should Market Analysis Move Up the Priority List?
The purpose of an analysis is to give leadership better information before the credit union commits to a specific branch investment. Consider taking another look at the market when:
- leadership is evaluating a new market before selecting a site;
- a major renovation is planned for an existing location;
- a relocation is under consideration;
- a merger has changed the branch network; or
- field of membership expansion creates new market opportunities.
Before the Branch Decision is Made
Market analysis gives leadership information to evaluate where branch investment makes sense. That work can also provide useful context once Element begins evaluating the physical location.
For Marc, the market findings are part of the branch planning process. Member behavior and the intended service model can affect decisions about the site and the environment. Keeping that information connected to the physical planning process helps the design team understand the assumptions behind the investment.
If your credit union is reviewing where to invest across its branch network, the Branch Radar Assessment can help identify whether growth and investment strategy deserves more attention in your upcoming planning.