Community Credit Union and Albertson's partner for in-store branches

PLANO, Texas - Having one stop shopping for both your groceries and your finances is nothing new in Texas-unless the financial institution in the store happens to be a credit union. The $752 million Community Credit Union has announced a partnership with the Albertson's grocery store chain to place up to 11 in-store branches in the greater Dallas area through the year 2003. This partnership makes CCU the first credit union in the state of Texas to offer members in-store banking via grocery stores. "The in-store branch will open us up to a greater market area and (give us) the ability to provide more one-stop convenience for our current and future members," said Gary Base, president/ CEO of CCU. CCU's in-store locations will offer all the products of a full-service branch, including a full range of deposit accounts, mortgages and both individual and business loans. In addition to full teller services, each location will have a private office area for conducting loan and other member business. With Web access and ATMs present in the new branches, members will also be able to access their accounts after branch hours if the Albertson's store is still open. While no primary surveys were conducted to determine where its members shop, according to Judy Parsons, CCU's vice president of marketing, CCU had been looking for a cost efficient way to penetrate those areas where currently there are no CCU brick and mortar branches. "Based on secondary research of different grocery stores' reputation, community involvement and rate of growth in those areas we wanted to target, Albertson's seemed the best match for our needs," said Parsons. While in-store branches have existed for many years in the banking industry it is a relatively new delivery strategy for credit unions. In 1999, in-store banking grew to more than 7,700 branches across the nation, according to International Banking Technologies, an in-store baking provider. "The rapid pace of change in today's high-tech/high-touch evolution has many institutions wondering where to go next. I believe this will be a good partnership for Albertson's and CCU both, as well as for their members," said John W. Garnet, IBT CEO. Just in terms of start-up costs, the numbers seem to support his sentiments. Parsons estimates that for the cost of building one brick and mortar branch, CCU can put in 10 in-store grocery branches. So for a lower cost CCU increases their branch facilities while Albertson's gets to offer its shoppers a full service financial center. All new CCU in-store locations will be open Monday through Friday, 10 a.m. to 7 p.m. and Saturday 9 a.m. to 5 p.m. "To just be in-store is already such a wonderful cross selling tool," said Parsons. The first branch is scheduled to open this summer at the existing Albertson's location in Carrollton. The second branch is expected to open August 2000. -mbourjolly@cutimes.com