Highway engineers often say you can't out build traffic. Expanda two-lane road to four and more vehicles come. Add two more lanesand still more motorists arrive.

If Michigan State University Federal Credit Union in EastLansing is any barometer, the same thing is true when it comes toincreasing member contact options. In 2006, the credit union had3.5 employees handling member inquiries. In 2011, Michigan StateFCU hired 95 employees, 44 of them for newly added positions, tofield e-mail, chats and phone calls. That worked out to 26.5 FTEpositions. The number of transactions per employee has remained thesame.

The pace isn't expected to slacken this year. In fact,projections show e-mails to the $2.25 billion credit union soaringpast 80,000, compared to just under 60,000 in 2011. Online chatsshould total 20,000, up from the 2011 count of some 15,000.

April Clobes, executive vice president/chief operating officer,noted that in 2006 MSU started a department to handle electronicservice to members–e-mails, online applications and otherelectronic interaction.

“Since then, we have seen year-over-year growth that has beenabout 40% a year,” she said. “We're at 38% growth already thisyear. If we annualize the rest of the year, we figure about 115,000e-mails and chats this year.”

What has spurred that growth?

“A couple things,” Clobes indicated. “Serving the university, wehave a young membership population. Each year, we open new accountsfor young people who are used to conducting conversationselectronically. Other members discover it, and learn they'regetting personalized responses quickly.”

Approximately 20% of members live outside Michigan. Surveys showthey're pleased questions can be answered through an e-mail orchat. Clobes believes when a member in Michigan who has usedon-line contact moves out of state, that member realizes they canstill maintain their relationship. She said that has definitelyimproved retention.

All this must mean traffic at traditional branches has slowed.Not so, Clobes said. Use of on-line contact has not cannibalizedother channels. Many members, including young people, use allavailable channels.

“What they are looking to do with us drives how they interactwith us. If they want to know their balance, they look that upthemselves. But a member may review an account on-line and think,'I don't remember doing this transaction. I'll send a message.'”“Somebody explains it, and they're good. Some people want to applyfor loans on-line but come into the office to pick up their check.Other people have a complicated situation, or it's the first timethey've ever applied for a loan, so they want to talk to someone inperson,” Clobes noted.