Most credit unions would say that a key operational imperative is reducing the cost created by complexity. Everyone must shoulder the cost associated with the regulatory and compliance aspects that come with running a financial institution. To deliver more value to members, credit unions must look for other areas where savings can be gained by increasing effectiveness and efficiency.

A focus on modernizing with digital offerings is not enough; credit unions must simultaneously make strategic decisions about their physical footprint.

Branch redesign efforts attest to members still having close relationships with the people in their local branch. And, people (even millennials) still need cash. The ATM has been a big part of this ongoing process to provide a convenient, frictionless and intuitive experience – that's also cost effective – regardless of what members need to do. Celebrating their 50th anniversary this year, ATMs have been evolving into a digital/self-service channel that can accommodate consumer demands previously requiring branch visits. However, another emerging trend running counter to this modernization is the ATM network being seen as a loss leader – something that must be provided, but is a commodity on which the organization can make little or no money. Such institutions are selling off their entire fleet of ATMs and replacing them with interactive teller machines (ITMs).