The poor economy is forcing many banks and credit unions to consider downsizing their branch networks. And if downsizing is done correctly, it could be a godsend to the institution.

A number of savvy credit unions are turning the down economy into an opportunity and using it as an impetus to assess the efficiency, productivity and ROI of their branch networks and make changes that will increase target growth, share-of-wallet and profitability. No longer is it sufficient to understand the value of adding one new branch here or there, merging for scale or making an acquisition in this or that market. We need to understand how to build solid branch network foundations so we can thrive rather than just survive in the future.

At issue is not the lack of data. Most credit unions have converted to branch level accounting and can analyze financial performance down to the product and member level. Market analysis provides geocoded financial data for a wide range of products down to the block level for today and in five years. What is often lacking is the ability or willingness to analyze a credit union's entire branch network.