Many industry executives are contemplating the fate of the branching model, but few have been as bold as Patricia Zyma (pictured), president/CEO of Utilities Employees Credit Union.
Her $1.1 billion credit union, headquartered in Wyomissing, Penn., has altogether abandoned the notion that branches are a required part of every credit union's existence or success, and she had some advice for credit unions that want to do the same.
From its beginnings in 1934, UECU has followed a virtual business model to serve its 44,000 members. Today, UECU still has no branches, doesn't participate in any shared branching networks and doesn't run an ATM network. UECU's call center generally handles questions about transaction activities, and human financial service consultants and wealth management consultants are available via phone or virtual chat. Its operating expenses are about one-third of its peers, Zyma said.
Recommended For You
Zyma has been with UECU through much of its transition into the tech era. She joined as a vice president in 1997, later rising to CFO and eventually executive vice president. After nearly 20 years with the credit union, Zyma, who is also a CPA, became president/CEO in October 2014. Today she runs a credit union that has managed to make almost $5 million in distributions since 2011.
Part of that performance is directly attributable to avoiding a brick and mortar existence. The credit union's branchless concept is attractive to millennials, though members of all ages are drawn to it, often because lower operating costs and a virtually nonexistent capital expenditures budget allow UECU to offer better rates, Zyma said.
Despite that, credit unions thinking about going branchless have to do it with their eyes wide open, she warned.
"While we have a high share of wallet of our members' loan and deposit business, historically, obtaining the checking relationship without a branch presence has been more challenging," she said.
Mobile deposit and other technologies have made those obstacles less of a factor, but a strong marketing plan is still absolutely crucial, she explained. Website marketing, social media, email campaigns and webinars are UECU's primary methods for building brand recognition – and those channels are less expensive than radio, television and billboards, Zyma noted.
"Since we do not have branch locations, we do not have the same visibility that they provide in keeping us front of mind for members or prospective members and in keeping members informed about new developments in the credit union's products, services and benefits," she explained.
Because prospective members can't walk into a branch to open an account, UECU's account representatives work closely with sponsor companies in the utility and energy industries, often doing presentations and seminars for employees to gain new members.
A budget for a larger-than-usual IT staff is also necessary, Zyma said, but the real challenge for credit unions that want to go branchless is to stay human in the eyes of the members.
"As we consistently read, while consumers, notably millennials, will judge a financial institution based on its digital capabilities, they also still want the personal touch – trusted advisers that will help to guide them through financial decisions," she said. "Credit unions have historically played an important role in serving as the trusted adviser for our members, and it is critical that we remain focused on this role as our members more often access services remotely."
Learn more about UECU's operations in the May 11, 2016 print issue of Credit Union Times.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
