Shared branching is a cooperative network that allows members of participating credit unions to conduct transactions at other credit union locations, as if they were at their own. This means a member of “Credit Union A” can walk into a branch of “Credit Union B” (if they are both part of the shared branching network) and perform tasks such as making deposits, withdrawals, loan payments, and balance inquiries. It essentially expands the geographic reach of a credit union’s services without the need for it to build and maintain a vast network of its own branches.
The importance of this system lies in the enhanced convenience and accessibility it offers to credit union members, especially those who travel frequently or relocate. It allows members to maintain their credit union relationship regardless of their location, fostering loyalty and providing a competitive advantage against larger banks with extensive national branch networks. Historically, shared branching emerged as a way for smaller credit unions to collectively offer a broader range of services and compete more effectively in the financial marketplace.
