ALEXANDRIA, Va., July 16, 2015 /PRNewswire-USNewswire/ -- It's no secret that more than ever before, people are using mobile devices to conduct financial transactions which, just a few years ago, could only have been accomplished with a telephone call or by physically visiting a "brick-and-mortar" branch.
"The introduction of the telephone call center made branches less relevant in a world where most people value their time. Mobile apps represent a leap forward in technology. They can be powerful time management tools that literally place the versatility of online transactions in the palm of one's hand—from anywhere on the planet that has an Internet connection," said James Schenck, president and CEO of PenFed Credit Union.
PenFed maintains branches in select locations, but as the credit union expands its operations, members should not expect to see an upswing in new branch openings. Schenck said, "I won't say that branches are obsolete, but our members are now accessing information via mobile devices at a rate that has surpassed branch visits and telephone calls combined."
In 2014, 80 percent of member interactions—logons, balance checks, transactions, etc., with PenFed Credit Union involved a web or mobile device. 15 percent took place via phone, and branch visits accounted for the remaining 5 percent.
Schenck added, "We will continue to operate branches where it makes sense from a strategic standpoint. However, opening more of them is not a part of PenFed's growth strategy."
As a result of the cost savings by having a small branch footprint, PenFed can pass along those savings in the form of higher savings rates for its depositors and lower loan rates for its borrowers.
"The world has changed, and our members can count on PenFed to continue to adapt and innovate with the intent to provide best-in-class member experience at the forefront of all we do," he said.
PenFed has responded to the explosion of mobile use by fielding a robust User Experience team led by Brandon Harris, director of user experience at PenFed.
"Part of the strategic vision of PenFed involves the investment of some serious time, energy, emotion and resources in mobile," said Harris. "Mobile apps are game changers in the truest sense, and organizations that are unwilling or unable to adapt to become mobile friendly have already been left behind. The fact that both mobile and digital are such critical components of PenFed's future makes it a very exciting and rewarding place to be."
Established in 1935 as the War Department Credit Union, PenFed is one of the largest credit unions in the country, serving 1.3 million members worldwide; with nearly $18 billion in assets. Its long-standing mission has been to provide superior financial services in a cost effective manner, while being responsive to members' needs. PenFed offers market-leading mortgages, automobile loans, credit cards, checking, and a wide range of other financial services with its members' interests always in mind. Serving a diverse population, PenFed offers many ways to become a member; including numerous employee groups and association affiliations. PenFed is federally insured by the NCUA and is an equal housing lender. PenFed does business in accordance with the Federal Fair Housing Law, the Equal Credit Opportunity Act, and is a member of NAFCU. To learn more about PenFed, visit PenFed.org, like us on Facebook and follow @PenFed on Twitter. Interested in working for PenFed? Check us out on Linkedin. We are proud to be an Equal Opportunity Employer: M/F/V/D.