Branch location matters

In addition to examining credit unions chartered in rural areas, CUNA economists looked at credit union branching trends. That’s important because many credit unions headquartered in urban or suburban areas operate branches in rural areas.

Preliminary results of this work reveals that branch location matters, especially for nonwealthy consumers. Importantly, compared with for-profit banks, credit unions locate a higher percentage of their branches in lower-income and modest means areas.

Banks locate a higher percentage of their branches in higher-income areas.

Those findings hold for both urban and rural areas. Credit unions clearly are doing their part to reduce obstacles to financial inclusion across the country.

CUNA economists continue to look at branching and study branching trends over time. These trends may show that banks are closing branches in challenged areas while credit unions reflect a continued commitment.

Federal Deposit Insurance Corp. data shows that banks have closed more than 11,000 branches since the Great Recession. According to the National Community Reinvestment Coalition, they’ve created nearly 90 banking deserts in the process.