Understanding Activity Branch Assignments

To configure these Branch Assignments, go to this screen.

CU*BASE uses three* branch assignments when working with members:

For example, a CU has three branches and 30,000 members. Their member branch analysis looks like this:

Branch

Shares

Loans

# of Members

01

$45,000,000

$22,000,000

15,000

02

$37,000,000

$16,000,000

10,000

03

$10,000,000

$5,000,000

5,000

 

$92,000,000

$43,000,000

30,000

Branch 01 is the original branch of the CU and is closest to the main sponsor that started the CU 20 years ago. Since then, the CU merged another CU and designated that credit union’s main branch as 02. These two locations are approximately 20 miles apart. Based on the merger, the CU saw a need to open a third branch halfway between the existing branches. Branch 03 is basically a community branch serving the members who live between the two primary sponsors that make up the merged CU.

When we do an Activity Branch analysis and run our asset analysis by activity branch, the credit union looks like the following example. This is based on assigning Activity Branch based on where members do at least 40% of their transaction activity.

Branch

Shares

Loans

# of Members

01

$15,000,000

$5,000,000

3,000

02

$29,000,000

$21,000,000

10,000

03

$48,000,000

$17,000,000

17,000

 

$92,000,000

$43,000,000

30,000

These results might be analyzed as follows:

Remember that Activity Branch is not an “assigned” designation like the member branch. Instead, it is calculated as needed for various reports and inquiries based on parameters you define (see below) to reflect where a member actually does business with the credit union. Although some systems actually use activity analysis to reassign the member branch, CU*BASE uses this separate calculated Activity Branch designation so as not to lose key information about the member’s origin and history.

Calculation Example

The following chart shows a month’s worth of activity for a member that is assigned to Member Branch 03. The parameters used for calculating activity branch are the same as in the sample above (40%, origins 01 and 03). The member had 10 share draft transactions and 8 ACH transactions that were posted by the main branch 01. (These were not considered part of the activity analysis, and therefore not reflected in the Analyzed Transactions figures.)

Activity Branch

Total Transactions

% of Total

Analyzed Transactions

% of Analyzed

01

20

66.7%

2

20.0%

02

6

20.0%

6

60.0%

03

2

6.7%

1

10.0%

04

2

6.7%

1

10.0%

 

30

 

10

 

If we analyzed all transactions the member had in a month, his activity branch would be 01. If all back office activities were posted through a single branch, which is common in many credit unions, the activity branch would be skewed toward branch 01.

When we exclude all transactions except origin codes 01 and 03, we get a different picture. When only 10 lobby and lending transactions are analyzed, and the greatest percentage of the member’s activity is at branch 02. In summary:

 

Link to ID: https://help.cubase.org/cubase/cubase.htm#ActivtyBranchDef.htm