Q:

What are the key functions of credit service centers?

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Quick Answer

Key functions of credit service centers include allowing credit union branches to cooperatively share their benefits with customers and be able to continue to provide services in the event of a disaster, as well as helping branches market their services for higher customer awareness. As of 2015, the number of credit unions participating in shared branching is over 1,800, according to Co-Op Financial Services.

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Full Answer

Credit service centers provide a way for customers of credit unions to perform transactions at different branches as part of the co-op. For example, a customer of one credit union could go to an entirely different credit union and deposit money, make withdrawals, send money transfers and make payments on loans. This provides more convenience for customers who may be out of town or work near a different credit union. Sometimes, credit service centers are also able to offer services such as money orders, cash advances on credit cards, notary services, faxing, account history printouts and travelers' checks, notes the United States Senate Federal Credit Union.

Because the National Credit Union Service Centers network has many locations, this allows customers to still have access to their account services if a disaster causes their own credit unions to not be able to open. This also benefits credit unions by allowing services to still be available.

Finally, credit service centers provide a way for individual credit unions to increase awareness of their services and possibly gain more customers. This is because the customers can join a credit union and be serviced through other locations.

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