A few thoughts and ideas regarding improved branch banking

1. Web based strategies provide stickiness, but
The Future of Branch Banking
maximizing the in person transaction remains
Building Loyal Environments necessary to keep a customer for life. Armed
with smaller budgets, its just a matter of
! Large regional and super regional rolling up the shirt sleeves, and being
banks hardly go unnoticed these days with a creative when it comes to promoting
presence in most metropolitan districts. customer offerings.
Some even prefer to take on a futuristic look
reminiscent of a Times Square billboard. “Armed with smaller budgets,
Take for example walk up digital displays its just a matter of rolling up the
which let you do everything from banking to shirt sleeves, and being
movie ticket orders. With marketing creative when it comes to
superlatives like these, it’s no wonder promoting the branch offerings.”
community banks and credit unions are
challenged with advertising their services all So just what does the bank of the future
while on much leaner budgets. look like for regional banks? Thankfully
nothing like something you might see in a
! Online banking has made room for larger metropolis, but rather a central location
fewer teller lines and less foot traffic, so while with neighborhood appeal with retail
customers are making less trips to the strategies for cross selling opportunities.
physical branch, they still rely on its presence
for important transactions requiring a Banks are in the business of growing profits
personal touch. Its this personalization which after all.
is driveing the future of bank branches.

2. By the Numbers! branches can reach out to customers using
! Experts predict some banks will see retail ambitions without overwhelming costs.
closures of branches in the upcoming years,
while some emphasize a greater number of According to Celent, a Boston based
locations for increased foot traffic. Then there research and consulting firm, “Branches
are those analysts right in the middle, aren’t dead, they’re just different,” and thus
supporting a position in which the branch is need to undergo a change. So where to
here to stay, but undoubtably needs to start?!
undergo a transformation. If you are
considering which route to take, we invite you #1 Building Loyalty
t o e x p l o r e t o d a y ’s o p p o r t u n i t i e s f o r ! Banks are currently set up for high
engagement which don’t require flashing volume transactions at the teller line. For
lights and over the top electronics, but do years they have been working to cut back on
encompass a retail opportunity which in branch traffic, however as we know,
supports engagement. directing this traffic is still very
“Branches aren’t dead, important to customer
From promotional retention. Building loyalty can
they’re just different,”
items to way finding,
spatial design, and
signage, we present the future of bank start with small
branches which go the distance when it promotional items
comes to lowering attrition and rebounding such as quality t-
from the 2007 decline. shirts, giveaways,
a n d
Just the Facts environmental
! Consider the statistics. It still stands signage including
that people older than age 55 prefer to bank history walls, and
in person, while the younger generation well positioned
enjoys having options. With so many coffee kiosks.
offerings including loans, mortgages, and
investments requiring a personal touch,

3. #2 Maximize Investments
! Lean budgets can be stretched by
refreshing existing furnishings. For example
one banking customer is dealing with an
excess of teller windows due to the lower
volume of in-store transactions we are all
witnessing. The cost of removing this space
altogether is prohibitive, and would also need
a design update. Rather than leaving the
Rendering of teller line options
teller windows as is and risk the “going out of
business look,” We are helping this client colors, environmental graphics, POS, and
maximize their current investment with furniture.
environmental graphics promoting their
mobile banking application. #4 How May I Help You?
! Some banks are trending with virtual
The investment was practical especially since way finding rather than relying on subtle
the message would be stretched across layouts. Concierge acts as a welcoming
multiple locations. committee, guiding customers to various
destinations. Lounges are making headway
#3 We Like Small Banks too giving business customers a chance to
! Next up are dimensions. Small banks interact in video discussions with bank
can be fully functional with minimal square members who may be off site or use the area
footage. Take for example UMASS Five as a meeting spot for important transactions.
Credit Union’s 990 square feet of what was
once a sushi bar. Accustom to just a walk up #5 Create Work Centers
window, students and staff are now banking Kiosks are also gaining traction in which
at teller pods, with room to learn about customers can do everything from banking to
specialized products and services. The virtual life management similar to ticket
environment has a youthful appeal with dispensers at the airport, or self check-out a
consideration to professors and other the grocery store, where all one needs is a
members by incorporating brand appropriate real live person when they run into a hiccup.

4. The benefit to the branch is fewer staff total redesigns, and others are making
members and less overhead. changes such as lighting, color, and using
moveable furniture and office space.
#6 A Family Affair
Banking customers are real people with The branch of the future is bright, literally.
family, and playing on the lollipop bowl Some locations are bringing in updated
visitors are also starting to see kid’s areas for lighting which is more energy efficient and
the much needed distraction when doing even creates the feeling of being outdoors.
those essentials such as considering a home !
loan. On the topic of lounges, and office #8 Green Energy Initiatives
space, banks can also provide financial There are also banks taking on green energy
seminars, and teaching opportunities. initiatives in which there are no printed
# 7 Small Touches materials of any kind, rather signs indicating
! The number of banks undergoing where to find information online, or
redesign has increased over 2010, from 58 to encouraging those much needed
66 percent in 2012, and 55 percent will make conversations with loan officers and brokers.
major changes to branch designs enterprise
wide.1 What are all of these banks working Another big trend is scaleable structure. For
on? The situation varies, but some are doing some branches there is a cost saving to have
demountable walls for offices in the event
they change locations. The investment in
furniture isn’t completely lost in these cases.
#9 Service Promotion
! Taking a cue from retailers, banks are
doing things with layout including changeable
stands which can shift with marketing
campaigns. Looking to promote small
business accounts next month? That’s easy
UMASS entry wall and waiting area with a shelving unit, or table settings with
branded coffee mugs, brochures, and
giveaways. The benefit is the ability to modify
1 http://thefinancialbrand.com/25524/celent-branch-banking-in-a-multichannel-world

5. the scene preventing customer boredom couldn’t be missed, at the ATM and drive up
while showcasing your services. window.
! NSB kiosks are a great way to advertise as There still remain so many reasons for
well. Want to display holiday banking hours customers to put their mobile device away
while encouraging brand appeal? Use a cling and bank the old fashion way, face to face.
which can be easily Yet, with so many
recognized from the front choices these days,
entrance. Wall displays can and advertisements
include a pictorial of the coming at us faster
bank’s history warming up then we can blink, it
the environment while also is necessary for
telling a story and banks to change up
encouraging a community their appeal and go
feel of trust. Want to be a bit the way of retail
edgier? Invest in digital stores who know
how to sell a
signage which can be
product.
differentiated as needed.
Handouts, brochures, and Learn from the
giveaways can all be used to Big Retailers
cross-promote as well.
Some great
# 10 Optimize the Drive examples to
Thru consider are major
name brands such
Don’t stop at the door. as Levi’s, which has
Prototype small business kiosk
Utilize the drive thru for changed it’s department
those customers who only do their banking look at JC Penny’s to foster its brand with a
on the go. We have a client who rustic ranch vibe. This is what customers who
implemented a campaign for mobile banking, wear the jeans want to experience when they
and reached their audience with QR codes buy the product. Other brands are doing the
for downloading the application where it same thing in department stores, just take a
look around and see where your mind is

6. drawn, and consider how the display makes
you feel better about a purchase, and carry
that feeling all the way to the bank.
Levi’s new in-store retail area