On-Demand Webinar: Reimagining the Bank Branch

Branch Transformation at a Glance:

• Investment in the branch channel is surging, showing how much banks and credit unions value the branch
• Financial institutions that invest in their branch networks generate more than 22% in excess deposits
• For successful transformation, banks and credit unions must have a North Star strategy – a cohesive, customized vision for an organization’s retail delivery
• An action matrix helps banks and credit unions prioritize their actions across their networks

Despite dire headlines throughout the 2000s about the imminent demise of the branch, banking’s top generator of growth continues to deliver for financial institutions of all sizes. Investment in the branch channel is surging – demonstrating how much banks and credit unions value the branch for its ability to start and strengthen banking relationships. “Welcome to the branch race,” says Gina Bleedorn, President & CEO of Adrenaline, in her keynote at Future Branches in Austin. “If you haven’t already started gearing up, you’re already behind, because this is a marathon, not a sprint. It’s not about going faster and bigger, but about being smarter for the long haul.”

Before implementing any change at the retail level, banks and credit unions must have a firm foundation for how and why people use branches today. While online account opening is at its highest level, branch access is why consumers choose to bank somewhere. People want to know that banking experts are nearby when they need them. In fact, throughout the last 18 months, consumers have used branches more than any other channel to get advice, solve problems, and acquire new products. And while it may seem counterintuitive, younger generations use the branch more, not less. Gen Z interacts three times as much in the branch as Baby Boomers.

Branch Investment Pays Off

Financial institutions that invest in their branch networks grow more and grow faster, generating more than 22% in excess deposits from their branch investments, according to Adrenaline data featured in The Branch Advantage. Even more, when banking leaders were asked how they achieved success, the common thread for respondents was that they needed to think differently about change in a way they never had before. To realize the gains that come from their branch investment, banks and credit unions needed a transformative approach to change. To win the race, financial institutions must reimagine branching.

Transforming Branches and Networks

When transforming branches, banking leaders must address 1) how to expand to new markets and 2) upgrade the branches across their current network. To do that, banks must successfully merge data and design. “Maybe you have data and you’re not exactly sure what to do with it,” according to Gina. “It’s not just about going to areas that are growing – it needs to be deeper than that.” On the design side, is the analytics informing the investment? Does the branch archetype match the market? Gina says, “When analytics is not effectively connected to planning, banks end up with things like the right design and the wrong location or the wrong design for the market.” Data and design need to be cohesively connected through strategy.

Deciding where to build a de novo branch is one thing, but upgrading branch networks can often be even more complex than entering new markets. By leveraging the right analytics, financial institutions can successfully develop their strategy and create an implementation plan for deployment across a network in various states in markets with variable potential. An action matrix helps banks and credit unions prioritize their actions. Through the matrix, banks and credit unions will:

1. Fix underperforming branches in high potential locations with renovations or relocations
2. Rationalize underperforming branches in low potential locations with exits or downsizes
3. Grow investment in high potential branches, including branch rebranding, upgrades and enhanced marketing
4. Harvest and defend existing portfolio in high performing branches with refreshes, select upgrades and marketing

For an action matrix to be successful, banks and credit unions must have a North Star strategy – a cohesive, customized vision for an organization’s retail delivery. To maintain consistent growth, institutions need to use their branch network to keep harvesting. But how do you continue to cultivate more business? Activate strategy with a foundation of data and design. “When you start classifying your branches in this way, it starts informing action and creates a repeatable formula for growth,” says Gina. “Start to think as networks, not as just singular branch deployments. That is how you create consistent, efficient, and effective growth.”

For examples of how institutions activate the action matrix, watch the full video from the keynote “Branching Reimagined: Merging Data and Design for Strategic Transformation.” To learn more about branch optimization and network transformation for financial institutions, or to speak with one of Adrenaline’s brand-to-branch experts, contact us today.

Adrenaline is an end-to-end brand experience company serving the financial industry. We move brands and businesses ahead by delivering on every aspect of their experience across digital and physical channels, from strategy through implementation. Our multi-disciplinary team works with leadership to advise on purpose, position, culture, and retail growth strategies. We create brands people love and engage audiences from employees to customers with story-led design and insights-driven marketing; and we design and build transformative brand experiences across branch networks, leading the construction and implementation of physical spaces that drive business advantage and make the brand experience real.