Branch Purpose: Balancing Opportunities to Save and Grow

Branch Purpose at a Glance:

• Perceived convenience is the #1 reason why people do business with a specific bank or credit union
• Even with easy access to digital banking and mobile apps, consumers continue to choose the branch for financial guidance and expert help and support
• 65% of bank branches are traditional models not primed for a more modernized purpose
• Retail delivery should support purpose for consumers, and at the same time provide value for financial institutions

As any consumer can tell you, transactions no longer take center stage at the branch. People are visiting branches less often, and when they do, they’re likely not depositing checks or getting cash. After all, they have far more convenient channels for that – mobile apps and ATMs or ITMs. “Even when consumers have easy access to digital banking and mobile apps, they continue to choose the branch for core banking functions,” according to Believe in Banking. “Those include account opening, financial guidance, checking or savings queries, money management, customer complaints, and expert help and support.”

The modern branch is the site of:

What consumers are looking for at the branch is what Adrenaline’s President and CEO Gina Bleedorn calls “dialogue banking” in her keynote at BankSpaces. But two-thirds of the bank branches in the country are not ready for that more modernized branch purpose, based on Adrenaline’s analysis. “Most branches today are not designed for what customers want or what you want to deliver as a banker,” according to Gina. “There are banks still actively building traditional locations. Do not do that. Teller lines do not support your efforts to modernize the branch banking experience.”

The consumer has already settled on the experience they want and the new purpose for the branch. “It is not banker led, it’s customer led,” says Gina. “What do they need? It is not just for customers; it’s open to the community. It is not just a banking experience; it is an experience with your brand.” The front door is a brand beacon – this perceived convenience is the number one reason people choose to do business with a financial institution. The branch has experts available for advice in moments that matter. Human service is ready for problem resolution, and basic transactions are there when other channels won’t work, like cash services for small business.

Retail delivery should support purpose for consumers, and at the same time provide value for banks. The needs of the people a bank is serving are married to are the needs of the bank for opportunity and efficiency. Gina says, “The front door for consumers means acquisition for you. Consumer demand for financial advice translates into opportunity for cross-selling and expanding share of wallet. Human service for consumers equals loyalty for your bank. You also want basic transactions to be able to move into more efficiency for your bank.”

Through the network of retail locations, banks are looking at ways to balance savings and growth. “Across the spectrum in your branch network, you really can save and grow,” according to Gina. “There is opportunity. I’ve not yet met a bank that we couldn’t help take some cost out of somewhere.” These levers of value in the branch channel are top of mind as banks take on transformation activities. “Not all branches or markets are created equally. So, as you think about your branches, think about these drivers. Think about opportunities to save and to grow.” Network transformation is a journey, requiring iterative evolution to stay relevant.

Best practices across the network include:

Acquisition

• Activate the branch as a billboard with inside-out projection, signage, lighting and architectural features
• Leverage windows for messaging through on or behind glass displays and exterior-projecting digital signage
• Create space for the community to use for events, meetings, co-working, and general hospitality

Cross-sell

• Open the floor plan with inviting, flexible seating options and engagement areas to enable conversation
• Utilize digital signage of all sizes to inform, entertain, and market for increased share of wallet potential

Loyalty

• Deploy inviting, concierge style greeting to welcome, triage and direct or service customer needs
• Localize authentically to connect with people and communities

Efficiency

• Amplify self-service as human alternatives that boost perceived presence
• Celebrate the drive-up, creating a brand experience outside on par with inside

To learn more about branch optimization and network transformation for financial institutions, or to speak with one of Adrenaline’s 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.