Back in 2017 we had written an article titled What Does “Branch of the Future” Really Mean? It touched on what many forward-thinking financial institutions were doing at the time, including breaking up the teller line and training staff as universal associates to accommodate a shift from transactions to conversational interactions.
Fast forward nearly eight years and this is a description of “The Branch of Today.” This has been the biggest shift in credit union and bank branching since the first branch was built centuries ago.
So where are we now and where do we go from here?
The branch of the future looks different to every institution – but one core idea remains consistent:
The purpose of a branch is fundamentally changing from a space that facilitates transactions to an environment that builds deeper relationships between your credit union or community bank, your staff, and your customers.
Digital banking is no longer a differentiator, it’s table stakes. Institutions that continue to silo delivery channels are at risk of becoming commodities in the eyes of their market, while those that focus on delivering experiences that bring their brand to life and build authentic relationships with their customers will thrive.
Build Deeper Relationships
Digital banking has reduced overall transaction volumes, but rather than signaling the death of the branch this creates an opportunity to build deeper and more valuable relationships in the branch.
Customers are still coming into the branch, but their purpose for visiting has shifted towards more valuable and complex needs such as buying a house or planning for retirement. With basic transactions such as check deposits moving online, your staff are freed up to focus on cultivating these more personal relationships with customers.
By empowering your staff in universal associate roles, training them not to complete tasks but to solve problems based on their knowledge of your brand, products, and financial issues, they will be able to create a helpful and engaging experience that sticks with customers and builds trust and loyalty.
Drive Technology Innovation with Purpose
One early attempt to integrate technology was iPad stations in branches. They sat unused not because customers weren’t tech savvy, but because they have iPads at home and they came in to the branch to speak to a person.
Technology in a branch of the future is driven by purpose – and one of the main purposes today is to break down barriers between customers and staff and facilitate more natural interactions.
Barriers like a teller station can be replaced by laptops that enable staff to serve customers in a variety of locations and engage in personal conversations without the tools to facilitate transactions standing between them.
Great technological innovation doesn’t stand out, but rather blends into the background enabling the branch experience to shine.
Building a Consistent and Relatable Brand Experience
Customers should feel a sense of familiarity and comfort when they walk into a branch, even if their only experience so far has been through digital channels. Much like your app should be intuitive, there shouldn’t be any confusion about what to do and where to go. No arrow stickers on the floor, no cattle rope, no queues. The layout should be natural and logical.
This shift from digital to physical shouldn’t be jarring, but rather a smooth transition emphasizing that digital and physical aren’t separate channels but two parts of a holistic brand experience.
The atmosphere of the branch should be welcoming and put customers at ease, and it should bring your brand to life in a way that shows rather than tells who you are. It should emphasize the idea that this is a human space where they come to have valuable conversations with your staff rather than simply a building that they go to for depositing checks.
Don’t Neglect the Employee Experience
The employee experience is one of the most important aspects of a branch because it is your employees who are delivering the branch experience.
People are now more than ever seeking out careers where they feel valued and proud of the work they do, and where they have an opportunity to make a positive impact on the world. This issue comes alive in the quality of the branch space, and in how it empowers employees to resolve issues and help customer wherever they can and supports their mental and physical wellbeing.
The removal of teller lines represents a symbolic shift in the employee-customer relationship. As the barriers are broken down the employee takes a larger role in not just completing transactions but in delivering on the mission of your institution. The greater responsibility placed on them, and the larger impact they have on customers’ financial lives, gives more significance and meaning to their careers.
Employee’s sense of pride in their work is also shaped by the branch environment. The aesthetics of a branch aren’t just for the benefit of members and branding. Think about your social media feeds; how many work photos do you see with cube farms and drop ceilings making up the background? Probably not many. But there is a steady stream of modern Instagram-worthy workplace photos. The same idea translates to the branch, where the look and feel of the space shapes an employee’s identity in their role. Employees take more pride in themselves and their work when they work in a branch that looks great and demonstrates the credit union’s recognition of their worth and value.
Location is More Important than Ever
Choosing the best location for your next branch carries significant risk – will it perform to expectations or will it cost you money?
Market analytics have become a critical tool in the branch of the future, helping institutions plan their branch networks strategies with the confidence that comes from machine learning driven insights backed by comprehensive data.
Momentum has been helping the most forward-thinking banks and credit unions plan and execute effective branch network strategies backed by Momentum Location Intelligence. Momentum uses the most sophisticated location analytics available to help institutions realize their full market potential by optimizing their networks, building strategies to enter new markets, and maximizing their branch networks’ financial performance.
Find Your Branch of the Future
Ready to take the next step and find your branch of the future? Get started with our latest Momentum Branch Ideabook, covering the issues discussed here and more with examples and images. And book a conversation with Momentum today!