A BALANCING ACT
Service and Consumer Experience
As the physical footprint of a retail branch becomes smaller, the digital footprint increases, and branding needs to get bolder. Retail branches currently average around 2,500 sq. ft.—down from what typically used to be 4,000 to 5,000 sq. ft. What once held bulky teller lines, large vaults, and spacious private offices is now housing open, interactive retail spaces with teller pods, gathering areas, flexible workspaces, education centers and technologydriven meeting rooms.
According to a recent Global Banking Consumer Study, only 30% of respondents rate their main bank’s consumer service as “excellent.” Digital-only banks and other businesses that operate outside of the financial industry have augmented the competition more than ever. Financial Institutions are reinventing the branch experience by adding personalization and designing spaces that foster conversations in order to get a better understanding of the consumer’s goals, and offering a more holistic experience that combines a variety of products and services to meet all their financial needs.
Branding Speaks for You
With less space it is more important than ever to create an environment that is eye-catching from the inside out. Your building is your greatest marketing tool—from graphics and wayfinding signage to wall coverings, door branding and interior design elements like furniture, flooring, and paint. Your branch is where your consumer becomes immersed in your brand and trust is built.
T
he branch landscape continues to evolve at a rapid pace. In the last 10 years, U.S. banks have closed 17% of their branches. While branches continue to close, the demand for technology continues to grow. Though there has been a decline in day-to-day traffic, two-thirds of consumers still see value in a brick-and-mortar branch. This shift in consumer banking provides financial institutions with a golden opportunity to reinvent the retail experience and better connect with consumers. Currently, more than 71% of consumers are visiting branches, mainly for problem solving and to seek education and financial advice. Your branch can best serve in this role by incorporating technology, personalized service and improving products and services to deepen the relationship with consumers.
CHOOSING THE RIGHT PARTNER Though it might seem tempting to oversee the project and juggle local contractors to keep costs down, this practice has repeatedly proven itself to be the fastest and easiest way to add time and expenses to your project. It is important to choose a partner you can trust. Your best
By Jim Caliendo, President & CEO, PWCampbell option is a full-service firm employing experts, not only in design-build but also in the financial industry. A firm that will manage your project from conceptual design through construction and make recommendations on branding and technology. Seeking a partner who will collaborate with you and listen to your needs while adhering to your budgetary and time constraints is the winning combination for success.
CREATING A STRATEGY Deciding where to build is only part of the equation. Knowing what to build is equally important. In today’s environment where one size no longer fits all, having a branch strategy is key. An expansion strategy will ensure that you are taking your retail branch network in the right direction by analyzing targeted markets based on marketability. It is important to find a location that is easy to access and convenient, while considering key data like demographics, traffic flows, competition, and buildability options. And, while looking at new additions to your retail network, be sure to consider market penetration options for existing branches. Optimizing your existing network creates efficiencies, detects areas for improvement and is sure to increase the value of your overall branch system.
Don’t Forget Technology
Branches today manage more complex financial matters, and cater to a multigenerational consumer base. They need to lead the way providing financial education and advice — all within a smaller footprint. A well-branded network will get consumers through the door, but having the appropriate in-branch technology will keep them coming back. Technology is ingrained in everyday life, so making it part of the branch experience only makes sense. From iPads and touchscreens to digital signage and video walls, today’s consumers expect a certain level of interactivity and self-service to make the banking experience convenient and customizable to their needs. Gone are the days of printed brochures and marketing materials that were impossible to track or keep compliant.
GIVE THEM WHAT THEY WANT Consumers are craving a balance between convenient locations, in-branch technology, and personalized service to complement the online experience and help them navigate their financial journey with confidence. Whether opening new locations or optimizing existing ones, having a strategy to ensure your retail branch network is poised to provide a memorable consumer experience that meets their needs is key to remaining competitive. James G. Caliendo is a former bank executive and now President & CEO at the 113 year old design-build and retail services firm. In the past 20 years alone, under Jim’s direction, PWCampbell has worked with over 500 financial institutions influencing millions of square feet of retail and operational space to create engaging, impactful, and scalable solutions for every sized facility project.