Article Tools
Research Reports
Most Viewed
CU Snapshot
| 2Q '09 | 1Q '09 | |
| # of CUs | 7,982 | 7,998 |
| Members (millions) | 91.9 | 91.7 |
| Total Assets ($ billions) | 871.8 | 867.4 |
| Total Savings ($ billions) | 741.8 | 737.2 |
| Net Cap. /Assets | 9.6% | 9.6% |
| Loans to Savings | 78.5% | 78.8% |
| Loan Delinq. | 1.60% | 1.54% |
Watch Out For These Branch-Building Blunders
Common design errors jeopardize successful branch development and profitable branch operation.
Online banking has not made the branch office obsolete. In fact, the Federal Deposit Insurance Corp. reports that the number of bank offices has grown 8% in the past 10 years, and the average number of branches per institution has increased from six to 9.5. Credit union branches increased more than 800 to over 10,500 between 2003 and 2004—a sizeable 8% increase, according to CUNA's 2005-2006 CU Environmental Scan.
Many experts, such as Eduardo Alvarez, managing director of strategy and design services for BrandPartner, believe branches must be more than convenient—it needs to be inviting. And like other retailers, financial institutions can attract customers with additional products and services to obtain more of their business. Some of these common design errors, identified by Alvarez in a recent issue of USBanker, jeopardize successful branch development and profitable branch operation:
Working without a model. Everyone on a design team must understand the financial institution's business and operational model. All key internal decision-makers must agree on this model, be it providing quick service, building relationships over time, or emphasizing transaction migration versus teller interaction. Determine how effectively the brand expresses across the organization and the links between branch architecture and brand strategy.
Assuming one product fits all markets. A branch needs to connect with the local community. This goes beyond customizing a product to a population segment or translating collateral. Financially astute branches examine every touch point and avoid a one-style-fits-all approach. A branch that goes after small businesses in one sector differs from one that pursues seniors in another sector.
Overlooking new communications technologies. Two-dimensional displays and paper brochures no longer suffice in this increasingly technological retail world. Many customers use computers, cell phones, and PDAs. When they walk into their branch, they want to feel as if their financial institution is technologically advanced. Strategically placed plasma or LED screens provide customers with content from several sources: cable television, the Internet, and advertising and marketing campaigns. But before placing digital messages throughout a branch, define goals for information to be provided, customer education, and customer entertainment to avoid overload.
Skipping branding homework. Finding a branch's positioning ‘voice' begins with identifying current practices and determining where changes will allow the institution to use a unified voice and reinforce its unique brand. Analyze how to make a consistent brand message resonate with a local or niche population. Common visual and verbal languages are part of a consistent, branded customer experience, while images, materials, and messages may appeal to different customer groups and geographies. A successful brand will evoke an association, an emotion, and an expectation in the consumer's mind.
Ignoring integration. Build upon powerful external advertising and direct-mail campaigns by translating brand at the retail level through signage, communications, and even staff behavior and appearance. Develop a strategy that ties back to the business model and ensures a consistent voice, streamlines messaging inside the branch, integrates human interaction, and positions the branch as a 3-D billboard.
Subscribe
Tools
Hot Topics
FYI
