Growing New Branches

CUNA News Now reported today that "43% of [credit union and bank members] said they prefer financial institutions to model their environment after retailers such as high-end coffee shops, and apparel stores known for their top-notch service and personal shoppers." (more on the survey is here.)

I was thinking about this issue recently because my credit union, Great Wisconsin Credit Union, just remodeled the branch I frequent on Yellowstone Dr. They went from a pretty standard bank model to a welcoming and open alternative. You notice the difference immediately after walking in - high ceilings, natural wood and light, soft colors, free coffee (fresh!), bookshelf with financial books you can borrow (Suze Orman and the likes, etc), flowing waterfall by the teller station, and toys for the kids (as I noted in a post earlier, they've also got snacks for the kids). Nice digs on top of good service and products is a big plus. 

But does it matter to young adults? We know that they still value ATMs and branches over online banking. That may change in the future with the growth of online and mobile banking, but for now it makes sense to pay attention.

Models for Inspiration

Look at ING Direct's Cafe model -  A review of one in Philadelphia says "this coffee club is, like Urban Outfitters, an op/pop proposition amid tonier locales; a caffeinated respite that actually serves public function. ING serves a social need — like the Palm Pilot and the cell phone — by allowing users on the go to surf the Internet as well as do their banking or check stock numbers." Serves a social need. Wow. Does your credit union do that?

I also got a few great ideas in a white paper this year from the CUNA OpSS Council. Some examples in the white paper include:

• Planning to “build green” at University Federal Credit Union in Austin, Texas University will open its first “green” branch in October 2008 and plans to build all future branches with a “green” design that decreases energy use, recycles “gray” water that comes from sinks and showers (but never toilets) for landscaping, and reduces the impact on the environment. 
• Spurring growth by introducing “dialogue banking” with teller pods at Innovations Federal Credit Union [check out their website! It's cool.] in Panama City, Florida. Innovations’ leaders credit the dialogue banking approach with helping the credit union grow from assets of $81 million in 2004 to $112 million at year-end 2007.
• Refining the use of remote teller systems at APGFCU in Aberdeen, Maryland. APGFCU shares its experiences on when and where to install remote tellers effectively.

Do a Google search for "Innovative Credit Union Branch" for even more examples and pictures.

Bottom Line

Given a choice between a financial institution with a hip branch or the traditional model, which one does an 18-to-30 year-old pick? I don't think it's a deal breaker - instead your new branch enhances your standing to current and potential members as part of your overall image and value.