So if the bank of the future is really the “bank of now”, what does that mean? It means that you have to take action now, today, to create a banking environment that’s capable of taking on the challenges of a rapidly changing marketplace.

1. branch of the
Jim VanderMale
future
Executive Vice President, Retail Market Strategy
It’s a concept that’s as elusive as the horizon. While
everyone talks about it as though we’ll someday arrive in the future
and poof, there it’ll be, the reality is that the bank of the future is
already here. It’s the bank of today, tomorrow, 20 years from now,
an evolutionary result of technology, customer need, and industry
circumstance.
So if the bank of the future is really the
“bank of now” . . . what does that mean?
It means you can’t just sit on the sidelines and wait for a
transformation to happen. You have to take action now, today,
to create a banking environment that’s capable of taking on the
challenges of a rapidly changing marketplace. I’m not suggesting
change for the sake of change - but change for the sake of
survival.

2. Having been in the financial services industry for time to understand that consumers’ needs were
30 years - twenty of them as a banker myself, I’ve changing— and they took action to capitalize on
seen what works and what doesn’t. History and those changes.
experience have shown me a clear vision of what
the “bank of now” should be. Bankers would be wise to follow suit, because the
plain fact is, customers’ needs and expectations of
bank branches have also changed dramatically in the
changing customer needs past decade. Not only have technological advances
provided customers with a tremendous amount of
changing branch needs convenience, the customer base is more diverse
than it’s ever been: 75 million Millenials rival the 80
Bigger just doesn’t mean better anymore. Look at million Baby Boomers also in the market. To remain
technology, for example. Communication devices successful, it will be critical for branch design and
are continuing to shrink in size, yet are increasing strategy to adapt to these changes
productivity at an amazing rate. The reason for this
isn’t just because of advances in technology, it’s In order to decrease costs and increase profits,
also because smart, insightful companies took the banks must address customers’ needs.
The good news is that despite all
of these changes, particularly the
6 reasons why increased number of channels
available, the branch is still the #1
smaller is smarter
preference… for certain kinds
of transactions. That’s the key
differentiation in today’s market
compared to 10 years ago. Gone
1 Smaller branches offer the same market penetration
as their larger counterparts.
are the days when teller lines were
jam-packed on Fridays because
everyone was cashing their payroll
2 You can potentially build 2 smaller branches
for the price of one big branch.
checks. Advances in technology
such as ATMs, online banking, and
mobile banking, have driven these
3 Site selection is easier with smaller branches
because less land is needed.
types of transaction-based needs
out of the branch. Customers now
largely visit a branch for one simple
4 Smaller branches can be purposely reason: to talk to someone. Maybe
designed to enhance visibility. they want advice, to apply for a loan,
or they have a complex transaction
5 Smaller branches can be strategically located to conduct. Whatever the reason,
they made a concerted effort to talk
where a larger branch could not.
to a person- and the branch had
better be ready to meet that need.
6 Less staff and lower operating costs =
quicker return on investment. This paradigm shift represents a
huge opportunity for banks. If the
Branch of the future

3. majority of actual transactions are being handled in high
other channels, why continue to build big, spacious,
flagship-style branches? What is the need for a
TELLER TRANSACTION
12-station teller-line and an expansive, multi-laned
drive through if customers are just going to go
online or visit an ATM to handle their transactions? A
full-service branch that meets the needs of today’s
customers simply won’t require those features.
They don’t meet the needs of today’s customer and
are frankly an unnecessary waste of money in most
cases.
I strongly believe that given the right operating low
model, a completely self-sufficient, full-service
branch can be delivered in a 1,000 – 1,500 SF 1980’s 2010
footprint. SALES & SERVICE
Industry research supports this claim. A recent
study produced by the Deloitte Center for Banking Technology
Solutions suggests that “U.S. branch changes While the branch experience needs to be
over the next 10 years will likely center around 5 predominantly about creating personal relationships,
main areas: branch redesign to help customers technology can and should play a huge role in
better navigate the outlet; operating model and facilitating the experience. Allowing customers to
staffing changes to improve customer service by leverage technology in the branch, such as self-
engaging the customer in new ways; technology service kiosks, discover walls or touch tables, can
enhancements to improve the customer experience increase cross-selling opportunities significantly.
and increase cost productivity; enhanced network
management to increase customer convenience
while improving flexibility and cost-effectiveness
and better connecting the community and the AppropriATe STAffing
customer to create greater brand loyalty.” Smaller branches require less staff to operate – but
So if smaller branch size is the critical first step, a that smaller staff can only be efficient with proper
thoughtful, holistic design and staffing strategy is training. Arm your staff with the tools they need to
the necessary finishing touch. The environment is handle all customer issues and involve them in the
where the magic happens, so while a smaller branch branch design so they understand the purposes of
size alone might offer significant returns in saved the changes and can be effective brand advocates.
land, construction, and operating costs (in addition
to being far more environmentally friendly), those
benefits are negated if the interior of the branch and TAilored SuiTe of producTS & ServiceS
the staff aren’t given appropriate consideration.
Having a wide range of offerings isn’t useful if your
A high-performing retail environment that’s customers don’t care about most of them. Know
effectively designed to influence consumer buying what your customers want, understand what they
behavior will rely on several key factors: need, and offer them just that.

4. STreAmlined communicATion STrATegy
Jim VanderMale is Executive Vice
Just as customers don’t care about products and President of Retail Market Strategy at
services that aren’t relevant to them– they can’t BrandPartners, Inc.
care about relevant offerings that they don’t
With 20 years in the banking industry
understand. Keep messaging clean, simple, and plus a decade of experience developing
appropriate and customers will respond. strategic branding programs for the
branch environment, Jim is uniquely
qualified to help clients understand the value of using
integrated retail communications to increase profitability.
effecTive BrAnching STrATegy
A key member of the BrandPartners senior management
Smaller branches can fit in a lot of places their
team, Jim is not only responsible for the direction and
larger counterparts cannot. Thinking outside the management of BrandPartners’ business development
norm and considering non-traditional locations will and retail accounts groups, he is also instrumental in
open up a lot of opportunities. Nothing replaces developing and maintaining strategic partnerships with
sound market intelligence, however, so understand national clients to ensure seamless execution of their
every nuance of any new expansion market before programs.
making a commitment.
For more than two decades, BrandPartners’ award-
winning retail environments have helped companies
The bottom line is simple: realize their brand potential by building profitable retail
networks.
for banks to remain competitive, they need
to think smarter and smaller, capitalizing on BrandPartners’ experienced professionals work with you
significant industry changes in customer to positively influence consumer-buying behavior whether
you need —
need.
- a retail prototype design
the “bank of now” should be cost-effective - retail office architectural plans and construction
and efficient, playing an effective, tactical - merger-and-acquisition implementation
role in the grand scheme of multi-channel - integration of business lines at the branch
- in-store banking solutions
management, which offers a multitude of - communication messaging and point-of-sale
benefits for institutions brave enough to - brand and identity development
chart a new course.
More than two-thirds of the nation’s top financial
institutions have trusted BrandPartners, as have hundreds
of community banks and credit unions. In fact,
BrandPartners has partnered with more than 2,000
financial services companies and touched more than
36,000 branches worldwide.
The company is headquartered in Rochester, N.H. with
offices in Seattle, Phoenix, Jackson, Milwaukee, and
Hartford.
Additional information can be found at:
www.brandpartners.com
Branch of the future