Mazuma Branch of the Future
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Mazuma’s Olathe Branch Dismantles Traditional Banking
Mazuma Credit Union (Overland Park, KS) has chosen LEVEL5 to design-build their new Branch of the Future. The branch will be located in Olathe, KS near the Menards, and will represent the Credit Union’s newest approach to branch banking.
“We are very excited to be awarded this project,” said David Lapp, Senior Project Manager for LEVEL5. “The Mazuma Team is listening to their membership and responding with a brand-new member experience using the latest in-branch technologies.”
The branch’s retail lobby and drive-up will utilize Interactive Teller Machine (ITM) technology. Using in-branch automation via ITMs enables Mazuma team members to focus on relationship building and not simply transactions. Furthermore, using ITMs in the drive-up allow for longer hours to the community beyond traditional branch hours.
“For the Olathe Branch, we wanted to dismantle traditional branch culture and service models,” said Brandon Michaels, President/CEO of Mazuma. “For years, routine transactions have left the branch, but not the opportunity to serve members in ways that best benefit them.”
“The Olathe Branch is our latest move toward what our membership wants – convenience with maximum engagement. We worked with LEVEL5 for our headquarters facility built around a culture experience, so when it came time for the Olathe Branch opportunity they were our clear choice. Their expertise with credit unions and in-branch technology are big value-adds for our team.”
The Olathe Branch design is near completion and the project will break ground before the end of 2017. Construction of the branch will conclude in the Spring of 2018. The Olathe Branch is the fourth project LEVEL5 and Mazuma have partnered together.
The branch continues to thrive because consumers highly value human interactions. However, locating a branch is anything, but simple. A new approach to site selection is a key component to take branching from Good to Great.
Financial Resources FCU | Micro Branch of the Future
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Financial Resources FCU “Micro” Branch of the Future
Much is written about the “Branch of Future”, but a version of it may be in operation, today in New Jersey. LEVEL5 is proud to announce Financial Resources FCU’s new micro branch in Jersey City, NJ. This start-of-the-art branch focuses on automation and brand to serve its consumers and community.
The 1,100-square foot facility is located in the Newport Tower on Washington Boulevard near the subway. The branch is powered by NCR’s Interactive Teller technology, which allows the Credit Union to operate the facility 24-hours a day. NCR’s Interactive Teller machines (ITMs) provide the normal operation of an ATM, but with a video option that allows consumers to interact with a live representative.
“Advancements in retail technology, like ITMs, are allowing the community-based financial institution (FI) to compete, at scale with much larger FIs,” said Mike Colvin, Executive Vice President of LEVEL5. “Financial Resources has taken the next leap in consumer experience with this new branch allowing convenience, service and brand in a much smaller footprint.”
The branch’s two ITMs are connected via video back to the Credit Union’s call center. This allows the physical branch to operate with fewer staff, while consumers, using the ITMs, interact with live Financial Resources’ member reps in the call center. The in-branch staff, no longer encumbered by teller fixtures and balancing cash, are focused on service and sales to meet the needs of its consumers. In summary, routine transactions are handled more efficiently through technology, allowing for more complex interactions with branch staff.
Frank Almeida, COO of Financial Resources added, “Though routine banking needs are now being automated, we have found the human component to still be a primary need of our members.” Mr. Almeida continued, “The value of the branch and our use of ITMs is not to replace the importance of the human interaction, but to enhance convenience outside normal hours, and have the ability to provide depth for all their financial needs.”
The branch’s focus on convenience is also evidenced by the use of two-way video in the conference room allowing consumer-access to Credit Union specialist at other locations. Furthermore, the Financial Resource FCU brand is on full display throughout the space inclusive of video displays to educate consumers on how the Credit Union can integrate with their daily lives.
Mr. Almeida offered, “We chose LEVEL5 for our newest branch because they understand consumer experience, new branch technologies, and are experts in bringing together all of the components in the design-build of financial facilities.”
Smaller branches are not just a trend they are a new reality. Check out this new freestanding branch that is heavy on automation in a small footprint.
Branch Transformation | An Omni-Channel Experience
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- Branch Transformation
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A new distribution network emerges…Omni-Channel
Today’s financial services environment is characterized by change. The drivers of change include consumers, technology, and delivery systems. Moreover, financial institutions must change with these elements to remain relevant and competitive in today’s omni-channel economy. In addition, balancing service to younger and older segments and their preferences for how service is delivered will define success for the financial institution in the future – and keep in mind, that the customer is the judge of service quality.
Location, location, location
One of the biggest questions that we hear is, “How do branches maintain their relevance in an increasingly technological age?” Surveys underscore that 60 – 80% of new banking relationships are established through the branch network. Furthermore, a recent Ernst & Young study says 65% of sales occur in a physical location i.e. a branch. However, once the relationships are made, regardless of the financial institution’s size, customers migrate through a variety of delivery channels, with each customer seeking his or her most comfortable and effective method of interacting with the institution.
So…how does the branch fit today and tomorrow?
Omni-Channel Delivery – defined
What we are describing is the distribution system that financial institutions will employ tomorrow (that is, if they haven’t already started) – the omni-channel distribution network. This network combines automated, physical, and virtual channels into a flexible, and consistent branded customer experience.
Furthermore, the physical branch synchronizes these channels by establishing customer expectations and the institution’s brand image in the market.
It’s always on. The automated channel includes the institution’s ATMs and Interactive Teller Machines (ITMs). These channels are often self-service or assisted service and can operate 24/7/365, locally. The virtual channels include the phone system, web-based, and mobile platforms. These channels may be self-service or offer some level of assistance and operate 24/7/365…globally.
Evolution of Physical Channels
In the omni-channel network, the physical channel contributes to service density by providing visibility, accessibility, and the institution’s full range of products and services. As always, convenience is a driver in the consumer’s choice of financial institution. Remember…65% of consumer sales occur in a physical branch. So, convenience is aligned with a habitual consumer commuting pattern between where individuals live, work, and shop.
The branch must find its purpose. As the retail branch evolves, it will be developed with a specific target market and “business case” as the motivation. Branches will have a reduced footprint, scaled to meet market and customer demands and styled to match those same preferences. Space within the branch will be open and flexible to facilitate change as needed to respond to changing market conditions.
The four types of branches
The branch of the future (or today) will be scaled and styled to accomplish several purposes. Many markets will include a cornerstone branch. This office is usually a large-format facility staffed by universal bankers and subject matter experts, and additional amenities. This office is the institution’s “statement” in the marketplace. (Here are some examples.)
Community branches are smaller than the cornerstone offices, but offer a similar level of service. They are focused on customer service and sales, staffed by universal bankers, and showcase the institution’s technology and automation. They offer the ability to schedule subject matter experts either by appointment of through an automated or a virtual connection. (Here are some examples.)
Micro branches are often found in storefront locations or leased space. These offices can be transaction focused, but are staffed with fewer employees and more technology to boost efficiency. They are heavy on technology, automation, and branding. Micro branches rely on automated channels (ATMs, ITMS, etc.) to provide most of the transactional capacity, with employees available for sales and service as needed. (Here are some examples.)
Finally, the self service branch is fully automated and heavily branded and has no employees. You can imagine a full service ATM installation or, more likely in today’s economy, an ITM creating an outpost of service for customers with extended hours capability.
Conclusion: Branches still matter
Although the role of the branch is changing, retail branches remain an important element in an institution’s omni-channel delivery strategy. As financial institutions evaluate their current networks or contemplate new branches for branch transformation, they must be keenly aware of the market they intend to serve and the business case that supports the decision.
In the future, branches will be smaller and will focus on customer service and sale of more sophisticated products and services. The branch will work in a hub and spoke relationship with a variety of other delivery channels to offer the customer a wide variety of access points to the institution to deepen wallet share and long term stickiness with the institution.
In the omni-channel network, the branch plays a different and even more valuable role than ever – providing connection with the customer and community.
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