Technology and the Branch of the Future
- Banks
- Branch Transformation
- Credit Union
- Data
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Leveraging Critical Credit Union Data Components for Smart Geographic Expansion
In the ever-evolving landscape of data collection in the credit union and financial service industries, the race to capture new markets and enhance member experience has intensified. Basically, you have to keep up.
Furthermore, with the growing influence of technology, interwoven with strategy consulting, site selection, branch design, and building, this bevy of tools has become vital for financial institutions to stay competitive and thrive and meet members’ needs properly.
In this post, we will explore six crucial data components that inform the branch pro forma; as well as and aid in the geographic expansion plans of credit unions, enabling them to build the branch fit for the growth of the future.
1. Loans and Deposits Forecasting: Unearthing the Elbow Room
Understanding Market Viability
When considering expansion geographies and specific trade areas, it is essential to assess the availability of loans and deposits in that market before making a final decision on branch real estate site selection.
This crucial data component helps credit unions determine the “elbow room” or growth potential in a given area, identifying if there are still untapped opportunities or if the market is already saturated and unsuitable for expansion.
2. Competitive Analysis: Identifying Opportunities Amidst Competition
Beyond the Elbow Room
When entering a new retail banking market requires a thorough competitive analysis.
Accordingly, financial institutions must gauge the opportunities for a new entrant and assess how well they can compete against existing players. This involves understanding whether competitors dominate or outspend potential newcomers, ultimately determining if the market is viable for a new branch.
3. Consumer Overlays: Tapping into Existing Consumer Bases
Building on Existing Clientele
Another critical factor in successful geographic expansion is identifying how many existing consumers reside in the expansion geography.
A pre-built consumer base can significantly impact the success of a new branch, providing a strong foundation for growth and member engagement.
4. Demographic Tapestry Profiles: Recognizing Shifting Consumer Demographics
Mapping Consumer Demographics
Even if credit unions know their target consumers, they must ensure that these consumers reside in the expansion area.
Demographic tapestry profiles allow you to understand the overlays of the existing consumer base in potential expansion geographies. Consequently, this helps to avoid potential mismatches between target demographics and location.
5. Market Potential Indices: Measuring Consumer Behavior
Predicting Consumer Behaviors
Market Potential Indices (MPI) provide valuable insights into the likelihood of adults in a specific geographic area exhibiting purchase behaviors aligned with the banking products and services offered by the credit union.
This data component aids in assessing the market’s demand for the institution’s offerings or those they plan to introduce.
6. 4 Square Quadrant: Mapping Branch Performance and Market Potential
Visualizing Success
The 4 Square Quadrant, a critical component of the LEVEL5 Branch Market Analysis engine, provides a comprehensive reading of proposed branches in a given trade area.
By scatter-plotting the branches based on performance and market potential, financial institutions can effectively gauge which locations are likely to thrive and which ones may under-perform.
Paving the Way for the Credit Union Branch of Tomorrow
In the dynamic world of financial institutions, leveraging technology to analyze critical data components is paramount for making informed decisions regarding geographic expansion and long-term growth.
Credit Union strategy consulting, site selection, and branch design and building can be significantly enhanced with the insights drawn from loans and deposits forecasting, competitive analysis, consumer overlays, demographic tapestry profiles, market potential indices, and the 4 Square Quadrant. Armed with these data-driven tools, financial institutions can confidently build the branch of the future, positioning themselves for success in a competitive landscape.
For expert guidance and assistance in harnessing the power of these data components for your institution’s growth and expansion plans, do not hesitate to contact LEVEL5, the industry leader in strategy consulting, site selection, design, and construction for credit unions and banks.
Let us help you create the branch of tomorrow that sets new standards and meets your members needs.
Belvoir Branch Renovation
- Announcements
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Belvoir Federal Unveils Branch Renovation with New Technology
Woodbridge, VA, October 22, 2014 – Belvoir Federal Credit Union, $310 Million in assets, celebrated the unveiling of its largest branch at their “Renovation Celebration” event on October 21, 2014.
The credit union hosted a day of celebrations to showcase the high-tech branch and new capabilities offered to members, including remote teller stations, instant cash recyclers, multiple teller pods for transactions, and an open office concept
to promote more communication between members and frontline employees.
In addition to the modern technology in the renovation, developed by the LEVEL5 the design-build team, the branch offers iPads for members to use while in the branch, a café setting, and media walls for flat screen televisions to highlight the latest news, weather, and credit union information.
Patricia Kimmel, CEO/President of Belvoir Federal Credit Union, stated, “We are investing in our members and credit union’s future by designing a branch that provides the latest and most efficient technology. Our branch offers a new and personalized experience for members when they come in to see their financial partner.”
The “Renovation Celebration” event was well attended by a steady flow of members coming to visit the new branch. Throughout the day, Belvoir Federal offered members coffee and donuts in the morning, a hot dog and chip lunch with music by B101.5, and cake in the afternoon. The credit union also hosted a private event for all staff, board members, and distinguished personnel from Ft. Belvoir to attend a special after hours ribbon cutting and hors d’oeuvres event.
Dottye Bunch, Belvoir Federal’s Facilities/Project Manager, worked closely with LEVEL5 to complete Belvoir Federal’s state of the art redesign. Dottye stated, “It’s been a pleasure working with the LEVEL5 design-build team on this remodel. They listened to what we wanted for our members and built a branch that is beautiful and offers our members a unique experience.”
To view more project images, click HERE!