Five Strategies for Predictable Core Deposit Growth

Categories:

• Consulting
• Credit Union
• Data
• Retail
• Services

This article originally appeared on CUInsight.com.

In today’s financial landscape, core deposits are the lifeblood of your credit union. 

Interest rates seem to have stabilized, but the combination of the rise of interest rates and inflationary pressures in the last few years has returned us to a place where the best way to grow your credit union is by growing core deposits. 

While you may have embraced that reality in theory, many credit union leadership teams struggle to find and implement practical strategies that will help you compete and win in your market.

Strategy 1: Focus on advisory services over transactional.

Focus on building relationships and providing thoughtful financial advice to members. Big bank conglomerates may beat you on digital tools, but there’s no reason they should beat you on delivering advisory services that increase your members’ financial wellness. 

To do this well, you need to build trust, provide excellent customer service, and give members solutions to the practical financial problems they face. 

In some ways, “advisory over transactional” could be the category that all of the strategies below fall underneath, but it’s important enough that it needs to be at the top of the list.

Strategy 2: Target Gen Z.

Gen Z was born into a world with digital advancement in hyper-speed, but also a world of financial turbulence. The result is a generation that may seem like something of a paradox—digital natives who are more financially conservative. 

By providing financial education and enablement, you have the chance to bring this generation into their fold as loyal members and low-cost depositors.

Consider offering educational classes for the community about topics like living on a budget, getting your first mortgage, and understanding different saving and investing options. You’ll build trust and give members the tools they need to thrive financially.

Strategy 3: Reinvent branches.

Have you noticed how often restaurants update and remodel their locations? Usually about every 5-7 years. And it’s not a waste of an investment, either. Studies show that remodeled restaurant locations usually see sales increases between 15-40%. 

If updating the space where people go for a chicken sandwich makes that much of a difference, how do you think people view a branch that hasn’t been updated in 10+ years?

Make the strategic investment to update your spaces—not just with a coat of fresh paint and new carpet (although you probably need those as well). Reimagine your space to facilitate a more advisory approach instead of putting your staff behind a huge teller wall. 

You’ll be surprised at how a refreshed and reinvented space attracts new members.

Strategy 4: Highlight local connections.

Here’s another area where credit unions can run circles around the big bank conglomerates. Make strategic investments in your community and don’t be shy about spreading the word about the good work you’re doing. 

Many people don’t understand that credit unions are fundamentally different from banks in that they don’t exist to benefit a group of unknown shareholders. As nonprofits, credit unions should invest time, energy, and resources to help people understand how they make communities better by keeping revenues in the community. 

Strategy 5: Gather and share member testimonials. 

Putting systems in place to consistently gather and share member testimonials is one of the most important things you can do from a marketing perspective. 

People are bombarded everyday with literally thousands of marketing messages. Online reviews play a shocking role in the decisions people make every day about which products and services they choose. 

In fact, partially due to the overwhelming amount of marketing messages consumers receive, they overwhelmingly trust what others say about you over what you say about you. 

You can regularly request that satisfied members post a Google review of your credit union (there are automated services that will make this fairly easy that are surprisingly affordable). 

And, you should consistently ask members for their feedback so you can both improve the services you offer and share their positive testimonials through all of your communication channels. 

Far too many credit union executives drastically underestimate the power of member reviews and testimonials. Many of your members will be happy to give a review or testimonial—they just need to be asked. 

More Intense Competition for Core Deposits is On the Horizon. Are You Ready?

It may go without saying, but we feel the need to say it anyway. Greater competition for core deposits is coming soon—in fact, it’s already here! 

If you’re not feeling a sense of urgency to find and implement effective strategies to grow your core deposits in a predictable way in the future, you haven’t been paying attention the last few years. 

Now is the time to take bold action. Even if you can’t do all of the strategies we’ve articulated here, choose one or two and get going now. Then, over time, implement as many as you can. That’s a plan for predictable long-term growth.

Contact Us for Credit Union Growth Strategy

Reach out to our expert credit union consulting and branch optimization team today for help with targeting and reaching new members – we’ve guided credit unions for more than 20 years with a reliable data-driven approach to identify member demographics and optimal ways to foster their engagement.

Targeting Gen Z for Credit Union Growth

Categories:

• Branch Transformation
• Credit Union
• Retail
• Services

Generation Z has grown up in times of financial uncertainty and especially these days, they are still feeling the impact of Covid-19 on their income. How can you serve Gen Z well in order to help your credit union growth strategy?

Now more than ever, Gen Z prioritizes becoming financially savvy and your credit union should be equipped to provide them with the solutions they’re looking for, helping you create loyal members for a lifetime.  

Here are our expert tips on targeting engagement with Gen Z for credit union growth.

Centering Accessibility

Thanks to exponential tech advancements, Gen Z grew up in an “on-demand” environment and they’re used to being able to access anyone through phone, email, text, and chat. 

Your credit union must not only have the technology in place to address these needs, but must also clearly convey the “on the go” convenience of this accessibility to your Gen Z customers via your marketing strategy to help differentiate yourself from competitors.  

Providing Gen Z the flexibility to access your products and services when they want and how they want to across various platforms goes a long way in building loyalty among this generation. 

Delivering Cutting-Edge Technology

On top of accessibility via tech, Gen Z also expects the latest-and-greatest retail banking technology hardware itself. 

Having grown up with some of the best technology on the market such as smartphones, laptops, and iPads, Gen Z often expects the world around them, including their banking institution, to provide modern technology for speed and seamlessness in their interactions.  

For financial institutions, a retail branch experience complete with modern displays, tablets, or self-service kiosks positions you as an up-to-date institution that’s ready to meet the fast-paced needs of modern members. 

It may go without saying, but we’re going to say it anyway. Connect with Gen Z by creating a smartphone app. Creating an app for your credit union will make your services available even when you’re closed. When many credit unions were closed during the pandemic, members relied on their app for information and access to banking services. 

A modern, user-friendly app guarantees a good experience for members outside of the branch. 

Promoting Your Debit Card

Many consumers seek sound financial advice from a trusted source, their banking institution. Most people that are a part of Generation Z are now directly affected by these unfamiliar times—which makes them want to become more financially educated to achieve their goals. They will look to their credit union to educate them.  

Promoting your debit card with Gen Z members will help them understand how to budget their money for their future. As a credit union, it’s not only important to encourage debit card use among this generation, but also budgeting to ensure that they’re on the right track to being financially responsible. 

By providing relevant financial advice, you form a connection that will continue to grow over time. And that’s a great way to leverage engagement with Gen Z for your credit union growth strategy. 

Contact Us for Credit Union Growth Strategy

Reach out to our expert credit union consulting and branch optimization team today for help with targeting and reaching new members – we’ve guided credit unions for more than 20 years with a reliable data-driven approach to identify member demographics and optimal ways to foster their engagement.

How to Grow Core Deposits for Your Credit Union

Categories:

• Branch Transformation
• Credit Union
• Retail
• Services

Past financial trends shape how credit unions grow in the present and future and the tumultuous ups and downs of the economy, world events, and interest rates over the past 20+ years has created an environment today where it’s crucial for many institutions to reexamine their strategy to ensure long-term stability through growing core deposits.

It’s too early to say exactly what the “new normal” will look like for local credit unions, but we can project some trends with confidence.

• Rising rates will put a spotlight on core deposits and other low-cost funding sources.
• Higher rates may dampen loan demand in the short to intermediate term.
• There will always be demand for loans for essential purchases like cars and homes.
• Local financial institutions may need to refocus their strategies in light of diminished loan demand.

So where do you start? We’ve helped credit unions meet their loan-to-deposit ratio goals for over 20 years, so we’ll begin with some tried-and-true methodS.

Three Critical Core Deposit Growth Strategies

Utilize these strategies in day-to-day interactions and for your long-term institutional strategy to bolster core deposit growth for your credit union. 

1 – Outstanding Customer Service

As a credit union, outstanding customer service helps you stand out from competition. Great customer service is about treating members with respect, foreseeing member questions and concerns, providing knowledgeable solutions, and clear communication.

Whether it’s a representative from the call center or in-branch visit, members rely on credit union staff to guide them through financial challenges and connect them efficiently with services that properly meet their needs so make it paramount to train your staff on delivering the best member experience possible.   

2 – Focus Locally

Unlike big national banks, credit unions are often more community-based and integrated and that can be quite an advantage! Having a real connection to the community that you serve helps establish a more personal working ecosystem, custom-tailored to the markets you serve. Strategically focus on meeting your local member’s needs and showcase your commitment to those around you. This will work wonders in helping generate your deposits.   

3 – Personalize In-Branch Experiences

As effective as modern credit union technology is, nothing compares to a personal human-to-human connection, which is one reason why the branch will never go away. Members will always appreciate personalized financial guidance from staff in a warm, welcoming, professional environment.

• Do you staff greet members upon their entrance?
• Do you have comfortable furniture in the lobby space for folks to wait on?
• Is your branch design well-lit and spacious?

Being able to provide friendly, in-person retail banking experiences improves member participation, trust and long-term loyalty to your institution, so make sure your branches reflect the personal attention your institution prides itself on providing. 

Growth Strategy & Consulting for Credit Unions

The financial landscape is constantly changing and it’s essential that growth-minded credit unions continue to evolve whilst also relying on time-tested strategies.

Putting members first by maintaining accessibility, providing a personal connection, and enhancing member services will help you grow core-deposits and long-lasting members. 

Here at LEVEL5 we can assist you in creating a credit union growth strategy that sets your institution up for reliable growth for years to come.

For over two decades, we have created solutions for credit unions that cater to each organization’s unique needs, that’s why our clients grow 38% faster than their peers on average!

Core Deposit Growth Strategy: Part 2

Categories:

• Branch Transformation
• Consulting
• Credit Union
• Retail

What are the growing performance trends for Credit Unions?

Analyzing Credit Union Performance Trends: A Decade in Review

Previously in this article series, Core Deposit Growth Strategy: Part 1, we looked back over a period of 20 plus years to learn the history of what led the financial services industry to today’s environment. Now, we’ll zoom our lens further in to the past 10 years in particular, focusing on key credit union performance trends, and how recent large-scale change in the world affects your institution’s next stage of growth.

Peer Group Analysis: How Credit Union Asset Size Influences Growth

Deposit growth trends

Loan growth trends

Loan-to-Deposit Ratio: A Key Indicator of Credit Union Performance

Exploring Net Interest Margin Trends in the Credit Union Sector

As you know, similar to the loan to deposit ratio, net interest margin is a key metric that tracks the combined effectiveness of the institution’s deposit-gathering and loan-granting activities.

Loan and deposit rates are both set by the individual institution but are also constrained by the Federal Reserve’s activity too as competitive response. But, as you also know, loan and deposit volumes are influenced not only by pricing, but also by an institution’s strategic day-to-day and long-term performance in marketing, reputation, member service, and convenience.

With this in mind, this is a great place to reflect and ask yourself “what can my institution do next to achieve our net interest margin goals?”

Navigating the “New Normal”: Challenges and Strategies for Credit Unions

The takeaway from of all this is that it’s too soon to tell exactly what the “new normal” will look like, but we can certainly use our experience and assessment to confidently project:

>Higher rates will raise the cost of funds, putting the spotlight on core deposits and other low-cost deposits.

>Higher rates may also dampen loan demand, at least in the short to intermediate term (sooner or later, cars have to be replaced, families need to move, and unexpected life events happen!).

Previously, some institutions have created high performance lending teams over the low-interest rate era, but diminished loan demand in the present and near future may constitute a refocusing of your strategy.

So, what can be done?

Our next and final post in this series will examine some strategies to pursue core deposits as one way of managing the “new normal” and boosting your net interest margin.

Leveraging Technology and Strategic Planning for Credit Union Success

In this dynamic landscape, credit unions must adapt to changing member expectations and leverage technology to deliver exceptional retail bank customer experiences. Embracing data-driven retail credit union consulting and strategic planning can position your credit union to thrive in the evolving market.

At LEVEL5, we understand the unique challenges faced by credit unions and offer expert guidance in credit union strategy and planning. Our 20 years of experience as pioneers in modern bank design and retail bank consulting, enables us to deliver innovative solutions tailored to your institution’s needs.

Whether you’re exploring credit union or bank branch construction, credit union or bank branch design, or branch transformation, our national design build services ensure a seamless process from start to finish. We specialize in strategic planning for credit unions, market analysis, and designing the branch of the future.

Check out the other posts in this series

Growing Core Deposits Blog Series Part 3 ➝

Growing Core Deposits Blog Series Part 1 ➝

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Contact Level5 For Help with Your Core Deposit Growth Strategy

Contact us today to learn more about how LEVEL5 can help you navigate the changing landscape of the financial industry and achieve your growth objectives. Let’s build the future together.

Core Deposit Growth Strategy: Part 1

Categories:

• Consulting
• Credit Union
• Retail

Understanding Historic Trends is Critical for developing & executing strategy for core deposits growth

This is part 1 of a 3-part series to help credit unions develop effective, long-term strategies to grow core deposits.

What Was the Financial Industry seeing in historic trends for core deposits in January 2000 and How Has it Affected Today?

Let’s set the stage by thinking back to January 1, 2000. We all awoke with a wary eye. Had our efforts to ensure all our electronics were Y2K compliant succeeded? Or had civilization imploded at the stroke of midnight due to a glitch that the earliest programmers never envisioned? The glow from our bedside alarm clocks gave us a glimmer of hope. When our trusty coffee makers bubbled to life, we began to rest assured that life would go on indeed.

When we were in our “just glad to be alive” moment, we couldn’t imagine the changes that the next twenty-plus years held for our economy and the financial services industry.

Strategies for the Future of Financial Services Should be Informed by the Past

Then, like a lightning strike, the housing bubble burst, and we found ourselves in the “Great Recession.”

This resulted in a protracted period of unbelievably low rates. Again (and predictably) home prices started to rise, and rates were adjusted upward. Then came COVID, and the rates were pushed back down to their historic lows.

Eventually and thankfully, the pandemic subsided, but we were faced with “new normal” conditions—just to name a few examples, remote work became more of the norm, retirement/resignations spiked, and a blistering housing market ensued. In response to this “new normal” the Federal Reserve instituted fast-paced, significant rate hikes to the point that nothing about our economy seems certain.

How Did We Get Here?

Our Team Helps You with Core Deposit Growth Strategy in Today’s Market

Given the current economic landscape, now is certainly the time to reexamine your credit union’s strategic planning for the long-term. In many ways, the conditions that threaten the industry are more of a “return to normal” adjustment than a doomsday scenario.

To find solutions to guide us into the future, we need to understand more of the industry’s historic response to similar conditions and return to some tried-and-true long-term strategies for sustainable growth.

What are those strategies? That’s what we’ve covered in the next parts of this series.

Growing Core Deposits Blog Series Part 2 ➝

Growing Core Deposits Blog Series Part 3 ➝

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Have questions today? Please contact us! For over 2 decades, LEVEL5 has developed winning credit union growth strategies through every ebb and flow of the economic landscape, so you can certainly say we know a thing or two about charting a course for a healthy future.

3 Reasons to LAUNCH: Alignment

Categories:

• Announcements
• Banks
• Branch Transformation
• Credit Union
• Leadership
• Retail

We Have Liftoff

LEVEL5 has officially launched our LAUNCH Program.

This program has been specifically designed for the Credit Union and Bank executive who has a clear vision for the next 3-5 years, but is struggling to execute to these goals.

In this article, we discuss the second phase of our LAUNCH Program.

Phase II: Alignment

Phase I was the Discover phase, where we got to know each other, but most importantly, discussed current and future states, with goals and objectives laid out, but also discussing what’s been getting in the way of successfully executing to these goals.

In Phase II, we discuss the Alignment of your goals to our services. You did most of the talking in Phase I, now it’s our turn.

We will take the information we discussed, and add insights. We’ll present initial data to add value to our conversations, while also laying down a firm roadmap on how to break through the roadblocks and initiate plans to help you achieve your goals.

Based on relevancy of the need, we’ll recommend paths forward relating to Market Analysis as part of our Strategy service, as well as Site Selection to ensure geographic analysis aligns with available land and buildings in your desired Trade Areas.

Technology is a key strategic component in the branch. We’ll discuss options relating to the right “Tech Fit” across your current and/or future locations.

And finally, we’ll walk you through the Design and Build phases, speaking to budgets and timelines.

When relevant, we’ll also discuss previous efforts in the form of Case Studies, or share insights into current jobs that have relevance to your scenario.

Why LAUNCH At All?

The LEVEL5 LAUNCH Program follows a methodical, yet casual approach to uncovering the critical needs of your Financial Institution. Through a series of easy discussions, our team will be able to capture your goals, but also understand what is getting in the way of you achieving them.

From there, we’ll be able to make actionable recommendations on how to execute to these goals.

To learn more about our LAUNCH Program, and to schedule your first Discover call, Contact Us today to get going.

3 Reasons to LAUNCH: Discover

Categories:

• Announcements
• Banks
• Branch Transformation
• Consulting
• Credit Union
• Leadership
• Retail
• Services

We Have Liftoff

LEVEL5 is excited to help your FI with your growth initiatives in 2023 and beyond with our LAUNCH Program.

We’ve built this phased approach to assessing and launching your growth strategy around the methodical steps aimed at uncovering the challenges getting in the way of your Credit Union or Bank achieving its objectives and goals.

Phase I: Discover

The first phase in. our LAUNCH Program is called “Discover” – when our relationship will begin with a casual conversation, no more than 30-minutes, where we simply have a chat.

In this discussion, we’ll go over our services and background – but this phase is frankly about you. We’ll want to know about your FI’s history, your place and positioning in the communities you serve, and most importantly, current state versus desired state.

Your “Current State” is where you are today – number of branches, trade areas, assets, branch type mix, and of course, your member/customer base.

Your “Desired State” is where you want to be – expansion plans, asset goals over the next 3-5 years, thoughts on branch types, hub & spoke models, as well as any M&A’s that may be in play.

From here we’ll start to discuss next steps. Most importantly, we’ll need to uncover what is getting in the way of you executing and achieving your goals. That bridge from here to there is typically full of roadblocks, but that’s where LEVEL5 comes in.

Why LAUNCH At All?

The LEVEL5 LAUNCH Program follows a methodical, yet casual approach to uncovering the critical needs of your Financial Institution. Through a series of easy discussions, our team will be able to capture your goals, but also understand what is getting in the way of you achieving them.

From there, we’ll be able to move into the other phases of the LAUNCH Program and make actionable recommendations on how to execute to these goals.

To learn more about our LAUNCH Program, and to schedule your first “Discover” call, contact us today to get going.

national vs local general contractors

Categories:

• Banks
• Branch Transformation
• Credit Union
• Retail
• Services

When you’re a community based credit union or bank, and you’re looking ahead to your next branch construction project, the question of whether to hire a national or local general contractor is a worthwhile topic.

In one regard, you want to keep dollars local – after all, you pride yourself on being a “local” financial institution.

On the other hand, you want to keep costs down, and want a GC who can save you money, while also managing budgets and schedules.

Can you have it both ways?

In short – yes.  

In this article, we’ll take a full look into the advantages of partnering with an experienced national Design-Build firm while also utilizing expert local Subcontractor talent within your institution’s local markets. 

A National Design-Build Contractor Brings National strength and scale

More Experience 

A national General Contractor has most likely completed a higher volume of projects, on a larger scale, compared to a local General Contractor. This means a national General Contractor has seen more and done more overall, bringing a broader range of expertise and can offer inputs from a larger team to advise on your success.   

But just because a national GC may have their HQ in a different state, doesn’t mean there is not local representation. LEVEL5 always places a full-time, seasoned superintendent on each project, dedicated to working with Subcontractors and seeing it through to completion.

More Buying Power & STRONGER Relationships

A local General Contractor certainly won’t have the national buying power and broader relationships that allow a national General Contractor to pass on substantial cost savings to their client. 

Because LEVEL5 has multiple projects at one time across the nation, we are able to consolidate purchases for materials, whether it be lumber, steel, even furniture.

And to be clear, LEVEL5 always works with as many local Subcontractors as possible. We have a robust national database of contractors across all trades in nearly every market. We’re also glad to work with your preferred local Subcontractors.

Due to our licensing and work history in all 48 contiguous states, we’re able to pull from a preferred list of competitive and trustworthy local Subcontractors within your area. 

However, when there’s an opportunity to benefit our client with more savings and optimized delivery, our national frame allows us to tap into partners from other parts of the country accordingly. 

For example, we always ensure that Subcontractors will actually have the availability to work on your project.  

Sometimes the provider right in your own city may not have capacity and are unable to allocate resources a few miles down the road. With our network, we can resolve this issue ahead of time, sometimes securing an available sub who may not be local, but who is definitely experienced and available.  

This sometimes translates into cost savings for you, too! In some cases, we may know a sub elsewhere who can work on your project for a substantially lower price than similar local Subcontractors are offering.  

Specialized In Your Vertical  

Many local General Contractors serve a wide array of industries…this isn’t inherently bad, but pertinent to note that they likely don’t have a comprehensive understanding of success for your particular vertical’s needs. They may be good at construction, but they are not EXPERTS in building a branch.  

In LEVEL5‘s case, we have specifically provided our services to financial institutions nationwide for nearly 20 years.   

With a committed team who has managed over $1 Billion in successful construction of branches, operations centers, and call centers, holistic, practical know-how in building for credit unions and community banks comes with the territory. 

Keeping Your Subcontractor Dollars Local Has Huge Benefits

Reduce Your Costs

First off, you’re likely going to keep your costs lower by utilizing local Subcontractors. 

Subcontractors near your construction site area are closer to the end of the supply chain for needed materials, equipment, and parts.  

That generally means (but not always) lower prices for sourcing to your project if you were to compare against sourcing from Subcontractors who are further away from you.

Think of the costs needed for mobilizing a large backhoe, it’s going to be far cheaper moving it 10 miles down the road when compared to moving it from Florida to Texas.

LEVEL5 realizes this cost value that local Subcontractors bring, which is why as mentioned earlier, we try to hire them locally as much as possible, unless we see an opportunity where a non-local Subcontractor can benefit you more! 

Be a True, Known Community Player  

Beyond reducing your spending, keeping a majority of labor dollars local is a great Public Relations spotlight. You’re investing right back into your community, with the same folks who may even me your clientele.  

Local workers on the job will spread the news of your soon-to-be branch. Families, friends, neighbors, word travels fast and when the general community realizes you’re hiring local Subcontractor businesses, it will only help solidify your standing as an organization truly dedicated to its people. Community members will take this to heart and it may even push them to consider opening an account with you. 

Closer By, Quicker Response

If needed, local subcontractors can return quickly to your project site to resolve any issues or to coordinate and communicate with other Subcontractors since they’re right in the area nearby.  

This would present obvious logistical problems if you were working with a sub from out of state or across the country.  

For all our projects, we utilize only local Electrical, HVAC, and Plumbing Subcontractors specifically for this reason.  

Imagine your branch’s heating system failing during mid-winter in Wisconsin…you’re going to want the familiar team within arm’s reach so that repairs can be made ASAP and operations can return to normal.  

National + Local = A Win For Your Project 

With the expansive reach, experience, and oversight delivered by a national General Contractor working in tandem with the local network of skilled, responsive Subcontractors, your project is set up to be completed with total success. 

Contact us for your next project and get the best of both worlds.  

5 Key Elements to Consider For Your Prototype

Categories:

• Banks
• Branch Transformation
• Credit Union
• Retail

Any branch project should always start with, if not be greatly informed by, a solid strategy.

As you begin the efforts of considering and planning a new prototype branch (whether it be with LEVEL5 or you go it alone), we present to you 5 key elements for you to consider as you form a final strategy.

1. Prioritize Customer Experience

Customer experience in the branch is paramount. That’s why so many branches are moving past the traditional, stuffy teller line-oriented layouts and replacing them with a more open floor concept design. These designs are considered commonplace by now and foster open communication.   

Technology like Assisted Self-Service machines give your clientele the power to make transactions themselves and helps them avoid standing in frustrating lines. 

But don’t forget the small things! Comfortable seating in a waiting area with coffee at the ready is still a great way to deliver on the customer experience. 

2. Design For Your Brand 

Your brand helps you relate to your members, so tailor the design to appeal to the right demographics and to properly portray your organization’s values.  

The branch and its design are the physical manifestations of your brand. It should portray your mission and values, while also reflecting your overall member/customer base, even at the trade area level.

LEVEL5 has worked with many FI’s who operate both in a rural and urban settings. While there is an overall branch prototype, the design is specific to the neighborhood – and its clientele.

3. Integrate Technology According To Your Needs

Studies illustrate that the majority of consumers enjoy using touch-screen interfaces and automated tellers while at their branch. These technologies reduce wait times and free up your employees so they can assist others or accomplish other tasks.  

But the latest and greatest may not always fit your brand, per se.  

Again, decisions should be based on your members’ unique needs, so always consider that beforehand.  

For example, many of your clientele may be senior citizens who would prefer a more personal approach. If that’s the case, a blend of the old and new may be worthwhile.  

4. Use Natural Elements

The days of the deep, dark wooden panels are gone.

Branch designs have moved to using more natural elements. Not only is this design aesthetic more common, it is also more pleasing to the visitor.

It reflects your brand better, and provides a better branch experience. 

5. Make Your Exterior Shine

There are 2 major elements when considering your exterior: 

1. Brand – Does the exterior design reflect your brand well
2. Billboard – Your branch is an advertisement. Make it work for you 24/7

Your branch is your member’s “banking home” so have the overall design reflect that mentality.

You know your members best so how can the branch reflect them? 

A modern branch can have large windows, metal siding and technology.

A traditional branch has deep woods, brick and maybe even columns.

There is not necessarily a right or wrong approach, but rather the branch, and the strategy to designing the prototype needs to reflect your brand and your clientele.

Contact our team now to discuss your new branch prototype. For nearly 20 years we’ve utilized best design build practices to help a multitude of clients create and implement effective, beautiful branch templates.  

Designing Your Branch Prototype

Categories:

• Banks
• Branch Transformation
• Credit Union
• Retail

Your branch is the physical manifestation of your institution, oftentimes a critical beacon for attracting new members in the market and in growing the client relationships you already have. That’s why it’s so important to make sure you get branching right. 

With your branch space, you’re providing a place where people can interact with an actual person to provide solutions. It’s the arena for primarily opening accounts, having questions answered or taking care of larger or more complex transactions. Digital channels simply cannot provide the desired human element, or solve the complex issues your clients face every day.

When looking to reinvent your brand, sometimes the branch, and a new prototype at that, is what is needed to begin anew. 

Why? Because a new prototype branch universally establishes and dictates your brand and culture. It should provide the functionality and services needed to fit the changing requirements of your modern clientele.  

In fact, almost all of LEVEL5‘s projects involve a new branch prototype. Wise financial institution leaders truly see the value of it. 

In this article, we’ll cover the purpose and successful implementation of a prototype and what it means for you in 2022 and beyond.

When Do You Need A Branch Prototype? How Is It Developed?

You need a branch prototype when you want an effective, uniformed, comprehensive way to optimize your entire branch network. Notice we said your entire branch network, not just the future locations that are built to turn heads in newer markets.  

Once your critical branch elements have been identified and put into the design, they can be translated into all of your existing branch spaces too. 

This is monumentally important to point out since many credit union and community banks often look up one day and find themselves with multiple locations having a stale, unengaging ambience to them. A prototype helps with needed rejuvenation as well as future builds.   

So how is it developed? 

While putting your prototype together, we work closely with you and key stakeholders through an in-depth Programming and Visioning phase to identify and deeply understand your: 

• Needs 
• Goals
• Retail Strategies 
• Influences 
• Brand Elements 

We then synthesize all of this into a design with our experienced Design team.

Once finished, your prototype branch will include the basic structural outlines, preferred technology, design choices, banking equipment, brand deployments and iconic elements, narrowing down to aspects like your furniture style, tile selections, and carpet color.  

Tweak Your PROTOTYPE to Fit Varying Needs

Having an excellent branch template makes it more convenient to proliferate uniformed locations in a myriad ways, allowing you to minimize time and cost spent re-designing as the prototype can simply be adjusted to fit.  

Your standard-sized floorplan can be seamlessly translated into micro branches, stand-alone kiosks in smaller towns or even for your regional offices or Ops Center, keeping your design components and member experiences in lock-step with your strategy. 

Contact our team now to discuss your new branch prototype. For nearly 20 years, we’ve utilized best design build practices to help a multitude of clients create and implement effective, beautiful branch templates.