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5 Key 2022 Planning Strategies

Oct 5, 2021Growth

As the calendar has now rolled into October, you undoubtedly have been called into the first of several meetings to discuss your strategies and goals for next year.

It’s planning and budget season.

How will you gain more members/customers and grow relationships with existing ones next year? Well, now’s the time to answer these questions.

Growth-minded credit union and community bank leaders need to make vital decisions to propel business growth in 2022 and an effective plan takes into account the changing nature of banking.

Our team, here at LEVEL5, lives and breathes financial institution growth every day, so we’re sharing our 5 key 2022 planning strategies for credit unions and community banks.

#1 Analyze Your Branch Network

Before you can begin to think about organic growth with net new customers in net new areas, you need to ensure the current branches and the customers they serve are performing.

Initially, you must to take a holistic assessment of your entire branch network.

Do you have a current and accurate understanding of loan and deposit performances per branch?

Which demographics make up your clientele at each branch and have they changed?

Do you have the right number of branches within a certain market to benefit from the network effect?

And most importantly, which branches are performing at forecast, and which ones are not?

Knowing what you’re working with is the foundation for making correct growth decisions for next year. In order to know, your finger needs to be on the heartbeat of the entire organization.

#2 Optimize Your Branch Network

Once you’ve captured a clear picture of your network, it’s time for action.

While some branches may be thriving, others may not be performing. In order to optimize, it may be crucial to consider closing or relocating them before they can take more toll on your financial health than they already have.

It’s best to get ahead of loss by data-driven analysis to determine what needs to be done. Once a non-performing branch is closed, you can move those resources into a new branch that will turn positive numbers within a healthier market.

Identify geographic markets where your optimal demographic is growing. With the right branch in the right place, you’re armed to expand your network in an impactful way. Informed consulting services tell you which branches to close, keep, remodel, and/or relocate.

#3 Boost the Retail Experience

Branches are still at the forefront of customer engagement and retention, but due in part to digital channels, their role has become less transactional and more about onboarding and advisory sessions.

The Financial Brand publication notes that bolstering a credit union or local bank standing as a trusted advisory community institution helps to keep them competitive against mega retail banks. From our experience, we couldn’t agree more.

Therefore, the branch should be where new customers come to open accounts and clientele visit to seek advice from a real person, making the functional experience of your spaces paramount. After all, the effort you put into your environment speaks to the effort you’ll put into your banking relationships.

All great branches should include at a minimum:

An inviting entrance, opening into a welcoming space that facilitates trust with staff
High quality branding, amenities, and materials in line with your organization’s culture
Informal advisory areas
Private advisory areas
Comfortable furniture
Well-lighted spaces

Our ReFi program helps you assess clientele experience in your current branches with actionable ways to remodel, re-inventing an inviting and engaging branch experience.

#4 Secure Your Budget

Planning is key, but it’s all backed up by the ability to properly secure funds for future projects.

Make sure to properly communicate all future fund needs to all stakeholders and decision-makers. In addition, make them aware of the purpose behind each project so proper decisions can be made now and no surprises pop-up later on.

A well-defined plan, with actionable and attainable goals will be the projects awarded the proper funds for execution.

#5 Prepare An Employee Training Plan

Ensure your tellers and bankers on the ground are up-to-speed on the ultimate purpose of the branch. They need to know that they’re on the front lines of fostering relationships and growth.

While critical functions such as onboarding, executing transactions and product cross-selling are key to any in-branch function, there is always a gap in the training where a newly built (or remodeled) branch and its core strategic function are lost on the staff that occupy it.

Ensure that your branch staff not only know how to perform the duties defined in their job descriptions, but also how to do it in the space you’ve planned and built.

To learn more about the 5 key strategies outlined above and how LEVEL5 can assist you with your strategic assessments and branch build projects, Contact Us today. We’re ready to help you meet your 2022 goals.

5 Key 2022 Planning Strategies

#1 Analyze Your Branch Network

#2 Optimize Your Branch Network

#3 Boost the Retail Experience

#4 Secure Your Budget

#5 Prepare An Employee Training Plan

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