What's new in branch design?

Digital banking is very important, but the branch still has a role to play, and it would be a major mistake to ignore the changes happening within this space. A panel at the Bank Customer Experience Summit, held from Sept. 12 to 13 in Charlotte, North Carolina, took a look at what's new in branch design.

Brad Browder, CEO of Htx Services LLC, moderated the discussion with Alex DeJesus, VP of member experience, Addition Financial, Amber LeGrett, SVP of business strategies and initiatives at Bank of America and Katie Meyers, VP and client experience officer for Manasquan Bank.

History

Browder began the presentation by pointing out the history of bank branches. The first bank was opened in the 1400s and the teller counter in the 1600s in Italy, which is still used today to some degree.

"Technology has changed, but branch design hasn't," Browder said. Meanwhile, he pointed out that "70% of transactions are done now through the ATM," but branch design hasn't caught up.

When asked how they had innovated branches, Meyers said, "We wanted to remove barriers, emotional, intellectual and physical. We introduced (the) universal banking pod station. They have high and low settings so clients can stand and sit. It's confidential. We do know your name at Masaquan Bank but with high tech mentality."

Conversion

LeGrett said that many clients complained about the long teller lines and trying to get advice in areas where others could hear them. In response, Bank of America began converting its teller windows into offices.

"We have iPads where we can have conversations for quick transactions. They can go in and out or set up an appointment," LeGrett said.

DeJesus said that they made efforts to renovate branches but COVID-19 hit and made technology more important.

"Not every cookie cutter approach can work," DeJesus said. "You have to be careful in this ever changing economic world we are in."

Meyers pointed out that it's important to serve clients even without appointments since if customers come into the bank, they are coming in to get guidance.

LeGrett agreed, stating that Bank of America has free time slots so that walk-ins can talk to a banker.

Digital role

When asked about what role digital plays in this, Meyers said Manasquan Bank has digital expert bankers in the branch who are well trained on the bank's mobile and digital platforms so they can assist senior citizens and others who need help with the platforms.

While it is true that younger generations want digital only experiences, DeJesus argued that they also will need to talk to a banker, especially with stressful financial decisions like purchasing a home or car.

"You can't get advice on buying home or car digitally. You need in-person advice," DeJesus said. "The digital experience doesn't understand the fear of making that big decision. It's a balancing act."

Employees

When talking about employees, the panelists said it is important to keep them well trained as universal bankers.

"We have relationship managers as bankers," LeGrett said. "They show people how to do things in the lobby and transition conversation to other banking topics, like purchasing a car."

Meyers said it's important to keep employees a part of the overall conversation when it comes to training.

DeJesus said that his bank utilizes debriefing after training to figure out what they could have done better and to help employees promote themselves more effectively.

Smaller footprint?

Lastly, the panelists spoke about the trend of smaller branch footprints. They see this trend as depending on a number of factors.

LeGrett, for example, said that Bank of America isn't really making branches smaller but combining some branches into one larger space.

DeJesus said banks need to consider if their customers are going to be okay with those smaller spaces before they create them.

"You need a digital space and a face-to-face space. Finding that balance is going to be different for every institution. You have to understand your customers," he said.

"We want to be big enough to matter, small enough to care," Meyers said.