HOLLYWOOD, Calif.–Does the branch still matter? It most definitely does, stressed one person, but it matters for different reasons.
Anthony Burnett of Level5 told the California and Nevada leagues’ REACH Conference here that no aspect of credit union operations has transformed more in the past two decades than the branch.
“Now, branches are set up to create a different experience, with much of it influenced by retail,” said Burnett. “We have seen credit unions transforming through the branch and technology, cash automation and other solutions,” said Burnett. “We are also now seeing credit unions taking a very different approach to business by transforming their headquarters buildings.”
The Change Creator
Why is all this changing? According to Burnett, much has to do with the introduction of the iPhone and the smartphones that followed, which created a “different level of convenience for all consumers.”
“For credit unions, we now have this challenge in front of us to create this omni-channel experience,” he said. “So, convenience has been so radically changed that when you ask consumers today what is the primary way you want to react with your PFI, they point to their mobile device. That device is the most convenient branch in the world. So how does the physical branch fit? Today, we have other factors beyond convenience.”
While recent research shows six in 10 new account relationships start online, Burnett said the “amazing thing” is seven out of 10 new accounts will be in a branch at some point in their journey. That’s especially true for Millennials, he added, who have shown they actually like branches rather than shun them.
“Why do people bypass the most convenient branch in the word? Because that’s where your staff is located; that’s the one differentiator,” Burnett said. “Consumers of financial services bypass convenience for access to people. If that’s the case, it would make sense as an industry to optimize that experience as much as we can.”
Three-Step Process
According to Burnett, there is a three-step process for optimizing the branch network.
- Function. “Why function first? If the branch is primarily about people, then the first questions to ask are who are the people in our branch, why are they there, and what are they doing?”
- Experience. “What is the experience that members have when they come to your branch? What is the entry experience? It can be dramatic as Disneyworld, or as mundane as your local library. Think about your branches as zones of activities, beginning with the entry experience. What comes next is often the greeter who triages why they are there. From there we get into the branding piece.”
- Technology. “The integration of technology is the third leg of the stool.”