On-demand webinar from Adrenaline’s BankSpaces keynote session
As PNC, Chase, and Bank of America continue their investment in the branch channel, new studies reinforce just how much the branch means. For consumers it’s presence that matters – as 7 out of 10 want a branch within 15 minutes of them. For institutions it’s profitability that matters – as half of account originations take place in person at the branch. While competition heats up, we’ve entered what Gina Bleedorn, President & CEO of Adrenaline, calls the “Great Branch Race” for financial institutions – a sprint to capture more deposits than their competition and a marathon to serve customers in evolving spaces that are more strategic and more connected than ever before.
Not only are more banking relationships started at the branch, the branch experience creates growth opportunity and drives greater loyalty at the same time. Data from Curinos shows that the branch channel outperforms digital channels in bank sales – both in balance size and relationship retention. And while the branch channel requires both upfront and ongoing investment to continually deliver meaningful experiences, the long-term benefit for banks is clear. In her BankSpaces keynote, Gina makes the case that growth is no longer just about branch proliferation – it’s about purpose.
“In this branch race, everyone is sprinting to market and opening branches, which is great for momentum,” according to Gina. “But there is a problem here. Not everyone is running the race the right way, and I would say that not everyone is even running in the right race.” That’s because data shows that 56% of regional bank branch deployments fail to reach profitability. For community institutions, consistent market outperformance is possible, but holistic transformative approaches are required to get there. So, while the race is on, not every institution is competing as capably as they could. What’s missing isn’t ambition – it’s alignment.
At the heart of ineffective network optimization efforts is what Gina calls a “Great Disconnection,” which is a breakdown in the internal coordination of the branch transformation process. In many banks, siloed departments like analytics, real estate, marketing, and retail may each make significant contributions to branch initiatives, but without coordinated ownership or shared goals, the execution becomes disjointed. Data is gathered, but it’s not translated into action. Design intent is articulated, but it’s lost in rollouts. Strategic decisions are made, but they’re eroded by poor implementation at scale.
These invisible handoffs create gaps – between analytics and strategy, strategy and design, and design and execution – and it’s in these gaps that most banks lose their advantage. “I’m talking today about the danger with the invisible gaps and things getting lost in the middle,” according to Gina. “Because the great branch race is not won at the starting blocks or the finish line, it’s actually won in the middle at the handoffs.” And when you don’t have a smooth handoff, that’s where you lose ground.” Activation and consistency are key to successful handoffs in branch transformation.
The first and most fundamental gap exists between analytics and strategy. While most banks and credit unions have access to solid market data, few activate the data in a meaningful way to inform decisions on which format to build, where to locate the branch, and how much to invest. Once strategic decisions are made, design is tasked with bringing them to life. Too often, however, branches are rolled out using outdated templates that no longer reflect an institution’s true intent. Design must be focused with form following function and aligned not only with institutional goals but with consumer expectations.
With a branch purpose that has moved beyond a place for transactions, the evolved experience is a front door to the brand, a destination for advice, a source of human connection, and a community hub. This evolution demands a flexible, multiformat approach to branch delivery. Whether a bank seeks to drive loyalty, efficiency, cross-sell, or acquisition, branch design must support the institutional goals and do so across the entire network, not just in flagship locations. Gina says to ask, “What function needs to be focused on and at what scale up and down in these different archetypal models of delivery?”
Often the most damaging gap emerges during the final step in branch transformation. Even the best branch strategy and most thoughtful design can devolve if the branch implementation isn’t rigorously rolled out. When marketing, retail, and facilities aren’t aligned, value-based decisions or personal preferences can sometimes dilute the original vision. To close this gap, execution must be scalable, replicable, and intentional. The banks that will win the “Great Branch Race” aren’t the ones that build the fastest or spend the most. They’re the ones that move forward together. As Gina concluded in her keynote session: “If everyone and everything moves forward together, success takes care of itself.”
To learn more about strategies for network transformation to maximize the value of the branch, or to speak with one of Adrenaline’s experts, contact us today.
Adrenaline is an end-to-end brand experience company serving the financial industry. We move brands and businesses ahead by delivering on every aspect of their experience across digital and physical channels, from strategy through implementation. Our multi-disciplinary team works with leadership to advise on purpose, position, culture, and retail growth strategies. We create brands people love and engage audiences from employees to customers with story-led design and insights-driven marketing; and we design and build transformative brand experiences across branch networks, leading the construction and implementation of physical spaces that drive business advantage and make the brand experience real.
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