Branch Rebrands & Conversions After M&A

Branch Conversions at a Glance:

• Aligning branch health insights with market analytics enables financial institutions to allocate resources toward locations with the highest growth potential
• The branch exterior is a brand’s beacon, how a bank attracts and welcomes customers
• The branch interior is a brand’s experience, where bankers interact with people
• If a merger is not understood, a bank risks not only attrition of staff but the loss of customers

With continuing momentum in bank mergers and acquisitions, a growing number of financial institutions will find themselves needing to update and align their newly acquired branches. Given the level of complexity in the banking environment, the branch rebranding process necessitates a strategic, organized, and cohesive approach. In the Financial Brand article Avoiding Branch Rebranding Headaches in Mergers and Acquisitions, Adrenaline’s President and CEO Gina Bleedorn and Chief Delivery Officer Frank Beardsworth share their insights on branch rebranding and why it’s so critical to get it right.

As more and more consumers do their everyday transactions via digital channels, it’s tempting to think that this migration takes the pressure of the branch experience. But we find the opposite is true. As a primary channel for acquisition, the branch channel is consumers’ #1 consideration for starting a new primary banking relationship. The reality is that consumers open more accounts in person at the branch, have lower account attrition, and those accounts are worth more than those opened digitally.

Investment Tiers

Most of the decisions about branch conversion will ultimately be determined by how much budget financial institutions are prepared to invest. “It’s easy to underestimate the costs,” says Bleedorn, “because such combinations affect everything, including the size of the branch network, planning and redesign, staffing, marketing and continuous communications.” Hundreds of unique brand assets to align adds to complexity and cost. Further, because each branch comes in at a different current-state, a branch-by-branch analysis is a requisite first step. 

“It doesn’t help to put a new program in place in a very tired and dingy looking branch,” according to Beardsworth. Matching information on branch health with data and market analytics will help financial institutions devote more budget and resources in branches that have the greatest growth opportunity. “Following site surveys and interviews with branch personnel, branches can be sorted in three distinct classes, each with a different budget range.” These ranges include: 

1) Rebranding and Retrofit – Branch with optimal market opportunity showing the most growth potential would range from $100,000 to $110,000

2) Middle-Tier Branch – Moderate opportunities and strategic location would have a budget range between $50,000 to $80,000

3) Basic Upgrade –Branch that’s remaining open but isn’t primed for growth would have a budget range from $30,000 to $50,000

Outside-In

Taking an outside-in approach, each branch serves as a billboard for the new brand, bringing people inside where their experience comes to life. “Your branch exterior is your beacon, your advertising,” according to Bleedorn. “It’s your face forward to the community and it is your reason to attract anyone. But your interior is your experience… where your bankers are actually interacting with people.” Inside the branch, there are branded elements to address – including brand colors, carpet, interior signage, digital displays, teller backgrounds and more.

In an interview for their branch rebranding article, Adrenaline’s client Peter Powell of First Horizon Bank is interviewed by The Financial Brand and describes the process of branch conversion in their Florida Flagship. “We want to be respectful to both legacy brands,” Powell says. “Maintaining aspects of the overall banking center design that clients’ value is extremely important to us. The priorities include the application of First Horizon elements that we’ve used previously but also making sure we’re honoring where we’ve been in the past while looking to the future with the two organizations combined into one.”

Cultural Considerations

Ultimately, the most beautiful branch conversion in the world won’t matter if people aren’t part of the process. The Financial Brand puts it this way: “If staff doesn’t have a full understanding of what the merger means for them and why it’s a good thing, that ambiguity will be conveyed to customers.” Bleedorn drives the point home: “If the merger is not truly understood by your people you risk not only attrition of staff but the loss of customers.” Aligning staff to the new brand will help define the new brand’s success in the market. Having a sense of ownership is critical to their ability to deliver on the new brand promise and the best experience a branch can deliver.

To learn more about successful strategies for branch conversions and refreshes, 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.