Banks and credit unions merge with or acquire other financial institutions for several strategic and operational reasons, often aiming to strengthen their position in a competitive financial market. This practice, however, is a common reason why branch networks become piecemeal experiences with lackluster brand consistency.
According to the NCUA, Credit Unions have consistently decreased year-over-year by around 3%, largely due to mergers. In fact, between Q3 2023 and Q3 2024, the number of credit unions decreased by 145. Similarly, the FDIC reports that insured banks also decreased by 97 within the same time period.
As long as the trend with M&A continues, it’s easy to see how branches will continue to have disconnected experiences with other locations. From outdated technology to dull and unbranded spaces, these gaps can leave consumers feeling undervalued, which impacts brand loyalty.
In an era where technology and intimate consumer relationships play a pivotal role in shaping expectations, it’s not enough to update a single branch. Financial institutions must create experiential synergy—aligning technology, design, and service across all branches in their network to provide a cohesive experience.
This begs the question; how should a financial institution bridge these gaps in a way that is budget conscious and keeps operational down-time at a minimum? And, how do you know if the outcome is worth the investment? In this article, we uncover strategies to transform your disconnected branches into a cohesive, forward-thinking network that meets the demands of today’s consumers.
ASSESSING BRANCH REINVESTMENT ROI
While recent trends may encourage financial institutions to continue building more branches in order to capture low-cost deposits and expand their network footprint, it’s important to take a step back and look at the existing footprint as well. Is it possible that utilizing current branches may deliver a greater ROI if branches were better connected? Finding a partner that is skilled in market analytics and branch refreshes, like the experts at Vivalociti, ensures that your project scope is proportionate with your goals.
Discovery: Key Questions to Ask
The discovery phase of any branch transformation project is of utmost importance. To effectively prioritize your investment, it is essential to evaluate both your branch network as a whole and each individual branch by asking some key questions:
How is each market performing?
How is each branch performing?
How does the branch align with market and consumer needs?
What advances can be implemented to improve efficiency and customer service?
SOLUTIONS THAT WORK FOR YOUR NETWORK
After assessing the current state of your financial institution’s network, understanding what will benefit consumers is a crucial step in ensuring these upgrades will deliver the best ROI possible. Whether it be introducing interactive tables to allow bankers to better connect with consumers or adding digital signage to display offers that have previously been overlooked, these selections will be the determining factor of success.
PROJECT EXAMPLE
BUCKEYE STATE BANK
Buckeye State Bank was searching for a way to show how dedicated they were to their customers and community. The project seen [below] displays a revamp of a newer location after a move to a new administrative space in a shared building. Upon entering the branch, customers are met with a branded atmosphere. The vinyl wall coverings feature aspects like the state flag of Ohio and the leaves, flowers and even the seeds of Ohio’s state tree, the Ohio Buckeye. Digital displays in the vestibule show Buckeye’s strong branding that flows directly into the lobby of the branch. The environmental branding in this space pays homage to the importance Buckeye State Bank places on its community.
PROJECT EXAMPLE
ALDEN STATE BANK
Alden State Bank partnered with Vivalociti to remodel a branch that felt disconnected from the customer journey. A space that was transformed from what looked like your everyday branch into a space that reflected their dedication to customers and their community. The branch features branded wall decals and casework carefully dispersed throughout the branch. The brand colors on surrounding accent walls help elevate the branch atmosphere and allow the visiting customers to develop a deeper connection with their choice bank.
Digital displays were also integrated throughout the branch to provide a refined feel, and allow for custom brand-focused content to be shown at all times. Not only are these displays easily updated for changing rates or promotions, they also provide the ability to showcase community events, the weather, and many things that directly correlate with Alden State Bank customers.
PROJECT EXAMPLE
SPECTRUM CREDIT UNION
Spectrum Credit Union recently enlisted the help of Vivalociti to implement a brand application across multiple west coast and Texas branches. While Spectrum has always possessed a strong brand presence, a merger in 2012 left many of its branches feeling generic and lacking their bold branding. Combine this with a great distance between office locations and you get a very disconnected brand experience. Vinyl wall coverings were installed showcasing Spectrum Credit Union’s bright color pallet and logo. This application of color in what was once a plain office space brought forth an energizing and inspiring power to all who visit the space. With the digital displays throughout the branch matching this revamp, visitors will never question what Spectrum Credit Union stands for.
BIG IMPACT, LITTLE INCONVENIENCE
Finding a partner that recognizes the value of insights before embarking on a project of this extent is critical to ensure return on investment. Additionally, your partner should be willing to provide a plan that minimizes the operational impact.
“Many changes that Vivalociti implements make impactful changes with minimal operational disruption. Skilled teams can implement technology upgrades and branded experience installations overnight, as well as updates to wall coverings, branded visuals and other finishes like paint and flooring”, says Tim Klatt, Vice President of Strategic Services at Vivalociti, a division of La Macchia Group. “Vivalociti was built on the principle that branches need to change at a rapid pace, therefore their design/build partners should have the ability to provide a transformative vision that can also adapt and change at the speed of life. It should also be on-time, on budget, and with minimal investment and disruption.”
In conclusion, transforming branch networks into cohesive, branded, and technology-driven spaces is no longer a luxury—it’s a necessity. But, it’s important to note that it doesn’t have to be a drain on resources. The examples of Alden State Bank, Spectrum Credit Union, and Buckeye State Bank demonstrate the power of intentional design and technology integration without long timelines and messy construction.
By evaluating existing branches, addressing pain points, and creating tailored solutions, financial institutions can not only meet consumer expectations but also foster loyalty and drive long-term growth. The branch of the future isn’t just a concept; it’s a strategic investment in delivering a seamless, personalized, and impactful customer experience.