Innovating Branch Design to Build Deeper Member Connections

Credit unions have been facing a tug-of-war for years: Striking the delicate balance between their brick-and-mortar presence alongside increasing digital banking trends. Some credit unions are pausing renovations and new construction entirely while evaluating the fit of the physical branch. Many are asking, as technology constantly improves and online banking has become essential to fast-paced lifestyles, how do we maintain the relevancy of in-person banking?

The answer is simple: By focusing on the physical branch as an opportunity to deepen member relationships.

Brick-and-mortar remains critical to a credit union’s brand strategy. We all learned during the pandemic that there is no replacement for face-to-face interaction when it comes to building relationships. Rather than viewing brick-and-mortar as a competitor to online banking, the physical branch should round out the member experience for those seeking support with more complex needs and a personal touch.

Traditionally, members choose credit unions because of their model and values: Lifting local communities and offering more personalized, dedicated service. These key elements simply cannot be achieved without a strong presence in the communities you serve. Investing in these relationships ultimately provides a credit union with opportunities to grow business. Spending time learning about a member’s background can uncover additional products that may better serve the member’s needs. Or perhaps hosting financial education courses draws new community groups in.

Each time a member enters a branch, this opens the door for the credit union to strengthen brand loyalty. So, how can branches help credit unions to reach this lofty goal? It all begins with design.

Smaller, More Intimate Branch Layouts

The process starts with evaluating the branch footprint. Smaller branches spread throughout the community can enhance member convenience while also building personal connections.

Branch sizes have notably decreased compared to a decade ago. Today, the average branch size ranges from 1,200 to 2,000 square feet. Some credit unions are even opting for miniature branches to increase their footprint throughout the market. An option as simple as repurposing shipping containers into a branch provides the credit union with greater visibility in the community.

As back-of-house operations needs decrease, branches are typically staffed with fewer employees. Credit unions are seeing that each location simply does not need to house a dedicated mortgage lender, financial advisor or wealth manager. Instead, credit unions are enhancing training to develop universal skillsets, empowering team members to deliver quality service across any teller functions.

An added benefit of the smaller branch footprint is sustainability. With less land use and lower energy needs, smaller branch designs help credit unions better achieve their sustainability goals.

Open Spaces

As branches become smaller, an emphasis is placed on open spaces that feel inviting to members. This means replacing traditional teller lines intended for quick transactions with flexible spaces that enable employees and members to engage in conversations.

Within open layouts, it’s critical to account for privacy. Visual privacy can be established by remaining intentional about how the space is oriented. Placing a small divider or turning desks at an angle so that members do not queue directly behind them helps provide a buffer without closing off the room. For sound privacy, branch designs should account for some level of noise, such as a sound masking system, so that conversations and voices do not carry. Materials should also be carefully selected, to absorb some sound without creating an echo.

Experiential Retail

When considering features in the “branch of the future,” designs are beginning to take cues from experiential retail. For many credit unions, this means remaining focused on the human element, with fewer digital tools inside the branches. In urban markets where branches see higher traffic, ITMs or self-service kiosks may enhance member convenience. But most credit unions are recognizing that members who seek service in branches are best served by the person-to-person interaction. Simplifying the technology also means equipment does not need to be tied to specific offices, enabling team members to move throughout the branches with greater flexibility.

What experiential retail has mastered is creating an environment where customers feel comfortable lingering. This is why open, flexible space has become critical to branch designs, to provide multiple touchpoints for the credit union to connect with members throughout their visit. Customer support stations, round bar height tables and cozy nooks with bench-style seating can transform the in-branch environment.

Credit unions are even beginning to explore ways to incorporate food and beverage into the branch experience. To truly create an immersive experience, credit unions will creatively find new ways to stimulate the senses and evoke an emotional response that draws the member in.

‘Here to Stay’ Features

Some branch features stand the test of time and have long played a critical role for credit unions. Drive-thrus are still a highly utilized feature. Some municipalities have restrictions on the number of drive-thrus allowed within certain boundaries, and thus renovating existing real estate with already established drive-thrus should factor into a project’s up-front planning.

Community rooms remain important to many credit unions. And for good reason, considering their function focuses solely on hosting events for members and the broader community. From holding financial education seminars for members, to financial literacy programs with students or offering the space for use by community groups, these rooms speak to the core of the credit union identity: Connecting with members and impacting community.

Ultimately, the goal is for members to think of their credit union as more than a place for money, but as an important partner invested in their well-being. Emotions are tied to finances. What credit unions understand better than anyone is how to guide the member through this journey, building trust as a financial advisor.

Branch designs should do more than reflect the values behind cooperative finance. They should set the foundation for credit unions to lean into what they do best: Serve their members as humans with individual needs that deserve dedicated attention.

Abby Collins (left), Interior Designer & Megan Ellis, Senior Interior Designer The Neenan Company Fort Collins, Colo.