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Branching in a FinTech World
Monday, September 18, 2017 6:30 AM

Anthony Burnett, Customer Experience Director, LEVEL5

Consumers strongly desire branches. Doing it well drives performance.

Measuring is key for improvement. 
In today’s consumer-centric world, change is constant. In fact, the only thing that doesn’t change is change. However, if we can quantify the change, then we can measure and improve.

If you build it, they may not come.
The world of branch banking has been changing rapidly. FinTech and consumer behavior have disrupted banking as we know it. Therefore, credit unions have to continue to change, always quantifying performance, measuring performance, and managing change to improve performance.

Competition is fierce, and pressure from non-traditional sources forces all decisions to branch to be supported by a business case. The perception by some industry experts and pundits is that this has not always been the case. Remember when you could build it, and they would come? Me neither!

Branching has always been about establishing a business case, connecting with the opportunity, and execution. Each part of the plan is integrated with the next to eliminate unknowns, to prevent loss of information, and to speed up the return on investment (ROI).

Measuring effectiveness and performance.
Over the last decade, LEVEL5 has worked with more than 100 credit unions across the US with their branch strategies and implementation. We know that measuring the effectiveness of the strategies created—quantified, and implemented through construction and training—is huge in measuring the performance of those credit unions, as well as our own.

The research and results are promising.
Earlier this year, we completed a thorough examination of our clients' branch performance. We went back to quantify and measure the effectiveness of the implemented branching plans to evaluate improvement. Processing their data, here is what we found:

  • Branches are producing an average of $35 million in new deposits.
  • Business case projections were 92 percent accurate (projection was $32 million).
  • Total asset growth was 10 percent annually, compared to the national average of 3.2 percent.

Take an integrated approach to branching.
The results that credit unions are experiencing speak to what’s possible when specific strategies, tactics, and actions occur. It is the integration of these components, through a specific project approach, that yields great returns for credit unions investing in branching.

Key Takeaway: Consumers strongly desire the branch for connection and relationship. Doing it well with a defined and executed business case drives performance for all the credit union's stakeholders.

For a deeper dive into the thought pattern and science behind earning a great ROI for branching click this link: ROI for Branching.

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LEVEL5 is an endorsed business partner of Credit Union Resources, Inc., a wholly owned subsidiary of the Cornerstone Credit Union League.