What Does the Future Hold for Branches? 

By Patrick Totty

Many credit union members view brick-and-mortar branches in much the same way that college kids think of home: They function well away from it but love basking in the sheer comfort and familiarity of the place.

That basic need for human contact is why credit unions will never abandon new branches or believe technology will replace the personal touch when it comes to important financial transactions.

“Twenty years ago, people said ATMs would replace tellers and change everything,” says Thomas Montchai, design architect at DEI Inc. “Well, they changed things but they didn’t replace tellers. I see no technology on the horizon that will replace human contact.

Current and impending technologies offer greater speed and more convenience. But they won’t replace the brick-and-mortar branch.”

Linda Perconti agrees that physical branches will continue to be integral to serving members. “All credit unions are under pressure to enhance their members’ experiences and reduce costs, and well-designed branches are one way to do that,” says Perconti, director, delivery channel solutions, for Diebold Inc., a Credit Union National Association (CUNA) strategic alliance provider.

However, she says branch use depends on demographics. Members of generation Y, for example, visit branches less often than baby boomers do. “They’re used to self-service channels, such as ATMs, online banking, and mobile banking. But they still want the tie—it’s important to have access to a physical branch. They just don’t use it as much.”

While younger consumers certainly want face-to-face contact before asking for a loan, Perconti says, they’ll often do a lot of research before the encounter, and then decide to complete a transaction in person or electronically.

Montchai says that because credit unions are perceived as friendlier and more people-oriented than other financial institutions, even as they use advanced technology, “we put an emphasis on community and local ties when we design a new branch.”

For example, Montchai says the new branch DEI designed for Visions Federal Credit Union in Johnson City, N.Y., only got underway “after we thoroughly researched the site and looked at its history. We found that Johnson City, nicknamed the ‘Carousel Capital of the World,’ was once the site of an old dance hall. Although the building was dearly beloved, it was eventually demolished. We came up with a design that recreated the old dance hall’s look, while inside we created a carousel-inspired lobby.”

Montchai says members often remark how the branch brings back memories. “It creates a strong connection with the community. It also features a community and history wall, where many younger members can see the history of their town. The branch has become part of the community fabric.”

It also reinforces the brand, he adds. “Branding is a major part of what we do. A consistent brand helps people easily identify your credit union.”

Next: More high-touch than high-tech

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