CenterPoint 3Q 2018 Fall

CENTER P INT Fall 2018

MAXIMIZE Your Small Footage

Getting The Most Bank For Your Buck

Locations You Can

Bank On!

There’s More To The Interior Of A CU Than The Money It Attracts

Returning For Its Sixth Spectacular Year!

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FALL 2018

CONTENTS

COVER STORY

Good Things Come In Small Spaces

INTERIOR

14 Update the Inside!

Even chairs matter

04

LAYOUT

16 Start Panning Now Start with a space requirement survey WEB DEVELOPMENT

MARKETING

Design How to achieve the “Thumbs Up”

Use site selection analytics efficiently

06 The Art of Website

TECHNOLOGY

08 Tech and Credit Unions

20 Make The Data Work For You DESIGN

22 Branches Are Here To Stay They just need some updates

Transform your space

BUSINESS

DESIGN

Takes Work Don’t focus on only one thing

26 Real Growth

10 No Two Branches Should Be Alike

Pay close attention to member demographics

CenterPoint Poll

30 Is the Traditional Teller Gone?

LOCATION

12 Where To Go?

Plan out your next location

www.ambizmedia.com ©2018 American Business Media LLC All rights reserved. CenterPoint magazine is a trademark of American Business Media LLC. No part of this publication may be reproduced in any form or by any means, electronic

STAFF PUBLISHER & EDITOR-IN-CHIEF Vincent M. Valvo MANAGING EDITOR Kaitlyn Keegan ASSOCIATE PUBLISHER Barb Dimauro OPERATIONS MANAGER Kurt Schenher ONLINE CONTENT DIRECTOR Navindra Persaud CLIENT SOLUTIONS MANAGER James Seaberg GRAPHIC DESIGN MANAGER Stacy Murray GRAPHIC DESIGNER Scott Ellison

or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher.

Advertising, editorial and production inquiries should be directed to: American Business Media LLC, 345 North Main St., Suite 313 West Hartford, CT 06117

Interested in receiving additional copies of CenterPoint?

Call (860) 719-1991 or email kschenher@ambizmedia.com

Fall 2018 | CENTERPOINT | 3

LAYOUT

MAXIMIZE

Your Square Footage Making The Most Out Of Your Smaller Space

by Jim Caliendo

SPECIAL TO CENTERPOINT

Jim Caliendo is President and COO of PWCampbell

4 | CENTERPOINT | Fall 2018

“Good things come in small packages” as they say and now that popular proverb can include branches of today and into the future. Traditionally, branches used to occupy over 4,000 square feet complete with large teller lines, walk-in vaults, numerous private offices and spacious lobbies.

Today’s branches, however, need to undergo a complete transformation, packing in a heap of member services, education, technology and marketing into 3,000 square feet or less.

Members are making fewer trips to physical branches and for different reasons. As a result, many credit unions are changing their branch models to take advantage of technological advances and self-service options, enabling them to downsize physical space, decrease staff and maximize operating efficiencies.

With smaller retail space, it is now more

important than ever that credit unions make the most of it. So, exactly how are financial institutions maximizing their reduced retail space? Rather than the transaction driven branches of the past, credit unions are taking lessons from the large, successful retailers of the world and creating a member experience within their newly defined environment.

You can find features from internet cafés to selfservice machines to touch screen iPads, and everything in between. Technology advancements have opened the door to a variety of space saving solutions eliminating bulky equipment and mounds of paper. Add to that staffing models such as the Universal Employee, which reduces the number of employees needed to staff a branch, and today’s branch can operate efficiently in a much smaller space.

One of the first things you will notice in a branch

According to The Financial Brand, the average size for planned freestanding branches was reported at 3,040 square feet, down significantly from 3,500 sf in 2006 and 3,900 sf in 2003; the median was 2,950 square feet.

that has undergone this new transformation, is that there is no longer a large teller line.

Instead, multi-faceted member service “pods� that take up a fraction of the space are used.

Routine transactions such as check cashing to more advanced consultative services and account openings can now take place in one spot, eliminating the need for multiple offices or stations.

Another visible change will be the look and feel of the branch or the member experience. These branches tend to have a more open platform and be retail and commercial oriented in nature. They also have a considerable amount of branding, messaging and educational information – both in the traditional format of signage and displays as well as digital mediums that tend

to be more engaging.

Perhaps the most notable difference is the addition of convenient, time saving self-service advancements such as new-age ATMs, interactive teller machines, and video conferencing. These options offer greater capabilities and flexibility for the techsavvy millennials while reducing the space requirements traditionally needed to provide such services.

As you can see, as the world around us changes, credit unions too must look for new ways to adapt. And, although these changes are not suitable for every culture, corporate philosophy or member demographic, branches are becoming one more phenomenon proving that bigger may not always be better.

Fall 2018 | CENTERPOINT | 5

Navigating The Art Of Website Design: How To Create A Winning First Impression

I

by Alena Roberts, SPECIAL TO CENTERPOINT

n today’s market, credit unions are enjoying renewed popularity due to their membership-driven policies, personal service and local community ties. Many consumers are drawn to these features and are starting with research on the web. For this reason, progressive credit unions must capture the attention of these researchers and potential members with a compelling website and online story.

Current and prospective members will judge your website in less than a blink of an eye – literally. Consider this recent study from Google: “Results show that both visual complexity and prototypicality play crucial roles in the Alena Roberts process of forming an aesthetic judgement. It happens within incredibly short timeframes between 17 and 50 milliseconds. By comparison, the average blink of an eye takes 100 to 400 milliseconds.”

Despite knowing the significance of visual design, many credit unions still utilize outdated websites with poor layouts and awkward usability. Credit union websites are often 6 | CENTERPOINT | Fall 2018

complicated, cluttered and hard to navigate – a frustrating user experience and one that will turn off members right away. In many ways, your website is the face of your credit union and your biggest branch, which is why it’s imperative to reevaluate your website design.

Working on revamping your website is a big project with important implications, but essentially it boils down to this – improving the user experience. The design of the website should be catered for ease, simplicity and effortlessness.

Below are the four most important things you should incorporate to really take your website to the next level:

1. Positive Visual Experience Strong visuals communicate trustworthiness, credibility and more – in those first crucial milliseconds. Here are some principles that will lead you in the direction of creating a positive visual experience: Trendy Design – It’s important to use a good design technique, and one trend we’re seeing a lot more of is parallax scrolling – a technique in which the background of the website moves at a different speed as the rest of the page for an impressive visual effect. With trendy designs like this, you can wow viewers with page depth and animation, make

page visits last longer by encouraging visitors to scroll through the entire page, provoke curiosity and reinforce website credibility with innovative, interactive viewing.

Large Headers – Another trend we’re seeing more of is hero images – large, attractive headers. Most of these images are photographs which directly relate to the content; some designers have become crafty using vector backgrounds, illustrated artwork and even animated video. These oversized banner images serve as a user’s first glimpse into your credit union, because of its prominent placing towards the top of the webpage that usually extends full-width.

Icons – In our everyday life, there are icons everywhere – road signs, keyboards, you name it.

Icons help us to better understand and interpret information. When we look at the content of a website, it’s all about readability. How well can people grasp the main points, and how easily can they read and process information? Icons can help in several ways: they put content in a nutshell, they draw attention and can increase readability. They are a great attention grabber, and they help visitors find and scan content easily.

Simplicity – People crave simplicity, and when it comes to design, less is more. Make messages

more targeted; focusing on one quality message is better than delivering five watered-down messages. Text on landing pages should be broken up and easy to read. Good designs use empty space generously rather than cramming content into a small amount of space.

2. Good Navigation A website’s structure and function is determined by its navigation. Navigation doesn’t just include what’s on the drop-down menus; it includes the steps users take as they journey through your website. For example, if a user wants to become a member of your credit union, they should be able to start the application process with just a few easy clicks.

A good rule to follow is this – regardless of what the member is looking for, whether that is the location, hours or services, nothing should take more than three clicks to get there. There are few things more frustrating than poor navigation. If a user can’t find something they are looking for, the navigation has failed.

All content should be organized into categories, subcategories and pages. Wellorganized inventory will become your sitemap and become the basic structure of your website.

3. Content Strategy The purpose of a website is to persuade some type of action. To do that, your website content needs to contain calls to action (CTA) buttons. Your CTA buttons are arguably the most important part of your website. A great CTA button can direct users, get them to take desired action, improve conversion rates and ultimately help you achieve your objectives.

Having generic, poorly placed or boring CTA buttons will do very little to get your users’ attention or get them to click.

If you’re experiencing lower than anticipated conversion rates, it may be time to revisit your CTA buttons. There are four core considerations for every call to action: Text: Is your call to action clear? Does it create a sense of urgency? Is it short and to the point? Does it communicate value?

Placement: Is your call to action “above the fold” (positioned in the upper half and visible without scrolling down the page)?

Size: Is it easy to find? Is it easily identifiable?

Color: Does it visually stand out from

the rest of the page? Have you tested which colors provide you with the most clicks?

4. Mobile Optimization Historically, you had to make sure your website was “mobile friendly.” Now that more and more users are on mobile devices, credit unions must be “mobile first.”

Your website must be responsive and designed around the mobile experience first – not as an afterthought. Your website should be built to adapt to any screen size, whether it’s the smallest smartphone, tablet or the largest desktop monitor.

Responsive design means that there are multiple fluid grid concepts – making page elements sized proportionally. This responsive design is crucial because there are hundreds of different devices out there that can access your website. And truthfully, the number of these devices, platforms and browsers is only going to increase as time goes on. Your website needs to be prepared to work with all of them.

It’s easy to assume your website is “good enough,” but with members and potential members alike relying more heavily on websites than physical branches it’s always a good idea to check in and evaluate. Planning, designing and implementing content-rich, easy-to-use websites are paramount for success.

Your credit union website is your information hub for everything that you want to communicate to your market – housing your products and services, team member info, locations, hours and even history – and it is the portal to your banking services. Just as potential customers walk by and evaluate a retail store on its physical storefront, today’s members often base their first impression on your “digital storefront” – your website. By incorporating the above design elements, you can successfully revamp your website and make a stellar first impression. ____________________________________

Alena Roberts is an account associate at William Mills Agency.

Business Intelligence

Remain Relevant Drive Revenue Control Costs Improve Performance

longgrouponline.com

603.424.5664 tomlong@longgrouponline.com

Fall 2018 | CENTERPOINT | 7

TECHNOLOGY

21st Century Technology Is Transforming Branches

by Rod Topolweski and Christine Howard, SPECIAL TO CENTERPOINT

T

here is no denying over the past decade, technology has changed the way we live. Technology has opened a world of opportunity as well as a sense of immediacy in all that we do. Who won the Red Sox game is within two clicks on your phone. The expectation of immediate response or even our desire for self-serve results have increased the average expectation of client service.

This is true throughout all industries, and the banking industry is no different. Recent branch trends are adjusting to these changes with forward thinking design of what has traditionally Rod Topolewski Christine Howard been the banking model, right down to the design of the physical space. Regional credit unions are reevaluating their physical branches to strive to meet the increased expectations of today’s financial consumer, while at the same time reducing its overall facility footprint. Many are leaning towards smaller, mini-type branches, using open concept spaces that are flexible enough to support members with varying expectations, while using technology and client-centric customer service to meet their financial needs.

THE CREDIT UNION OF THE FUTURE Credit nnions are slowly moving from larger branch sizes (5,000 square feet was once the average), the 4-5 teller lines, millwork separation and “bandit barriers” towards smaller, welcoming spaces with today’s branches averaging 1,500-3,000 square feet or smaller.

This approach allows for more one-on-one interaction in a more relaxed atmosphere.

The lobby of the past, with check desks and waiting areas, has been updated with blurred edges, and multiuse, sleek spaces that are more functional. New designs are deemphasizing walls and using glass panels and other methods to define space or provide privacy, while 8 | CENTERPOINT | Fall 2018

maximizing visual connections and without affecting the overall openness and sightline aesthetic. The open concept spaces are relying on unique and interesting design elements including flat panel displays, specialty lighting fixtures, crafted ceiling panels, and modern flooring twists to create visual space separation. Branding walls or display walls are replacing the brochure racks and rate boards, many using multiple monitors that provide the flexibility to use as one screen for large marketing or separately to accommodate multiple different messages.

This open format increases the staff’s availability to circulate and assist members with multiple needs. With these changes, credit unions are moving toward a more retail staffing model with no “teller” specifically, but staff who are banker or marketing representatives for the credit union that provide cross selling and can offer options to the member on the credit union’s offerings.

INTEGRATE TECHNOLOGY Financial institutions can credit technology such as the Cash Recycler—where historically tellers had a “cash drawer,” the Cash Recycler receives and distributes cash individually to the appropriate staff. This level of security removes the need for walls and barriers. Long counter teller lines separating tellers from members have opened up with pod stations, bringing members and staff together for more personal interaction, creating more memorable transactions and building personal relationships.

DON’T FORGET THE BACK Driven by these changes, the back of the house needs have changed as well. Conference rooms and meeting spaces are less defined and are rare in the new design models. Where there may have been conference rooms sized for 8-10 staff members, today they’ve been reduced to serve only 4-6 people. Additionally, employee lounge areas are becoming marginally smaller with less FTEs. Kitchenettes are becoming smaller, and employee spaces are trending toward inviting, but not too comfortable. Many credit unions have moved toward unisex single handicapped restrooms when allowed by code and branch size, also available to the public.

Safe deposit vaults are rarely seen in the new model.

An alternate to the large five or six sided safe deposit vaults are fire rated safe deposit rooms with smaller safe deposit safes—similar to cash safes in the work rooms.

This trend is slow to change however in urban areas or those with older clientele.

Drive-up lane windows are becoming more obsolete, with two-way cameras being incorporated at the drive-up to interact with the member. This has improved security as well as interior employee comfort. Multi-function drive up banking equipment can also act as direct member interaction during operating hours, provide ATM services after hours, or both anytime depending on the credit union’s needs. Video function can also link to inside the local branch to an idle employee at another branch or call center providing staffing flexibility. One thing that will likely remain for the near future is the reliable ATM. Information technology has reduced the overall need for large records storage. Document imaging and regulations have kept decreasing the need to maintain hard copy storage on site at branches, and storage space is typically limited space or shelving within a work room.

Work room space is reduced, as work equipment and work stations are now trending smaller. Gone are the days of work offices with large credenzas, overstuffed large leather chairs, mahogany desks and rows of filing cabinets. Smaller furniture and ergonomic task chairs have replaced the formal “office.” With staff providing many services on the main lobby floor, and in some branches, pods with seating, the defined office becomes less of a necessity as a place to conduct member business.

Overall, mobile and online banking trends continue to grow across generational sectors which have reduced the need for larger brick and mortar branches.

But the new, smaller model branches are now more flexible to be incorporated in to the electronic version or strategy of a credit union. The new smaller branch model can also be the marketing and visible embodiment of a credit union committing to a geographic area, saying “here we are, ready to serve you either online or in person.” ___________________________________

Rod Topolewski is a Project Manager/ Designer for Brown Lindquist Fenuccio & Raber Architects, Inc. (BLF&R).

Christine Howard is the Director of Business Development for BLF&R.

Photo by Dan Cutrona

Fall 2018 | CENTERPOINT | 9

DESIGN

What Credit Unions Can Learn From Retail Stores No Two Branches Should Be Alike

T

by R. Michael Goman, SPECIAL TO CENTERPOINT

he past ten years have seen a dramatic change in how customers use their financial institution. Online and electronic banking have forever changed what happens inside the branch, with activity at the teller stations dropping by more than half. Interestingly, in many ways these changes parallel those which have occurred within brick and mortar retail stores as ecommerce has grown, and we can learn some important lessons from our friends in the retail community.

There was a time when retailers largely built the same stores across all markets, with only a few differences based simply upon the store R. Michael Goman size.

Customers quickly tired of that sameness and design imperatives changed to introduce a level of individuality. No two Starbucks are the same, for instance, with each store reflecting a local design aesthetic, perhaps also giving a nod to some aspect of local history. This customization has increased in the age of online and ecommerce, and the changing expectations of branches have only emphasized the need for branch design to change.

Our work is centered around helping financial institutions develop a deeper understanding of their members. Equipped with that information, branch design becomes 10 | CENTERPOINT | Fall 2018

Financial institutions must be careful to avoid falling into the trap that branch design should be heavily focused upon technology. data-driven. Broadly, good branch design should respond to the demographic and socioeconomic characteristics and level of urbanization present within the trade area which it will serve.

CUSTOMIZE YOUR BRANCH A branch in a densely populated urban location served primarily by public transit should be different from one in a rural area where members arrive in pickups, and different again from one in a suburban setting which will serve parents driving SUVs. Similarly, a branch serving a largely Asian demographic should have a different aesthetic from one serving a southwestern European population. Lastly, the design should be fine-tuned to be responsive to the specific socioeconomic characteristics of the institution’s existing members as well as those which it would like to reach, and those which are dominant in the census tracts within the surrounding trade area. In its simplest form, socioeconomic analysis helps answer important questions about how members spend their time and money, and why.

Beyond these broad influences, successful branch design must also respond to the changes in how members use today’s branch. Form

still follows function in the modern branch but function is no longer simply processing transactions and an efficient work flow. We’ve learned that the best branch design is that which is focused upon creating and supporting opportunities for communication and social interaction. Importantly, the foundational theme underlying what we’ve learned is that members, and particularly those of the millennial generation, want their experience in the branch to be educational, entertaining and social. We describe these themes as “teach me, entertain me and give me something I can share with my friends.”

NOT JUST ABOUT TECHNOLOGY Financial institutions must be careful to avoid falling into the trap that branch design should be heavily focused upon technology.

Technology is simply a tool which can be utilized to support the theme of “teach me, entertain me and give me social opportunities.” Technology stations and the like should be viewed from that perspective.

However, it’s equally important that online services and solutions be fully integrated with those offered within the branch. The communications, marketing and mes-

Having skilled universal bankers who support that purpose is increasingly critical to building branch traffic and productivity. saging must seamlessly support both channels of member engagement. Remember that the purpose of the visit to the branch is to engage directly with your bankers. Having skilled universal bankers who support that purpose is increasingly critical to building branch traffic and productivity.

TRENDING SMALLER Overall, branches will continue to get smaller, and are increasingly likely to be housed within a typical retail footprint. We’ll continue to see declining interest in large, free-standing branches with multiple drive-thru lanes. The most advanced branch designs we see often have few or no traditional teller stations. Standing pods or desks, seated consultation zones or casual seating areas have replaced traditional teller stations. Branch design must also be context-sensitive. For example, a branch which appeals to the socioeconomic characteristics of

millennials is likely to trigger significant push-back among older members in a rural area.

In larger regional markets, we see successful networks utilizing a huband-spoke format, with a single large branch operating as the hub, creating a strong market presence and offering a full suite of consumer and commercial services, and supported by smaller, more localized or neighborhood branches with fewer staff and more emphasis on self-service, but perhaps with video access to hub or central office specialists. Rounding out the market network are smaller locations primarily offering self-service with one or two FTEs, and then fully self-serve locations utilizing ITMs, perhaps with video capability. These smaller branches often offer low cost of entry and greater market flexibility.

The ultimate flexible branch is the mobile “RV branch” which can be located at community events and can

provide very effective outreach within the local market.

The co-location of express branches is moving beyond the branch within a grocery store to include branches in drug stores, mass merchants, office supply and warehouse club stores.

This is an interesting trend that offers some unique opportunities for direct engagement with, for example, small business people while they are visiting their local office supply store.

Existing branches that are too large can be reduced by offering surplus space to professionals having complimentary clients, such as lawyers, accountants and realtors.

When you approach your next branch, its design should be focused on creating and supporting opportunities for communication and social interaction. Apple is in the business of getting us to live much of our lives online, and yet their retail stores are where they engage with their customers, teaching them how to get the most out of their products. There’s a lesson in that for all of us. ________________________________

Michael Goman is President of Accubranch, LLC.

Fall 2018 | CENTERPOINT | 11

LOCATION

Locations You Can Bank On!

by Jay Nuss

SPECIAL TO CENTERPOINT

“Bankers’ hours” is a term that at one time implied an easy or abbreviated work schedule. But, as the

old saying goes, that was then and this is now. Ask Jay Nuss any banker today if that term still applies and you’ll get a resounding “no.” Long gone are the days when credit unions and their individual branches closed at 3 or 4 p.m. and weren’t open weekends.

The competition is so intense in the industry today, with every credit union seeking to capture and increase marketshare, and it goes far beyond brick and mortar locations. Still, remember the old real estate adage, “Location, Location, Location.” While some members may be content to conduct banking online, there is still a large segment of the credit union member population for whom location is a key factor in determining where to con-

duct business. As the competition increases, we see credit unions and banks expanding their number of branches, which often means going into a new community or opening an additional location in a community where the financial institution is already established. For the CEO seeking to expand his/her institution’s footprint, location matters.

In planning the establishment of a new branch, multiple factors must be taken into consideration.

Given that a credit union’s most significant asset is its brand, the location – and design – of any new branch will be heavily influenced by the components of the credit union’s brand. And of course, the architecture must be totally consistent with the brand. The catch phrase “designing the structure from the inside out” reflects the necessary perspective on the importance of the brand.

And before getting to that point, there’s the location question.

Where to go? New construction?

Purchase or lease an existing building and build it out to specifications? Given that branch networks can be very expensive to operate, efficiency and productivity must be the paramount considerations when

evaluating a specific location. The first step is a strong due diligence initiative: research both the community and specifically the neighborhood. What is the history of the business climate in the neighborhood? Is it stable? Has it declined? Are new businesses coming into the area? If you are looking at an existing structure, what was its previous use? What is the attitude of the community officials toward growth and zoning? This will be especially important if the specific location may require a zoning change – which in turn opens potentially more sites for consideration. It’s worth remembering that what may be suitable for a branch may differ from what you’d seek if planning to establish a credit union’s main

While some members may be content to conduct banking online, there is still a large segment of the credit union member population for whom location is a key factor in determining where to conduct business.

12 | CENTERPOINT | Fall 2018

headquarters.

The spaces you seek wouldn’t need as much parking, for example.

Certainly, most financial institution officials have a network of resources to assist in this initial due diligence.

It makes sense to work with a local commercial broker or someone with deep community ties and knowledge to guide you through the history of the community and neighborhood. Such an individual may also be able to point out the pros and cons of a location, including if there are traffic issues at certain times, environmental remediation considerations, and more – and may also know of opportunities that are not otherwise known.

And, other considerations under the “Location, Location, Location” banner are the location of potential borrowers, and the location of potential depositors. There is such an emphasis today on online services that it is tempting to think that a physical location does not matter as much. Most financial institutin officials would agree that a branch should provide a meaningful and interactive experience for the member through relatively seamless online and offline platforms. With all that said, however, the importance of a branch’s location and design should in no way be minimized.

When the boardroom discussions about what community to locate in have concluded, that’s when it’s time to consider the on-the-ground steps needed to bring those discussions to reality.

Good luck with your next location!

_________________________________

Jay Nuss is the founder and principal of Jay Nuss Realty Group, LLC. Fall 2018 | CENTERPOINT | 13

INTERIOR

New Furniture Trends Bring CUs Into The 21st Century

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by Michael Troia, SPECIAL TO CENTERPOINT

anking has long been thought of as one of the more traditional professions, and for decades and even centuries, their interior and exterior environments have been designed to reflect that sentiment. While for many these design choices signified stability, trustworthiness, and safety, through a more contemporary perspective one could see these same elements reflecting a cold, staid, uninspiring space.

Aside from attracting and retaining members, which is crucial to the viability of any business, banking professionals should look to reinvent their own workspaces, so that they can additionalMichael Troia ly attract and retain employees that add to the overall value of the financial institution as a result of their dedication, professionalism, and sincere enjoyment in coming to work.

Thankfully, new designs in corporate furniture offer the latest in technological advances while still providing solid efficacy, and come in so many colors and styles that it’s easy to blend these pieces in with the overall look of the credit union, further strengthening the organization’s overall identity while differentiating itself in the increasingly competitive banking market.

Financial institutions have always featured private and semiprivate office spaces, and due to

14 | CENTERPOINT | Fall 2018

the often very personal nature of the discussions that take place between staffers and clients, these types of spaces will continue to be needed. For most situations, full-panel workstations work well; these are semi-private spaces that include some acoustic considerations through the use of paneling and tack boards, feature storage options such as upper hutches or lower filing cabinets, and provide increased work surfaces. Semiprivate spaces also offer a certain level of privacy for their monitors so that confidential information is obscured. And with the growing popularity of ceiling-to-floor panels, additional private office spaces can be added without the need for construction costs. Both private and semi-private spaces can also be accented with glass, laminate, and fabric panels that are coordinated to a credit union’s brand, further

reinforcing the institution and its culture.

All About the Chairs Ergonomic chairs remain the number one seller, and are key to preventing injuries and augmenting a healthy and cared-for workforce. Ergonomically designed chairs allow for the ultimate fit for any body type, and include lengthsliding seat pans (adjusted for an individual’s leg length), ratcheted backs for proper lumbar support, and height-adjusting arms to ensure all angles of one’s body are appropriately at 90 degrees. These types of chairs demonstrate a commitment to employees’ well-being that is noticeable and sincerely appreciated – especially when factoring in how much use this one piece of equipment will see every day. Additionally, many of these ergonomic desk seating options can also be customized with logos,

colors, and overall branding, again helping to augment the credit union’s identity for employees and members both.

For years, tellers have been partitioned, almost jail-like, in an effort to maintain a secure environment, at the expense of creating a welcoming one (or, from the employees’ perspective, a comfortable one).

New advances in office furniture offer updates for tellers, while still keeping security considerations paramount. Modified benching systems can offer tellers the ability to communicate among themselves and with their members more easily, and feature clean lines with built-in wires that stay hidden. Additionally, tellers who stand frequently can take advantage of some of the latest advances that accompany and enhance the sit/stand desks, including perches – which allows a person to rest their legs for a moment or two without completely sitting – and scoops – a surface that people can stand on, similar to a balance board but not as extreme, and allows users to engage their core and shift their weight.

Updating the look of a credit union’s lobby or lounge can also go a long way toward changing the atmosphere, and again will be positively noticed by both members

For credit unions to remain relevant and vibrant, they should begin to incorporate design elements that demonstrate their commitment to their employees while attracting members. and employees. Credit unions can incorporate more contemporary benches with built in chargers, mobile club chairs with tablet arms, U-shaped sofas, high-top tables with bar stools, and even sofas that double as a phone booth, providing privacy and style.

A comfortable area for a customer to add up some figures before making a deposit, or reading some of the credit union’s literature while waiting to talk with an associate, can go a long way toward allowing members to feel like they can, and should, linger that much longer. This, in turn, allows employees to introduce members to more of the credit union’s services, and separately helps to build camaraderie with other employees.

A Place for Employees Cafés, or break rooms, are another area for employees to enjoy and where the opportunity exists for them to build collegial

relationships. Break room seating also offers the ability to brand the credit union through splashes of bright color and coordinated stools, and again demonstrates a commitment to employee wellness and appreciation. Color is key to this room, as it can transform a space from an area that is seen as less than desirable to spend down time in to one that is welcoming. Again, many lines of furniture offer a range of palette possibilities.

For credit unions to remain relevant and vibrant, they should begin to incorporate design elements that demonstrate their commitment to their employees while attracting members, transforming previously predictable spaces into places that people want to be.

Michael Troia is CEO and co-owner of Office Gallery International.

Fall 2018 | CENTERPOINT | 15

PROTECTING VULNERABLE CLIENTS LAYOUT

Don’t Wait To Plan Your Space

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by Jim Caliendo, SPECIAL TO CENTERPOINT

chieving operational excellence and having the correct amount of space to do so is becoming an increasingly pressing item on the agendas of financial institution CEOs nationwide – even more so given the recent escalation of mergers and acquisitions within the banking industry.

Whether an institution expands due to M&A activity or strictly through organic growth, many times operational efficiencies and productivity get lost in the shuffle. And, when you add increased outsourcing and technological advances into the mix, the operational landscape is changing significantly.

While many financial institutions excel at forecasting and planning, unfortunately, many seem to fall short in providing efficient operations space. Rather than having a calculated space strategy that addresses concerns for the foreseeable future, many institutions operate in a reactive manner rather than a proactive method. How many times

16 | CENTERPOINT | Fall 2018

have you hired an employee with no place to put them?

Have you ever had to turn a board room into a temporary office? Or possibly, have several departments that need to work simultaneously together but are located in two different buildings?

A lot of these inefficiencies and unproductive processes can be solved by going through a well thought-out, comprehensive space planning exercise. Space planning forces management to take a thorough look at the usage of existing space, current number of employees, as well as future expectations and needs.

The first step in space planning is to complete a space requirement survey. This involves a series of questions related to existing conditions, staffing requirements and projections and department adjacencies and workflow where input from key management and department personnel is essential to the success of the plan.

Once the survey is completed, a series of charts and graphs can be created which visually outlines the projected number of employees and the estimated amount of space needed to efficiently accommodate them over a 10 year period. This data is paramount in providing management a good summary as to whether current office space is going to be sufficient for achieving existing and future optimal usage of operations space.

CONTINUED ON PAGE 18

After 2015’s record year for banking and securities mergers and acquisitions, many institutions are now feeling the effects from having to put together office space to accommodate the additional room that was needed for increased staff and overlapping departments.

Fall 2018 | CENTERPOINT | 17

Examples of space planning and how to utilize your sqaure footage.

CONTINUED FROM PAGE 17

The final step to any space planning strategy includes analyzing the data and determining whether or not existing space can be configured as to maximize total square footage and accommodate current requirements, as well as future needs, all the while streamlining the organization and creating winning conditions. It is at this point management will have the necessary data to make the difficult decision of whether to renovate

18 | CENTERPOINT | Fall 2018

existing space to accommodate the space necessities of the organization or whether the organization needs to look outside for a possible new location. Either way, the management team will be equipped with the necessary information to make a knowledgeable decision.

When it comes to space planning, you have the choice to be either reactive or proactive. Putting together a well thought out 10 year space plan

does take some time and commitment from management, but in the long run can ensure productivity and operational efficiencies within your organization ... plus, it ensures your boardroom remains a boardroom and not your newest employee’s office! __________________________________

Jim Caliendo is President and COO of PWCampbell.

CSI KNOWS BUSINESS IS RISKY.

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“Good things come in small packages” as say and now they that important than branches of today popular proverb can include ever that credit and into the future. most of it. So, branches used Traditionally, exactly how are unions make the to occupy over financial institut maximizing their 4,000 square complete with ions reduced retail feet large teller lines, space? Rather the transaction numerous private walk-in vaults, than driven branche s of the past, unions are taking Today’s branche offices and spacious lobbies credit lessons from the s, . retailers of the large, complete transfo however, need to underg world and creating successful o a rmation, packing experience within member service in a heap of their newly defined a member s, education, You environment. can find feature marketing into technology and s from interne 3,000 square feet service machin t cafés to selfor less.

Members are es to touch screen making fewer everything in iPads, and branches and trips to physica between. Techno for different l logy have opened the reasons many credit door to a variety advancements unions are changin . As a result, solutions elimina of models to g their branch ting bulky equipm space saving take advanta of paper. Add ent and mound ge of advances and to that staffing s self-service options technological models Universal Employ to downsize , enabling them ee, which reduces such as the physical space, of employees the number decrease staff maximize operati needed and ng efficiencies. branch can operate to staff a branch, and today’s With smaller efficiently in retail space, space. a much smaller it is now more One of the first things you will notice in a branch

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According to The Financial Bran d, the average size for plan freestanding bran ned ches was reported at 3,040 square feet, dow n significantly from 3,500 sf in 2006 and 3,900 sf in 2003; the med ian was 2,950 square feet.

that has underg one this new transfo is that there is no longer a large rmation, to be more engagin Instead, multi-f teller line. g. aceted membe Perhaps the r service “pods” that take up a most notable fraction of the difference is the addition space are used. of convenient, Routine transac tions such as time saving self-service advanc check cashing to more advanc ements such ed ATMs, interact as new-age ive teller machin account opening consultative services and s can now take es, and video conferencing. spot, eliminating These options place offer greater the need for multipl in one capabilities and or stations. flexibility for e offices savvy millenn ials while reducin the techAnother visible requirements g the space change will be traditio and feel of the nally needed look the such services. to provide experience. These branch or the member As branche you s tend to have can see, as a more open the world around platform and us changes, be retail and credit unions commercial oriente too must look for new ways d in nature. have a conside They also to adapt. And, rable amount these change s are not suitable although of branding, messaging and educational informa culture, corpora for every both in the traditio te philosophy tion – demographic, or member nal format of branches are displays as well signage and becoming one as digital medium more phenom enon proving s that tend that bigger may not always be better.

There’s More To The Interior Of A CU Than The Money It Attracts

Fall 2018 | CENTERPOINT

| 5

Fall 2018 | CENTERPOINT | 19

MARKETING

Utilizing Advanced Site Selection Analytics For Your Next Branch

S

by R. Michael Goman, SPECIAL TO CENTERPOINT

uccessfully choosing a location for a new branch has become both more complicated and easier in recent years. Significant changes in how customers access banking services have upended the traditional metrics used to evaluate available sites. Basic traffic counts and demographics remain important, but are only a small part of the analysis which must be done to ensure that a new location will be accretive to the financial institution’s results.

On the other hand, the quality, cost and usability of data on consumer behavior has improved dramatically in recent years, enabling us to gain a vastly deeper understanding of how people spend their time and money. In turn, this has opened the door to developing very accurate member profiles for a given credit union, and utilizing those profiles in the process of siting new branch locations. At the same time as ecommerce has disrupted the role of the branch, we’ve gained the ability to acquire a vastly greater understanding of customer behavior.

Today, the science around site location analytics has become one of the basic tools in our toolkit. It wasn’t long ago that we would routinely spend in the six figures to develop an analysis of the demographic characteristics and basic spending habits within the trade area surrounding a site under consideration for a new branch. Viewed through the lens of what we can do today, that analysis was a very blunt instrument.

UNUSED DATA We work with numerous financial institutions and our experience has 20 | CENTERPOINT | Fall 2018

been that regional, community banks and credit unions are either not utilizing advanced site selection analytics or are using only a small percentage of their full capabilities. With those who have attempted to use it, we routinely see the binders containing vast amounts of information sitting on their desks, largely unused. In fairness, this isn’t surprising as the breadth and depth of the information can be daunting and it takes time and a level of experience to understand it. To their credit, financial institutions leadership also often seems to instinctively understand that there is a risk of drawing incorrect conclusions from the data.

Additionally, we continue to encounter financial institutions who believe that they serve their entire community when, in fact, we know our analysis will show that approximately 80 percent of their members come from within a narrow cross-section of those living within a defined trade area.

Many retailers have understood this for many years and embrace the idea of knowing their member as a fundamental element of their site selection, marketing and communications strategies. Violating the basic principal of knowing your member has led to many an unfortunate outcome.

We are often asked to help diagnose why a given branch isn’t performing to expectations. Using consumer behavioral analytics, we typically find there’s little or no alignment between the majority of the behavioral profiles present in the trade area surrounding the subject branch, and those proven to be responsive to the credit union’s offerings and messaging. In summary, we find that the people living in the trade area aren’t the credit union’s members. If there’s a bright side to this, the analysis will point the credit union’s marketing department toward options which can increase traffic at the branch; however, the client would have had the option of reconsidering locating a branch in that market if the analysis had been done earlier. This highlights what everyone who has opened a poor-performing branch knows: a financial insitution can change a lot of things including the marketing, the staffing and the prod-

ucts and services offered; however, the most difficult and expensive thing to change is the location.

ONLY ONE PIECE OF THE PUZZLE It’s important to recognize that behavioral analytics is only one component of the work to be done prior to deciding to open a new branch. The other is the field work. Each must be completed and the results carefully combined in order to create a complete understanding of the specific site. As important as it is to have the behavioral portion done by professionals who work with that information every day, the field work must also be done by experienced site selection professionals. To be clear, this doesn’t mean calling the local commercial broker.

While you still must use appropriately licensed professionals, it’s critical that they have extensive and current experience in the site selection methodolo-

of decades of remarkable advances in data collection, analytical methodologies and quantitative analysis of a variety of site characteristics. Site selection within the financial institution industry benefits from these advances as their application minimizes the risk of opening a poorly performing branch and allows for greater predictability of the return on investment of a new branch. Additionally, improvements in understanding member behavior provide the ability to identify and connect with the specific members who will respond positively to their overall presentation, often at lower cost.

Ecommerce and online banking continue to transform the role that physical locations play in connecting an enterprise to its customers. Online capabilities reduce many services to commodities, but are a far less effective channel for delivering personalized consultative and advisory services or providing opportunities for effective two-way

Approximately 80 percent of financial institution members come from within a narrow cross-section of those living within a defined trade area. gies used by national or regional multilocation enterprises in the retail, food and beverage or service industries.

Among other things, their work should include on-the-ground analysis of site positioning relative to competitors, traffic patterns, turning movements, parking layouts, co-tenancy impacts, the lease terms and sales performance of adjacent traffic generators, building and signage visibility and a variety of other factors. When utilized at its highest level, each of these factors will be assigned a specific weight and the result used to adjust the predicted volume for a new branch. This is an important step as the cumulative effect of these factors will often adjust the prediction by as much as 30 percent.

Modern site selection is the result

communication between the enterprise and its members. Therein lies the future for branches, and the path forward begins with an in-depth understanding of what matters to your members. The application of the knowledge gained through that understanding should be the foundation upon which branch decisions are made. In this time of changing customer expectations, our industry needs to find ways to sustain and improve the return on their branch investments. Modern site selection methods are at the center of that work. ______________________________ Michael Goman is President of Accubranch, LLC. Fall 2018 | CENTERPOINT | 21

DESIGN

Hanscom Federal Credit Union in Burlington, Massachusetts highlights their creative discovery zone with tablets for members to explore and access their accounts.

Members can also meet with staff in private hotel offices.

I

Why Branches Still Matter

by Gregg Rosen, SPECIAL TO CENTERPOINT

t comes as no 52 percent of consumers surprise that consider access to branches with the adopand ATMs to be important tion of self-serwhen selecting a financial vice channels, finaninstitution. More than 67 cial institutions are percent of consumers preseeing less consumfer to physically go into a ers physically enter branch to open a new actheir retail branch. count, make a deposit, reConsumers of all ceive financial advice, get ages want 24/7, 365 questions answered, apply day digital access. for a loan and resolve acSome are beginning count issues. But we also to wonder, what does know that the majority of Gregg Rosen the future hold for the these tasks can be done via traditional branch? mobile banking so some The consumers have spoken, in fact may wonder why they would actually branches are still necessary — they do go into a branch to do so. matter. Based on research performed Consumers state that they feel hanby Diebold Nixdorf, we learned that dling these tasks face-to-face at their

22 | CENTERPOINT | Fall 2018

local financial institution’s branch gives them more security and a better understanding of their account as a whole. Their questions or issues can be resolved right then and there resulting in higher satisfaction when leaving the branch. Developing an extensive branch transformation plan and understanding the changes required for your branch’s needs is just the start to delivering the best branch experience. Banks and credit unions will have to craft a smooth transition between physical and digital channels with an extensive omnichannel approach. Revamping the digital customer experience has not only become essential but also intriguing for financial institutions. It has given them the opportunity to be cutting-edge and

separate themselves from competition.

So how does the traditional branch adapt to overcome the ever-changing consumer behavior to stay relevant?

GET TO KNOW YOUR CONSUMER First and foremost, we must put technology aside for a moment and reevaluate your understanding of who your consumers are and analyze what they want and need from a financial institution. Where are they banking?

What channels are they using and favoring? Each institution’s client base is made of multiple generations from Baby Boomers, Generation X, Millennials and Gen Z, just to name a few. Financial marketers should use data mining to properly market to each generation. Catering to Millennials should be a high priority as they are currently the largest living generation in the United States. We all know they rely heavily on digital channels for just about everything, but they are also the generation that may need education when it comes to student loans, marriage, or buying a house.

The closer you are to understanding your consumers of all ages, and how they operate, the more accurate your approach in planning will be.

CREATE AN INTERACTIVE AND SOCIAL EXPERIENCE It is crucial to equip your branch with technology and staff members that align with your new goals. We know consumers visit branches less and less

so we have to make an impact each time they walk in the door. Do you want them to stand in line at teller stations or begin a journey and experience that tells your story and allows you to serve them to the fullest? Consider the open path to interactive teller pods or self-service kiosks. With the proper training, that mobility allows your staff to become greeters, customer service / sales representatives and brand ambassadors that are interacting and engaging with your consumers resulting in a personal and less intimidating atmosphere. Find ways to integrate digital technology in the branch and allow all of your services to be visible during open and closed hours. Provide them ways to discover, explore and learn about who you are 24/7. Be engaged with your community, understand your neighbors and local businesses—their local branch should feel like home every time they visit.

DESIGN A BRANCH TAILORED FOR YOUR BRAND Still in this digitally driven era, branches give banks and credit unions the opportunity to communicate exactly who they are and what they can do for their consumers through an innovative branding technique. A well-designed branch that coincides with your brand is imperative when trying to create an unforgettable branch experience. We have found that eliminating barriers and using an open floor concept creates an opportunity for a more welcoming and easy to navigate atmosphere.

Vibrant colors and patterns through

IC Federal CU celebrates its newest location and first Banking Center in Marlborough, Massachusetts. The branch was designed to create a dynamic space allowing members to be educated and assisted with all their banking needs personally or with use of the latest technology.

finishes, wall color, furniture, lighting and marketing can bring a tremendous amount of energy to your customers and even your staff.

So the answer is yes, branches do matter and we are confident that they always will. Financial institutions must adapt to the fact that branches of today will look different and function differently but in the end consumers still appreciate their local branch. While it may take some future thinking strategies, self-service channels and even a transformation to keep branches alive and booming, they are not going anywhere but up. _________________________________

Gregg Rosen is President and Principal of NES Group.

GFA Federal Credit Union recently opened a new branch in Peterborough, New Hampshire. This creative dialogue style branch features pods which allows their team to greet each member and assist them with all their needs. The branch encompasses GFA brand and focus on community.

Fall 2018 | CENTERPOINT | 23

Innovation In Banking Look out for the Winter issue of CenterPoint to read all about innovators in the financial industry that are making an impact!

TOP 3 Fewer than 50% of organizations had plans to deploy robotic process automation solutions, while 70% of organizations planned to support

a conversational AI solution.

<50%

Digitizing products and services, the customer journey and security were Organizations continue to increase investment in innovation strategies in all functional areas.

the top three areas where organizations are focusing digital transformation efforts.

The quest for expertise in

advanced technology

and analytics is increasing industry-wide.

The top innovation challenge is systems integration and legacy technology.

Large tech companies, challenger banks and smaller fintech start-ups were considered to be the biggest threat to disruption.

Technology investment is being made in “old” technology as opposed to “new” technologies.

The greatest threat to banking products was expected to be in the areas of payments and mobile wallets.

According to the 2017 Digital Banking Report

24 | CENTERPOINT | Fall 2018

1-3

YEARS Organizations expect to see a measurable return from their investment in innovation in 1-3 years.

Just over 15% of organizations can prescribe what a customer should do in the future, with 20% having predictive capabilities.

LOAN & ACCOUNT ORIGINATION SYSTEM Lending 360 is a comprehensive loan and new account origination system that supports credit unions with consumer lending, online loan applications, and new account openings.

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Over 1,800 underwriting variables

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Powerful and customizable decision engine

Responsive design member tools

Scalable and easy to enhance

Custom rules on applications, workflows, and loan queues

Let's start the conversation at (877) 744-2835 or CUDIRECT.com/Lending360.

Want to be featured in the pages of CenterPoint? Is your credit union going above and beyond?

CENMTAEXRIMPIZEINT

Contact Managing Editor Kaitlyn Keegan at kkeegan@ambizmedia.com

Fall 2018

l Footage Buck Your SmalBa nk For Your

PROTECTING VULNERABLE CLIENTS LOCATION

Locations You Can Bank On!

By Jay Nuss, Special to Banking New England

st tting The Mo

Ge

Locations

You Can

Bank On!

re To There’s Mo an Of A CU Th The Interior It Attracts The Money

“Bankers’ hours” is a term that at one time implied an easy or abbreviated work schedule.

But, as the old saying goes, that was then and this is now. Ask any banker today if that term still applies and you’ll get Jay Nuss a resounding “no.”

Long gone are the days when banks and their individual branches closed at 3 or 4 p.m. and weren’t open weekends.

The competition is so intense in the industry today, with every bank seeking to capture and increase marketshare, and it goes far beyond brick and mortar locations.

Still, remember the old real estate adage, “Location, Location, Location.” While some customers may be content to conduct banking online, there is still a large segment of the banking customer population for whom a location is a key factor in determining where to conduct business. As the competition increases, we see banks and credit unions expanding their number of

branches, which often means going into a new community or opening an additional location in a community where the financial institution is already established. For the bank CEO seeking to expand his/ her institution’s footprint, location matters.

In planning the establishment of a new branch, multiple factors must be taken into consideration.

Given that a bank’s most significant asset is its brand, the location – and design – of any new bank branch will be heavily influenced by the components of the bank’s brand. And of course, the architecture must be totally consistent with the brand. The catch phrase “designing the structure from the inside out” reflects the necessary perspective on the importance of the brand.

And before getting to that point, there’s the location question.

Where to go? New construction?

Purchase or lease an existing building and build it out to specifications? Given that branch networks can be very expensive to operate, efficiency and productivity must be the paramount considerations when evaluating a specific location. Also, although branch efficiency has increased during the last ten years,

banks can no longer afford the luxury of over-paying for real estate by 10%–20% as they have in the past.

The first step to avoid that outcome is a strong due diligence initiative: research both the community and specifically the neighborhood. What is the history of the business climate in the neighborhood? Is it stable? Has it declined?

Are new businesses coming into the area? If you are looking at an existing structure, what was its previous use? What is the attitude of the community officials toward growth and zoning? This will be especially important if the specific location may require a zoning change – which in turn opens potentially more sites for consideration. It’s worth remembering that what may be suitable for a branch

Although branch efficiency has increased during the last ten years, banks can no longer afford the luxury of over-paying for real estate by 10%–20% as they have in the past.

8 BANKING NEW ENGLAND

may differ from what you’d seek if planning to establish a bank’s main headquarters. The spaces you seek wouldn’t need as much parking, for example.

Certainly, most banking officials

have a network of resources to assist in this initial due diligence.

It makes sense to work with a local commercial broker or someone with deep community ties and knowledge to guide you through the history of the community and neighborhood. Such an individual may also be able to point out the pros and cons of a location, including if there are traffic issues at certain times, environmental remediation considerations, and more – and may

also know of opportunities that are not otherwise known.

And, other considerations under the “Location, Location, Location” banner are the location of potential borrowers, and the location of potential depositors.

There is such an emphasis today on online services that it is tempting to think that a physical location does not matter as much. Most bank officials would agree that a branch should provide a meaningful and interactive experience for the customer through relatively seamless online and offline platforms.

With all that said, however, the importance of a branch’s location and design should in no way be minimized.

When the board room discussions about what community to locate in have concluded, that’s when it’s time to consider the on-the-ground steps needed to bring those discussions to reality.

Good luck with your next location! ■ ____________________________

Jay Nuss is the founder and principal of Jay Nuss Realty Group, LLC.

BANKING NEW ENGLAND 9

Fall 2018 | CENTERPOINT | 25

DESIGN

You Want To Grow?

Pay Attention To The Little Things

by Achim Griesel, SPECIAL TO CENTERPOINT

26 | CENTERPOINT | Fall 2018

M Achim Griesel

any bankers believe: “We’re uniquely positioned to serve the affluent customer. Our service is second to none.”

But remember, your prospects haven’t experienced your service. And few community financial institutions can uniquely serve the affluent class better than regional and national banks.

Real growth requires much more than the false perception that members are privileged to bring their relationships to you. It takes many factors — like brand, product, policies, marketing, employees and execution.

When you try to maintain growth of your member base, focus is often mistakenly on only one factor. But each activity impacts expansion. Some are more important than others and real growth isn’t assured by any one of them. Real growth requires a coordinated system of activities — all connected to each other.

CONTINUED ON NEXT PAGE

Fall 2018 | CENTERPOINT | 27

CONTINUED FROM PREVIOUS PAGE

I’ll illustrate this idea using the airline industry. All airlines have planes, pilots, flight attendants, and luggage handlers.

All transport people and many fly the same routes. So why does Southwest Airlines have a much better reputation than other airlines? Are Southwest planes better or are their people more professional?

No. What Southwest has is a much better activity system.

Michael Porter, in his Harvard Business Review article years ago, defined the activity set of Southwest Airlines. Little things competitors could not or wouldn’t copy were the difference. Its fleet uses only one type of plane, so maintenance is easier, faster, and cheaper. The airline’s unique boarding system allows flights to turn around quicker. All its activity points — reliable and frequent departures, low ticket prices, high aircraft utilization — make Southwest Airlines more profitable than its competitors.

Let’s take this idea to community banking. Like airlines, financial institutions are all relatively the same. All have checking and savings accounts and all use banking systems recognizable from one FI to another. So how can your activity system give your financial institution an edge over competitors?

KEY COMPONENT — YOUR PEOPLE Engage your staff, train them, and allow them to have fun. While working

“Engage your staff, train them, and allow them to have fun.”

with several hundred community-based FIs, I’ve seen what a difference the right branch personnel can make.

• Without changes to marketing or product it’s common to see dramatic customer growth after a branch leadership change.

• Same-market branches, using identical marketing and products, grow at dramatically different rates.

The people component of your activity system probably has the most subcomponents that crucially help or hurt your organization’s growth. Especially in branches, the right people are extremely important.

But if staffs are not well trained, branches may not achieve their growth goals.

BE THERE WHEN CUSTOMERS DECIDE TO SWITCH It’s almost impossible for financial institutions to create the customer need to buy their products. With basic requirements for food and clothing, the need is already there. Bankers can’t create similar needs. However, we can identify people who are likely to need new core relationships or those seeking a new primary financial institution (PFI).

Potential new members become better prospects for your institution when they go through life-changing events — when they move, get married, or change jobs — but it’s difficult to be in front of them at the right time. You can purchase highly-

targeted contact lists for these events, but once prospects are on a list it’s usually too late. An even larger prospect group consists of individuals who are dissatisfied with their current PFI. Yet how can you find those prospects who would consider your financial institution convenient?

The simple answer: The right type of data. Begin by modeling your current members as a starting point for your branch-convenience footprint. If the prospect group is too large, fine-tune by adding characteristics of current members to the targeting model. Most currentcustomer attributes are more reliable than purchased demographics. Add more (big) data to enhance your best-prospect model.

Suppose you could determine which of your branches is convenient for prospects by overlaying their cell phone usage and GPS data? With the prevalence of mobile devices, this has become a very predictive indicator and a great real-world example of big data applications.

Lastly, don’t wait until after the prospect’s life event has happened. Limit your prospect audience by fine-tuning the model while you increase your contacts with these quality prospects. Then you’re likely in front of them prior to a trigger event that prompts them to seek a new primary financial institution.

PRODUCT ISN’T MARKETING’S SILVER BULLET For core member acquisition we seek the single product that answers our growth goals. There isn’t one. While your product is important, it’s only a single component of your entire activity system.

With product, you must consider characteristics like simplicity, customer advantages, ease of sale, profitability, and many others. Ignore any of these factors and growth becomes more difficult or even impossible. A good product may have a variety of different looks if it follows the activity system components outlined above.

Bottom line — consider the little things that make growth happen. They are the important glue that holds your activity system together and make it successful.

Achim Griesel is president at Haberfeld Associates.

28 | CENTERPOINT | Fall 2018

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• Complimentary Breakfast and Lunch and Coffee Breaks • You Choose the Breakout Sessions You Want to Attend • Celebrate the Future of the CU Industry at the Rising Stars Awards Breakfast • Grand Prize Raffle – and Dozens of Other Giveaways

The Great New England Credit Union Show has grown rapidly since its debut a decade ago and has become a must-attend event for anyone who works in the credit union industry.

At the 2019 GNECUS, you’ll: • Learn more about trends in cyber security, member engagement, the future of payments and much more in education sessions led by industry experts. Visit greatcushow.com for more information about each session.

• Discover the newest products and services in a sold-out exhibit hall • Mix, Mingle, and Connect with hundreds of credit union colleagues.

Start a conversation and get fresh advice on how to face your biggest challenges.

So when you join us for the Great New England Credit Show – or, as we fondly call it, GNECUS – you’ll not only come away with information you can’t find anywhere else, but you’ll have a great time doing it.

For information on SPONSORSHIPS and EXHIBITING OPPORTUNITIES at this exciting new venue visit www.greatcushow.com or contact us 860.719.1991 info@ambizmedia.com

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Fall 2018 | CENTERPOINT | 29

A CenterPoint POLL

Is The Traditional Teller Gone?

Has your financial institution done away with the traditional teller?

“Teller is now a function, not a title. All employees can assist members with member service, lending and teller functions from the teller line.”

“We haven’t seen a change as of yet due to the fact that some of our branches are very transactional and, due to older membership, still enjoy visiting the teller line.”

“We use both universal bankers and traditional tellers. They both have a place at our institution. Different branches, depending upon volume and types of transactions do better with different models.”

No (68%)

Yes (19%)

Results are from a poll conducted by CenterPoint magazine 30 | CENTERPOINT | Fall 2018

No, but plans are in the works (13%)

Thereâ&#x20AC;&#x2122;s nothing quite like standing face-to-face with potential new clients. At American Business Media, we produce some of the most successful and largest business-to-business conferences and tradeshows in the nation.

BANKING CONFERENCE All New MGM Spr ingfield

NE Women in Banking October 26, 2018 The Viking Hotel Newport, RI www.nebankwomen.com

BankHorizons November 5-6, 2018 Ocean Place Resort & Spa Long Branch, New Jersey www.bankhorizons.com

Big East Banking Conference November 16, 2018 The VERVE Crowne Plaza Natick, MA www.bigeastbanking.com

3.29.19

Great New England Credit Union Show March 29, 2019 MGM Springfield Springfield, MA www.greatcushow.com

GREAT EVENTS START AT AMBIZ MEDIA Visit www.ambizmedia.com Fall 2018 | CENTERPOINT | 31

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Experience the difference

GFA Federal Credit Union in Peterborough, NH

Bank Design | Architecture | Project Management

905 South Main Street, Bldg B Suite 201, Mansfield, MA 02048 • 508-339-6600 • www.nes-group.com • www.drlarchitects.com 32 | CENTERPOINT | Fall 2018