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There are many reasons to consider the micro branch strategy, says Paul Seibert, CMC, VP/financial design at CUES Supplier member EHS Design, a NELSON Company, Seattle.
- Transactions at traditional branches are declining at the rate of 5 percent per year on average, according to Seibert, with transactions evolving to universal associates with cash recyclers or personal teller machines.
- A previous branch staff of 10 can now serve the same base with four to six. Some micro branches operate with just one or two staff persons.
- Small spaces cost significantly less to build and run; it’s also easier to find sites for micros than freestanding branches.
- Small branches can be used to maximize branch network performance in community in-fill markets or small population areas.
- Micro branches are faster to market and can evolve to meet future needs at a lower cost.
- Small locations deliver a high level of expertise and efficiency with retention of the human touch.
Seibert concludes that, in the past, many CUs developed one branch business model and applied it to all markets. The model was sometimes too big, sometimes too small and sometimes just right. For maximum branch network performance, a CU needs to consider all model types and select which is best to deliver its brand experience in a variety of markets.
With 25 years of marketing and communications experience, Stephanie Schwenn Sebring established and managed the marketing departments for three CUs. As owner of Fab Prose & Professional Writing, her new focus is on assisting CUs and industry suppliers with their communications needs.
