Branch Fixtures and Cabinets

Branches, which present the face of every credit union’s brand experience, are being repurposed from process centers to knowledge centers. This evolution is changing the way branches are located, planned, staffed, and operated. New performance metrics for existing and new locations are focused on cost reduction and increased growth, target market share and return on investment. The costs associated with developing these new branch business models and prototypes are changing as well.

A significant cost component in branch transformation is the fixtures/cabinet work. This includes the teller line or teller pods, concierge position, engagement tables, conference tables, general cabinetry and other items. The cost of constructing a 2,500-square-foot neighborhood financial center in a leased space with no drive-up averages $450,000 to $750,00 depending on the staffing plan, target market and performance objectives, technology integration, and fit and finish. The cost of casework ranges from $65,000 to $90,000 depending on quality, design sophistication and number of rollouts.

When credit unions bid this work to general contractors, they often see a 10 percent to 25 percent range in costs. The reason for this difference is quality and how busy the millwork (woodwork) firm is on other projects.

Quality is a huge concern. The branch design firm should be designing and specifying to a level that matches the brand experience objectives and target market expectations. For example, a credit union looking to attract and gain wallet share in an upper middle, mass affluent and emerging wealthy market must typically spend more for its branch in total, and for millwork specifically, than a credit union focused on lower- and middle-income consumers.

Millwork is a key ingredient in the brand experience formula. It is what staff and members use to engage; they touch and feel it and they see the detail because they are just inches away. Before accepting a millwork bid, it is essential to visit bidder’s projects to see what the company can produce.

For example; $3.8 Billion Blue Shore Credit Union in Vancouver, British Columbia, wanted to grow using a share-of-wallet strategy without increasing the number of branches or adding net new members To do so, it enhanced the members’ branded experience. This included elevating the fit and finish of the branch to match up with new target member expectations, resulting in a 25 percent increase in the millwork cost. In eight years the CU met its goal of increasing its assets by 400 percent, while adding just one branch and no increase in total membership.

One of the most discussed elements of fixturing is the teller pod (known by many other names, such as dialog tower or engagement center). These are provided in four basic ways:

1. Modular furniture system that is assembled into a teller or service counter. These are meant to be used as office furniture with easy take down and relocation; they often look off-brand and temporary.
2. Off-the-shelf products that are pre-assembled, but cannot be customized. As a result, these often look off-brand. These are usually easy to relocate, however, and may include integrated electrical and cable management.
3. Pre-engineered units that are customizable. If retrofitting is needed, such as migrating to cash recyclers, these units are relatively easy to change. Some can be branded and refreshed easily, because of the engineered independent cladding, which allows the surface to be easily changed.
4. Custom fixtures can be designed to specific brand attributes and performance objectives.

The following table is an effort to further differentiate these fixture options.

Medium to large credit unions typically select pre-engineered or custom fixture solutions. To learn more about these options, I talked with Mike Seto, CounterSMART sales manager with Evans, an international manufacturer of control rooms and bank teller pod solutions. Evans has worked with a number of financial institutions in the application and customization of his firm’s products. I asked Mike to list the advantages of pre-engineered products, which he describes as follows:

• Large banks and credit unions can benefit from the economies of scale associated with multiple installations of the same solutions.
• Delivery times can be very short once the customization is done.
• While the units are pre-engineered, the surfaces can be customized with different shapes and materials.
• Change is easy in terms of adding elements like cash dispensers or adding shelves offers with disabilities access as required under the Americans with Disabilities Act. This is easy because the engineered frame accommodates a variety of components.
• Installation is easy, as credit unions receive an easily assembled kit of parts.
• Design and construction control is a constant issue for medium and large financial institutions. Pre-engineered solutions are easy to standardize and control across a state, North America or anywhere in the world as they are built by the same firm under a standard set of specifications.
• Electrical and cabling are always an issue in terms of wire management and installation costs. Pre-engineered units require only one electrician visit rather than two. Non pre-engineered units require an electrician to provide the electrical box and then come back to run the wires in the cabinetry and make the connection to the electrical box adding time and scheduling issues. A pre-engineered unit can be connected by the cabinet installer (The only caveat is that in some locations, unions will not allow direct connection by non-union providers.)
• Custom cabinetry can be a very good solution. Some of the issues to think about include: Will it work in terms of accommodating existing and future technologies, ergonomics, security, and maintenance issues? Does the cabinetry designer have years of experience designing financial institutions cabinetry? What are the security, ergonomic, technology and human interaction requirements? What about long-term durability? Pre-engineering means pre-tested, as the manufacturer has installed hundreds of units with significant feedback.
• Consistency is important for members and staff from branch to branch in order to deliver on your brand. Pre-engineered units can deliver consistency through standardization.

We have designed over 1,800 branches and have used each of the four solutions. The right option for each credit union depends on such factors as the number of branches being developed; whether the project is a renovation or a right sizing; the level of desired brand experience customization; millwork builder capabilities; local vs. regional vs. national preferences; and budgets. The right selection will flow from the one overriding factor: your brand.

Paul Seibert, CMC, is principal/financial and retail design, for CUES Supplier member EHS, a NELSON Company, Seattle.