What results can you expect to get out of a Branch Transformation? Will you see a ROI? What is the value proposition you can present to the executive team or board members?
It is a large investment for any financial institution, so identifying concrete outcomes is important for building the business case.
And, how can you know your project was successful if you don't define what you're trying to achieve?
To help you define success and start building a compelling case, here’s a list of 11 ways a Branch Transformation can bring real value to your financial institution.
11 Core Benefits of Branch Transformation
While there are many different ways to achieve real results, the underlying goals of most Branch Transformation projects are similar.
Done right, it can help you:
1. Improve the physical look of your branch
The most obvious benefit is improving the physical look of your branches. First impressions and the look of your branches matter a lot. Consider hotel reviews - the first thing most people comment on is the overall look and feel of the hotel. Does the hotel feel outdated, giving a drab feeling - or does the decor of the space enhance the overall experience and create a strong first impression?
2. Improve the branch experience to drive greater engagement, loyalty and profits
While closely tied to the physical look, improving the branch experience is more about the client flow and journey while in the branch. It should help you remove the barriers to achieving an exceptional client experience.
3. Increase client adoption of new services (e.g. mobile banking, online bill pay, etc.)
Most financial institutions have an average of 40% – 60% of existing clients that are unaware of, or simply don't use it's online services. Educating and helping these clients get started can be a real benefit. It offers several ways you can significantly increase adoption rate, such as adding education stations, interactive digital tools, tablets, and promotional digital signage.
4. Improve the delivery of services
Whether you are looking to increase the volume of face-to-face interactions with clients, or move more transactions to self-service or automated channels, improving your delivery of services is always a win. It should help you define the ways your delivery can be better, then give you the right tools and equipment to achieve it.
5. Create a signature look for your financial institution
Cookie-cutter, "me-too" branches are a thing of the past. A successful transformation will help you identify and deliver what makes your financial institution different from the rest, and convey the unique attributes of your brand in a physical space.
6. Improve staff efficiency/productivity
It can introduce new technologies, layouts, and capabilities to make staff more efficient and productive. That might mean adding teller cash automation machines, moving to a universal staffing model, or centralizing operations to reduce employees on the front line.
7. Sharpen overall sales effectiveness in branches
In addition to helping staff be more efficient, it should also provide new tools, equipment, layouts, and methods that help staff build relationships and facilitate conversations, naturally resulting in increased sales effectiveness.
8. Reduce costs related to branch overhead/expenses
A transformation offers several ways to lower the cost of running branches. Moving to a mixed-use branch, employing analytics and software to optimize technology you already own, or even finding ways to lower service costs can all be realized through the process.
9. Increase branch traffic and new clients
A Branch Transformation will help you drive traffic by finding ways to add curb appeal, build buzz, and attract new clients. You can use marketing tactics to build buzz before, during and after your transformation, increasing awareness and curiosity about your brand.
10. Improve connections to the community
Finding ways to tie the community into your branch can also be an outcome achieved through Branch Transformation. Adding community rooms to the branch, or even something as simple digital signage can show your community support.
11. Increase products per household/product awareness
The most important result a transformation should provide is increased branch profitability through new account openings and increased products per household. All of the intangible benefits ultimately deliver a strategy that will increase your branch effectiveness.
The reasons above are a great place to start building your case for Branch Transformation. Did we miss any? If you have others you would like to share, add them in the comments!
Need help crafting your strategic plan? We can help you create a strategy that meets the specific needs of your financial institution and executive team. Contact us here whenever you're ready.