Banking Trends Signal a Push into the South

WRITTEN BY
Don Mallory
VP, Client Services

A notable banking trend is the expansion of branch networks into the South.

Whether extending into new territory or expanding an existing branch network, challenges in expansion include entering new locations where there’s a lack of banking customer data, as well as developing non-traditional bank spaces or building from the ground up.

While an expectation of traditional Southern hospitality makes sense, it’s also critical to anticipate new challenges for branch builds and development as well as branch marketing.

New locations, new branch marketing challenges

Much of recent banking expansion came through acquisitions and then systematic branch rebranding, with some branches closing. That included its own set of challenges, starting with ensuring branch rebranding consistency throughout diverse regional networks and a variety of footprints.

A significant part of the southward trend, however, includes entirely new branches in urban, suburban and rural locations where non-traditional retail spaces are transformed into branches or branches are built from the ground up.

This can get complicated for financial institutions, both externally and internally.

A playbook for branch development, localization

Is there a branding and execution playbook that’s a Point A for new and renovated branches? If not, make one. Rather than approach a facility build or rebrand as a set of components, start with your brand and build a targeted experience from the very beginning.

Of course, there will be designers, architects and general contractors for renovations and new builds. But, critically, also prioritize branding experts and experienced project managers who will focus on the customer and associate experiences as well as project efficiency. There are a lot of moving parts, and this complexity can cause stress, communication challenges and overlooked issues.

"It's not just about cutting costs but also making smart trade-offs that delight customers and staff."

Consider a modular “kit-of-parts” approach, which provides consistent required elements but also allows for customization for all branch sizes, ages and high- or low-value locations. This approach also supports speed-to-market and more effortless scalability across diverse geographic regions. 

This can lower costs and complexity, and capable project management can skillfully guide strategic localization and customizations.

And never overlook the importance of value engineering throughout the process. It maintains design integrity while reducing costs and increasing ease of installation. It’s not just about cutting costs but also making smart trade-offs that still delight customers and staff. Elements can be cut or adjusted on-site to accommodate the varying branch sizes and layouts, while replacing expensive materials with proprietary versions that look the same but are less costly to procure and ship and easier to install.

Prudent value engineering and expert program management save money without sacrificing brand integrity or reducing functionality or the customer experience.

Banking trends towards flexibility and future-readiness

While scaling a design means seeking efficiencies, it doesn’t mean creating cookie-cutter solutions. It doesn’t mean sacrificing custom touches specific to each customer segment.

Whether building from scratch or repurposing an existing space, the physical layout must be adaptable to meet evolving customer expectations, operational demands and regional identity. This includes incorporating smaller, alternative branch formats, such as micro-branches or mobile branches that reach underserved communities.

Cadence Bank located in Tupelo, Mississippi.

Your branches should seamlessly blend traditional face-to-face services with digital banking innovations. This means incorporating flexible spaces that can transition between self-service kiosks, digital consultation areas and private meeting spaces for personalized advice.

In legacy buildings, thoughtful renovations can create multi-use spaces that accommodate modern banking industry needs without sacrificing the unique character of the property.

Such adaptability ensures that branches remain relevant across various markets as technology and consumer behaviors change.

Community engagement and customer experiences

Connecting your bank to its new community is important, and localization efforts can feature a wide range of customized touches.  

These might include a wall that pays tribute to a beloved, nearby sports venue and its neighborhood, or it could be a brand activation at a local event or local imagery that can be stylized as art. 

Digital signage and branch technology can also reflect local events or messages, making each branch feel uniquely tuned to its neighborhood.

"By tailoring service offerings and branch events to local interests and needs, banks can transform their locations into community anchors rather than just transactional spaces..."

A proficiency with creating and delivering modular kits of parts also provides opportunities for localization and customized branding. Maintaining brand standards and consistency are always important, but your variety of bank branch types focus on different customers and their diverse wants and needs. 

And there’s always outreach. Your bank can position branches as active community partners. In the South, relationships and personal connections are highly valued. By tailoring service offerings and branch events to local interests and needs, bank's transformation in community anchors rather than just transactional spaces by hosting:

• Financial literacy workshops
• Local business networking events
• Community initiatives that provide real impact

This holistic approach not only enhances customer loyalty but gives your bank a key differentiator among increasing competition. Banks expanding into the South must strike a careful balance between brand consistency and local authenticity. With the right strategy, partnerships and mindset, each branch can become more than just a building. It also can become a community connection point and a long-term driver of customer growth.