By Tom Kennedy
Digital banking may be faster, but it hasn’t replaced the physical branch. Instead, it has redefined its purpose and value in the customer experience. While mobile and online banking continue to grow, research shows that customers still value in-person experiences for important financial decisions. In fact, a recent J.D. Power study revealed that 78% of banking customers visit a branch at least once a year, and 60% prefer face-to-face interactions for complex services like mortgages or investment advice. Those are some compelling figures.
This tells us something important: even in a tech-driven era, people still seek human connection, especially when it comes to their money.
Moreover, according to Bankrate, nearly half of all consumers report financial anxiety, and 69% feel more confident discussing money matters with a person than with a digital tool. Trust remains a cornerstone of customer loyalty, and branches play a key role in building it.
Is Your Branch Supporting That Trust?
Many legacy branch environments simply weren’t built to serve the needs of today’s customer or staff. Dated layouts, long lines, and limited-service models can hinder the very relationships that set community financial institutions apart. A branch that feels impersonal or inefficient can drive people away, while a modern, welcoming space can do the opposite.
When assessing your branch, ask yourself:
- What’s a customer’s first impression when they walk in?
- Is the space bright, clean, and clearly branded?
- Are they greeted and guided—or left to navigate alone?
These small details add up. And increasingly, they determine whether a branch is seen as trustworthy—or forgettable.
Design with Purpose, Grow with Confidence
Modernizing your branch is more than a cosmetic upgrade, it’s a strategic move. Done right, a branch refresh can make every visit more intuitive, engaging, and productive for both customers and staff.
In fact, a study by The Financial Brand found that refreshed branches see up to a 33% boost in customer satisfaction. And institutions that incorporate personalized, tech-enabled experiences enjoy a 20% higher customer retention rate.
This matters even more when courting younger generations. Around 75% of millennials say they’re more likely to visit branches that feature modern, interactive spaces—think self-service tools, touchscreens, or digital kiosks. The goal isn’t to replace people with tech, but to use technology to support a more efficient, human-centered experience.
Efficiency Pays Off—Literally
Branch modernization doesn’t just help customers, it helps your team, too. Improved layouts and smart tech can reduce transaction times by up to 40%, freeing up staff to focus on value-added, cross-selling conversations.
According to Deloitte, modernized branches with integrated self-service tools and optimized workflows can cut operating costs by up to 25%. They also report a 15% increase in cross-selling opportunities, thanks to more efficient and focused employee-customer interactions.
Boost Foot Traffic and Brand Perception
An updated branch can literally open the door to new traffic. Research from Placer.ai shows that refreshed locations experience up to a 25% increase in walk-ins. But what really matters is how customers feel once inside.
Design that reflects community values—local artwork, cultural elements, sustainability features—deepens customer connection. And customers notice. Many institutions report improvement in brand perception after a refresh, with customers more likely to associate them with innovation, relevance, and trust.
What Makes a Great Branch Refresh?
Successful branch design is about blending form with function. Here are the key ingredients:
- Technology Integration: Digital signage, self-service stations, and AI tools enhance convenience while offering real-time support. Behavioral analytics can also guide smarter floorplans and more personalized service.
- Localized, Branded Design: Infuse the space with elements that reflect your community while maintaining brand consistency. Sustainability features like LED lighting or solar panels can also attract environmentally conscious consumers.
- Flexible, Multi-Purpose Layouts: Design spaces that can be easily reconfigured for consultations, community events, or financial education sessions. Open, welcoming environments encourage exploration and engagement.
Strong ROI, Stronger Relationships
The payoff from refreshing your branches is clear. Many banks report higher foot traffic, longer visit durations, and more meaningful conversations.
Better yet, a modernized branch can drive real business results. Some institutions see a 10–15% increase in revenue within the first year. When customers feel welcomed, supported, and inspired, they’re more likely to stay—and to grow their relationship with your institution.
Final Thoughts
Modernizing your branch is no longer optional, it’s a critical part of remaining competitive. Yes, digital channels are essential. But the physical branch remains a powerful touchpoint—a space where trust is built, advice is shared, and relationships are deepened.
In today’s landscape, it’s not just about having a branch—it’s about having the right one.
About the Author:
Tom Kennedy is the president and CEO of La Macchia Group, a comprehensive consulting and design-build firm exclusively focused on financial institutions to create strategic, brand-driven spaces that enhance customer experience and operational efficiency. As President, Tom oversees an integrated approach to design/build that combines market analysis, design, construction, and digital innovation to help financial institutions evolve through custom, future-ready environments.