Branch Design Element FCU s non-traditional branch redesign

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1 Branch Design Element FCU s non-traditional branch redesign Linda Bodie, Chief + Innovator 2013 CUNA Excellence in Operations, Sales and Service July 22, 2013

2 Branch Redesign Turning transactions into conversations A friendlier way to bank On October 22, 2012, WV United Federal Credit Union formally changed its name to Element Federal Credit Union. In addition to our name change, we completely revamped our main branch to match our brand and philosophy. It was a huge undertaking, but the results and feedback from our membership has been overwhelmingly positive. Along with the fresh, new design, we ve achieved improvements in our key ratios and overall profitability. Non-Traditional Elements That Enhance Member Service GO Kiosk Element FCU deployed an ipad kiosk solution in both of its branches. The kiosk handles transaction requests, form requests, check deposits, member applications, loan applications and a host of other services. The kiosk is efficient, green and just plain fun to use. To see more about the Kiosk, visit and click on the GO button to see how it works. Element Cafe When working on our branch redesign, we incorporated a full cafe and lounge area for our members and guests. Element offers free coffee, tea and hot chocolate and highlights local bakeries and food establishments in our area. Members and guests can use the cafe to access our free wi-fi, do some banking or talk to a team member about our products and services. Call Ahead Banking While call ahead banking has always been a staple at Element, it was never at the forefront of our service offerings. Now, with the GO Kiosk, we ve made it easy for our members to schedule

3 transactions ahead of time. This reduces in branch wait times and improves staff efficiency. All of this results in happier members and employees. Facebook Transactions Transacting business on Facebook is not necessarily a branch enhancement, but Element knows at least 60% of our members have Facebook accounts. On July 19, 2013, we officially deployed apps to allow check deposits, loan applications and member applications from our Facebook home page. Visit to see our apps. Wii/Gaming Everyone knows the whole family likes to come to the credit union. It s the way things happen sometimes. Element s philosophy is to entertain folks of all ages while financial business is being conducted. We have a Wii and Smart TV s with apps installed to allow our members and guests to play some games to pass the time while they wait. This is a big hit with the kids and even some adults. Self Service Technologies Element deployed two very new services in its main branch within the last 8 months. First, we enabled air print. If a member or guest is using a credit union ipad or their own mobile device, they can print items to our wireless printer. It s easy to connect and simple to just select print. Second, we installed a wireless ScanSnap scanner for members to use with their Apple or Android phones and tablets. When members install the ScanSnap app on their device, they can gain free access to our scanner and digitize their paper documents free of charge. We ll even shred their paper after they complete their scanning. See a demo of the wireless ScanSnap here

4 Branch Differentiation Transaction Center Element demolished the dreaded teller line and installed a transaction center to handle member transaction requests. The transaction center/dialogue tower enhances member communication and interaction. There is no longer an us versus them mentality. There is no wall. We are standing side by side with our members, and our members feel closer and more connected to us. We rerouted the drive-thru tubes and made them an integral part of the architectural appeal of the lobby. People love to watch the tubes, so we placed them front and center for all to see. It was also operationally efficient to route the tubes to the teller area. Tellers can service inbranch and drive-thru members with ease. Element Cafe The Element Cafe isn t just a place to get free coffee; it s a meeting place. Lots of nontraditional meetings and events take place in the cafe. Members can play games on the Smart TV in the cafe. Open the Angry Birds app using hand gestures and start playing with ease. Need to talk about a loan, have an account issue or other item? Take it easy in the cafe in a private area that s more casual and conducive to a friendly conversation. Want to hold an after hours event to host a community event? This is the place to go. The chalk wall - yes, we painted a wall with chalk-friendly paint that makes it perfectly legal and acceptable to write on the wall. It s great for welcoming guests and just letting the kids get a little crazy if they want. Color Matters Element s branches are decked out in full color. There is no builder beige in our branches. Members and employees feel the warmth associated with color, and it affects attitudes more than you think. When you add a little color, it makes a world of difference. Customized Products and Services Our branches are equipped with large screen televisions and monitors. We are use these screens to highlight the extreme personalization that comes with being a member at Element.

5 For example, we offer instant issue debit cards with custom backgrounds. We highlight these designs in our ads. Lots of members will stand in the lobby and watch the slideshow. Many will ask for a new card design. To see our assorted custom debit card images, visit our Flickr page at Measurements of Success Member Growth Element established a monthly benchmark of 60 new member accounts. We have exceeded this goal each month since rebranding and redesigning our branch. In April 2013, we attracted our highest number of members ever at 127. We also planned for an engagement level of at least 3 products and services for 70% of these new members. We have exceeded this goal each month since establishing this benchmark. Prior to October 2012, Element averaged 47 new accounts per month and did not have a goal or measurement for new member engagement. Profitability Profitability has been a real challenge in the last few years. Things have settled down quite nicely since our branch and brand redesign. Here s how the numbers add up: Metric June 2012 June Goal ROA 0.69% 0.91% 0.70% ROI 9.14% 11.50% 8.00% Loans/Shares 90.98% 95.54% 90.00% Can these numbers be attributed solely to our branch redesign and rebranding? Probably not 100 percent, but we believe these were key in achieving these numbers. We had a plan; we executed it and the results can t be disputed. Efficiency Element has paid close attention to its efficiency ratio. According to Callahan and Associates, the efficiency ratio quantifies how well a credit union is using its expenses by measuring how much the credit union has to spend in order to generate $1 of revenue. The metric is similar to the operating expense ratio, and a lower value is better. Our branch design has lowered our expenses by facilitating a greater utilization of technology and process improvement. We have a better workflow and use our resources more wisely.

6 Element has achieved a 5 Start rating from Callahan for its efficiency rating Element has achieved a 5 Start rating from Callahan for return of the member. How Did Branch Redesign Contribute to Our Success? More Tech Savvy Members are Using Our Services Online banking usage climbed from 22.82% (June 2012) to 24.99% (June 2013) Text banking usage climbed from.23% (June 2012) to.73% (June 2013) edeposit/ideposit usage climbed from 2.24% (June 2102) to 6.48% (June 2013)

7 Younger Demographic is Joining 47.8 = average age of new accounts prior to 5/31/ = average age of new accounts opened between 6/01/12 and 5/31/13 Greater Efficiency and Profitability All metrics indicate a more efficient operation.

8 Additional Information and Links to Supporting Documents Branch redesign photos: Branch redesign video: Custom debit cards showcase: GO Kiosk: Facebook (apps): About Element FCU Element FCU was founded in 1978 to serve employees of the West Virginia Department of Welfare. Over the years, the credit union evolved and expanded its field of membership to multiple SEGs and communities designated as underserved areas. Today, Element has 4,800 members and $27 million in assets. Element FCU serves its members with two physical branches and 13 employees.

9 2013 CUNA Excellence in Operations, Sales & Service Awards WORKSHEET Branch Design: What non-traditional elements are you deploying in new branch and remodeled branch facilities to enhance member service? GO Kiosk ipad kiosks to facilitate electronic transmittal of all forms and transaction requests within our branches Cafe branch cafe for coffee, tea, hot chocolate, free wi-fi and ability to transact business Call Ahead Banking schedule transactions by calling/texting/submitting electronically in advance Facebook transactions using Facebook to send a check for deposit, apply for a loan and open an account. Wii/Gaming fun atmosphere that entertains folks of all ages during wait times Self service technologies bring your own ipad/iphone/android and scan your paper documents to your device using or ScanSnap scanner and ScanSnap app. What have you done to push the envelope and differentiate the look of your branches? Transaction Center (teller pod) demolishing the dreaded teller counter and replacing with a dialogue transaction center Cafe developed a cafe area for drinks, wifi and hanging out Colors vibrant colors and designs to attract visits Highlighting customization features debit cards, paperless technologies What measurements have you established to determine the success of your project/design? Examples may include: Member Growth; Ratio of Members/Potential Members; Branch Profitability, etc. Member growth Profitability Efficiency Ratio Compare your final results to your goals, including time frames for measurement period. Please be specific with your numbers and how the final results measured up to your goals established.

10 Please list three specific examples of how this practice contributed to the success of your credit union. More tech savvy members joining Younger demographic Greater efficiency and profitability Provide any additional relevant information to support your entry. Branch redesign photos: Branch redesign video: Custom debit cards showcase: GO Kiosk: