32
Wisconsin Community Banker
September/October 2014
The Branch of the Future Is NOW
Mary Lou Santovec
B
anks are discovering that service
delivery methods are changing
faster than teens update their
Facebook page. “The branch of the
future is here,” said Jaime Dominguez,
a vice president at the Brookfield-
based Fiserv. Dominguez made his
remarks at the CBWManagement
Conference & Expo in September.
Driving the changes is a new gen-
eration of consumers, the Millennials
(a.k.a Generation Y), with more and
different expectations. To keep up
with them, banks must redefine their
physical presence.
So why bother? Simply put: money.
This generation stands to inherit some
$6.2 trillion in wealth.
For smaller banks to stand a
chance in the marketplace, they must
address these shifting demographic
and technology trends. Banks will
need to look for new ways to build
identity, strengthen connections, grow
their business, and increase their
profitability.
The one-size-fits-all branch is about
to be relegated to the dustbin of his-
tory. “Each branch serves a unique
market.” This means that bankers
must be able to make strategic deci-
sions for each branch and customize
technology based on customer needs.
Customer experience becomes a key
component.
Dominguez pointed to Apple’s
brick-and-mortar stores as an
example. When customers walk into
an Apple store, it’s all about playing
with the products. They will call in an
expert, a sales clerk, when they want
to purchase.
For community bankers, the
branch “needs to become a part of
the experience ecosystem,” which
Dominguez defined as bringing
all the components together. It’s
no longer a stand-alone, brick
and mortar structure. “The branch
is a cohesive unit of who you are as
a whole.”
Defining a Generation
The Millennials range in age from
18 to 33 and will represent 95
million — or 36 percent — of the
U.S. population by 2020.
They sign up for new services faster
and respond more to the experience
rather than the product. Other charac-
teristics: Millennials are more likely to
switch product loyalty. They’re more
comfortable online. They’re on the
move and mobile.
The Millennials are concerned with
getting the information they want at
the time they want it. Whether that’s
on a Smartphone app, on their com-
puter, over the phone, or in-person,
what matters to them is instant
CBW Legal & Compliance Consortium
Community Bankers of Wisconsin offers its Legal and Compliance Services Consortium to provide
CBWmembers with fast, easy access to compliance and legal services at a flat annual fee.
Godfrey & Kahn renders written or oral legal advice that can be maintained in bank records and provided to regulators.
Consortiummembers become clients of Godfrey & Kahn.
As a member of the CBW/Godfrey & Kahn Legal Consortium, we recently were provided with
unsolicited documents from Godfrey & Kahn addressing three hot topic issues: A “Loan Officer
Compensation Policy” as required under new Reg Z rules; A Guidance document that addresses
new “CFPB Mortgage Servicing Rules”; and a combination of a “Social Media Policy” and
a “Social Media Risk Assessment.” These are rules that 260 Wisconsin community banks are
trying to get their arms around and implement prior to their next exams. The Legal Consortium
continues to provide our bank a great value when we are provided this level of service.
— Jerry L. O’Connor, President & CEO, The National Bank of Waupun
Consortium members can rest assured that they have specialized legal advice
backing up their unique compliance questions and concerns.
For more information, contact Jami Erickson at
