This month, I will join the board of directors of Citizens Community Bank located in Valdosta Georgia. I am triumphal that they would consider me an asset, and I am ready to roll up my sleeves and help this mid-sized community bank prosper in the coming years. One of the biggest issues they face is what will happen to their branch locations in the coming years.
They are not alone. There are nearly 100,000 bank branches in the U.S. and their growth over the previous decades far outstripped U.S. population growth. But the fact is that we don’t need to go to the branch anymore for nearly all of the transactions that used to be the focus of a branch visit. Online banking, mobile apps and other out of branch channels are so easy to use and convenient that people of all age groups have taken to them. Which is good for banks since the cost of delivering services that way is far less costly than in-branch service.
But wait, it is bad for banks, particularly community banks since they place an inordinate amount of time and effort in offering “friendly, outstanding service” as the cornerstone of their mission. And guess what? Every financial institution has this same mission! So what is differentiating from one FI to the next?
That’s where Citizens Community wants to be different. Rather than assume that banking, as usual, is going to be sustainable in the coming years, they are doing something about it. Starting with one of their four branches, they are moving towards a focus on engagement with customers, not the friendly performing of transactions. Without spending any significant dollars, they emptied the retail area of the branch and cleared out a bunch of space. In the coming months, they will start offering classes in their online services to customers of all demographics.
Instead of making deposits, they will show their customers how to make deposits with their smartphones. Some might ask, “Why push self-service on customers who are already coming into the branch”? That’s not the point. The point is to empower customers to do everyday transactions at a time and place of THEIR choosing when it is most convenient for them. Then encourage them to come to the branch for more important activities like education or financial guidance.
Institutions like Citizens Community area exhibiting Grounded leadership by avoiding the negative anchors (lack of courage and initiative). The project coordinator told me today that there have been some project setbacks and that in the past, it was possible to push aside something new. But she is pressing to make sure it gets started. As they progress on this journey, they will also need to avoid the third negative anchor – a lack of perseverance. I will do my part from the board to assist in fanning the flames of innovation and change. And I will periodically update their progress on this blog, so stay tuned!
