Yesterday, American Banker shed some light on the little in-store branches that could. And will. Despite a history of many opponents declaring them undersized, unimportant, and even blemishes on their brands, many in-store branches seem to be proving themselves to be more profitable and appealing than their traditional counterparts.
With as many as 15,000 to 25,000 customers entering and exiting many supermarkets each week, in-store branches not only attract foot traffic, but allow customers to take one less trip, and provide a clear opportunity for the brand to exude handiness and expediency. As a result, in-store branch traffic often reflects a younger demographic of tech savvy and convenience seeking customers. According to the results of the Bank Director/Grant Thornton LLP 16th Bank Executive Survey, 85% of bank executives are gearing retail efforts toward capturing Gen Y, 20-something consumers and some say these branches may provide bankers with a preview of the future of retail banking.
Nonetheless, in these thrifty times, in-store branches’ greatest attribute might be more related to the balance sheet. Average in-store expenses are often a fraction of the building and operations costs of traditional sites. While the model may not be for every bank, it seems everyone can agree in-store concept is be more relevant than ever.
