Why FI Leaders Should Think Like a Developer
Just like the leader of a credit union or community bank, land developers always have growth in their sights and there are many strategies that a financial institution could benefit from to expand in an intelligent and financially advantageous way. Here’s how.
Let’s look at the big picture first; you know that your growth depends on increased loan and deposits, and a major factor of those numbers is your ability for new members to open new accounts. Branches are major avenues for creating and retaining new clients.
Having well-placed brick and mortar branches is a necessity by geo-locating the right branch near those targeted new members/customers, so you might as well do it in a way that benefits you the most, from varying angles, just like a savvy developer.
3 Ways to Optimize You real estate efforts
1. Develop a Multi-Tenant Plaza, Occupy and Fill
If you build it, they will come.
When you’re searching for a new prime piece of land, task one is to ensure it’s right for your organization’s needs. Beyond that, you can drive even more foot traffic into your place by making convenient shopping experiences surrounding it. Convenience is valued and appreciated ever more in our modern-day culture. Here’s how you can leverage that.
Small retail outlets, coffee shops, restaurants, an urgent care, nail or hair salon, you name it. You’re creating a place of value for the local community and your branch is included in this hotspot.
Prospect clientele may be drawn in by your new development, peruse shops, and realize that their banking needs can be met there as well. Another thing they can check off their “shopping” list.
This can enhance relationships with existing clients in this market as well. They may have more incentive to drop into your branch on their shopping or errand trips, opening up the floor for more discussion, deepening relationships. Perhaps after their coffee next door, they’ll remember about that new account they’ve been meaning to open.
If the idea of a plaza seems overwhelming, sublet just one part of your building to a boutique business like one of our clients did with a soda shop in Utah!
2. Extra Land Extra Value
Secure a parcel of land that’s larger than your immediate needs require. This doesn’t necessarily mean go all out and grab 20 acres more than you need, but this can be done with a purposeful and lean strategy. Remember, the developer is always thinking ahead, just as you are.
One LEVEL5 client benefitted greatly with this strategy by purchasing a 2 acre plot, then built their new, best-in-class branch on 1 of them. The property value of the empty acre then rose due to the modern branch’s proximity.
The grand finale? This client ended up selling the empty acre for more than what they had bought both acres for.
Now that’s a return on investment for the record books.
When considering site selection, always work with a team who has ample experience and resources in locating the right credit union or bank branch real estate for your needs.
3. Repurpose Your Existing Space & Scale Up Simultaneously
Developers understand the need for new space, but they also know the value of strategically making the most out of an existing space, too.
Use your goals as guideposts, then take due action.
Consider the example story of our client Hoosier Heartland State Bank’s branch transformation and operations center needs in Indiana. They desired to breathe new life into their main branch to better meet the needs of their modern, expanding customer base while also developing a new operations center to support an increase in employees.
This all needed to be done in a way that differentiated the bank as a leader in their community.
They partnered with LEVEL5, who knows bank construction inside and out, and thinks like a developer.
Their branch got an update with a new floor plan, diverging away from traditional teller lines, into a more open retail environment, giving staff a more effective way to interact with members and forge deeper relationships.
Their operations center now fits their long-term staffing needs, and the new exteriors reflected their forward-thinking culture.
Hoosier Bank’s President, Brad Monts added, “We chose LEVEL5 as our partner because of the value they bring to the complete design-build process. Few firms in the country can study markets, address headcount, procure real estate, design and construct facilities like their team.”
Furthermore, their HQ is part of a larger renovated complex, where they have sub-leased space to small business owners that not only benefit their employees, but also help revitalize their home town.
Contact us today for assistance locating the right land or updating an existing branch for your needs. We have experience helping partners get the most value and return from their property.