BRANCHING HOW IT SHOULD BE

Last week we had two back-to-back experiences that underscored the power of independent banking with its flat management structure and ability to control branch quality. As we were mystery shopping branches, we always spend 15min observing operations. We like to see layouts, traffic flow, loan and deposit promotions and personnel. We strolled into a very nice looking branch of a large multinational and were impressed by the surroundings. This branch was just recently redone and had the "open branch" feel that we love, updated furniture and the now required plasma screen showing all the things we could be doing with the bank. We "tested" the "concierge" with 2 questions: how do we make an address change on our checking account and what are your 45 day CD rates? At 10:30am, we were the only people in the branch and there were 4 tellers, 2 new accounts people and 1 greeter. Everybody looked busy, yet we were asked to wait for 5 minutes while they completed some work. 2 staff people fumbled around for another 7 minutes before coming up with a rate (no one asked us any further questions), at which point we were directed to the wall phone to do the "press-for-account-changes dance." This branch experience inadvertently sent a message that we were an imposition. We contrasted this experience with our next stop at a 3.5-year old community bank. The 900 sq. ft. branch lacked adequate parking, was cramped, had no sitting area for customers, had outdated furniture and barely had an analog clock. This location left much to be desired, expect for one thing – the place was packed with customers (which explained the parking problem) and abuzz. We had just walked in the door when an account officer, passing across the floor, stopped and inquired how she could help. This happened 3 more times while we waited, one of which was an inquiry by a freed up teller asking us if we knew about their 3 month CD promotion. Taking the offensive, we drilled down and tested the teller on day count, breakage fees, registration and wire transfers and he passed on all counts. The office was one of the happiest, most lively and seemingly knowledgeable branches we have been in all year. We waited 10 minutes and were "touched" an impressive 4 times. If we cared about service, this was the place. The quality of the personnel served to not only provide for a more meaningful customer experience, but one that is less rate sensitive by its very nature. While a bank spends a fair amount of money opening a branch, all the plasma screens in the world do not count for much if staff is not trained and has a positive attitude.