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18 n e w h a v e n B I Z | M a y 2 0 2 2 | n e w h a v e n b i z . c o m Space Rethink Chelsea Groton Bank reinvents branches, hosts classes to attract in-person visits, boost business By Michelle Tuccitto Sullo It's a conundrum facing banks around the country and world — with fewer people visiting branches to do in-person banking, what should be done with all that underused real estate? Many banking chains have closed branches as consumers have migrated to more online banking. But a Connecticut bank has come up with a different strategy that its leaders say is working. B. Michael Rauh, president and CEO of Chelsea Groton Bank (CGB), said customers still view branches as important, but aren't using them as oen due to the convenience of electronic transactions. CGB started researching what other banks are doing, and discovered many have opted to have smaller, fewer or more automated branches. Between 2008 and 2020, more than 13,000 bank branches closed across the United States, or about 14% of branches, according to the National Community Reinvestment Coalition, based in Washington, D.C. In Connecticut, banks closed 16% (or 211) of their branches during that same time period, Federal Deposit Insurance Corp. data shows. While closing branches might curb costs, it doesn't generate business, Rauh notes. "We looked at it more like a retailer and said, if we are running a retail store and there is a shelf full of things that people aren't buying anymore, what can we put on that shelf that somebody would buy?" Rauh said. CGB leaders noticed that retailers such as Apple, Verizon or Williams Sonoma are oen packed with people. "What were [customers] going in for? To learn to use a device or cooking tools or to get more out of your phone," Rauh said. "Each of those places still has transactions, but the meat of what they offer is this opportunity to learn and grow and share." It was a eureka moment, and CGB started applying this strategy to its own business. "We started to think about — could the branch be a place more about learning, sharing and growing?" Rauh said. "Instead of cutting expenses, we decided to look at generating more revenue, creating a space people want to come to." Today, CGB branches host a variety of classes and get-togethers on a range of topics. In 2021, the bank hosted approximately 236 classes. It has a "Chelsea University" and teaches students about savings and investments, including buying a first home, preparing for retirement, or saving for college. Teenagers come to learn about writing checks and online banking. Classes cover preparing for health crises and becoming an elderly parent's caregiver. A class focuses on legal and financial planning related to Alzheimer's disease. ere are sessions on using banking tools, such as setting up automatic transfers, and how to reduce the risk of fraud and identity the. e bank also hosts classes for entrepreneurs on creating marketing plans, starting and maintaining a business, tax planning and reporting, record keeping, cash flow and social media marketing. ey also have non-financial classes and events, such as book clubs, book signings and "Coffee with the Cops," where residents can meet local police officers. Cooking classes, massage fairs, document shredding and dog adoption events have also taken place at branches. "We are actually seeing people come into the branches that we wouldn't normally see just to come in and cash a check," Rauh said. "ey will come in to learn about buying a first home or how to take care of an aging parent or how to make Christmas cookies. We have a wide variety of programming aimed at different segments of the market." CGB rents out larger spaces to accommodate the most popular classes, and also will go to business customers to provide programming at their facilities. It also offers virtual classes. Re-imagined spaces To shi from the traditional transactional bank to branches conducive to classes and gathering spaces, CGB's offices have needed a makeover. e Groton-headquartered bank has 14 branches throughout New London County and a loan production office in Hartford County. CGB worked with designers and architects to start overhauling its branches to be more appropriate for classes and conversations. Rather than a wall of tellers, the physical spaces are being redesigned to be more comfortable and home- like, with spaces that can be converted easily to have theater or classroom seating, depending on the needs for a particular event. e redesign still includes spaces where customers can meet for private conversations. ere are videoconferencing areas so the bank can easily bring in outside experts. Lori Dufficy, CGB's executive vice president, chief experience and engagement officer, said they have completed three bank branch "reinventions," a term she uses because it is more than a remodel, but a change in what is being offered too. e first branch reinvention was finished four and a half years ago. PHOTOS | CONTRIBUTED Chelsea Groton Bank financial snapshot 2019 2020 2021 Total assets $1.14B $1.45B $1.59B Deposits $874M $1.1B $1.29B Source: Chelsea Groton Bank Annual Report B. Michael Rauh Lori Dufficy A class gathers at a Chelsea Groton Bank branch, where courses are offered on topics ranging from financial planning and business development to cooking. Chelsea Groton Bank employees regularly meet with customers for individual consultations in private areas, including via videoconferencing.

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