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n e w h a v e n b i z . c o m | M a y 2 0 2 2 | n e w h a v e n B I Z 19 A fourth branch upgrade is expected to be finished in mid-May. ree more will be done later this year, with the remaining branches to be upgraded by 2024, Dufficy said. Even teller interactions have been redesigned to be more approachable, without big barriers between customers and bankers, she said. Rauh declined to comment on the cost of the physical branch makeover. He does, however, believe the changes have led to new business. "In all of the places that we have done the reinvention, we see the benefits of the newly-created spaces in terms of deeper, longer, more meaningful conversations with customers," Rauh said. at has translated to new accounts and relationships, and referrals for commercial loans and wealth management, he said. "e metrics that we use to determine success are all still the same, we are generating business in a slightly different way," Rauh said. CGB saw its overall assets increase 10.1% in 2021 to $1.59 billion, while its deposit base grew 16.7 percent to $1.3 billion, according to its annual report. Its 2021 net income was $17.4 million, up 33.3 percent from a year earlier, according to its annual report. A fresh focus According to Rauh, Chelsea Groton Bank's reinvention, and the level of focus it has on hosting in-branch events, seems to be unusual for the banking industry. "We haven't seen anybody doing this to the extent we are doing it," Rauh said. "[Other banks] are reconfiguring their branches, but the emphasis is on saving expenses or doing the same old things in a slightly different way. ere isn't anybody who has really rethought the business model in this way." Other financial institutions have heard what CGB has been doing, and have reached out asking the bank to mentor them, Dufficy said. John S. Carusone, president at the Bank Analysis Center in Hartford, said there have been other banks around the country, particularly community lenders, which have been hosting events too. "To the extent they can provide space for activities in branches, it allows them to attract new relationships and clients," Carusone said. "It's one way of preserving the branch system without resorting to strictly electronic banking. ere is a lot of logic to it, and it has proven effective." Middletown-based Liberty Bank, for example, offers credit building workshops, first-time homebuyer seminars, and an Academy for Small Business aimed at helping new entrepreneurs, according to Amy Helbling Crafa, Liberty's corporate communications officer. CGB's reinvention has been years in the making, and the bank has continued to make improvements as it gets feedback. "Every time we reinvent a branch, we are taking feedback from staff and customers and making it better," Dufficy said. Another change through the CGB reinvention has been in technology and making staff more mobile. Historically, bank employees have been attached to computers at a fixed location. CGB has shied to having mobile devices and laptops for staff, so they aren't tethered to one spot, Rauh said. CGB is also moving away from staff members having one role, such as teller or customer service representative. When asked if CGB's strategy might just be the key to helping brick-and- mortar banks not only survive, but thrive, Rauh says, "Yes, absolutely." "at is certainly what we are betting on," said Rauh, adding he thinks long term there is growth opportunity for his bank in Hartford and New Haven counties. "For us, we really think this is a key to our long-term survival. I used to have a boss who said, 'You can't cut your way to success.'" n 0 300 600 900 1200 1500 CT bank branches No. of CT bank branches shrinks 14% over last 7 years 2015 2021 2020 2019 2018 2017 2016 1,235 1,212 1,159 1,129 1,183 1,058 1,093 Source: FDIC When it comes to the financial resources you need to build your business, we offer a full range of commercial lending and cash management solutions to help take your business to the next level of success. $10,330,000 Land Development Loan Acquisition, Site Development Cheshire, CT $12,500,000 Term Loans for Vehicle Fleet Leasing Company Meriden, CT $6,000,000 Construction to Permanent Loan Mixed Use Building Wilton, CT TM Best Small Bank in Connecticut Small Business Cash Management Auto Body Shop Central Connecticut Investment Sweep Services Regional Non-Profit Tolland County IonBank.com • 203.729.4442 Member FDIC Equal Housing Lender

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