Worcester Business Journal

wbjournal.com | March 10, 2025 | Worcester Business Journal 13 I visit bank branches less often January brought the announcement of two new branch branches coming to Central Massachusetts: Rockland Trust opened its first Marlborough location, and Southbridge-based Cornerstone Bank announced it would open a branch in Worcester's Tatnuck Square come spring. These local openings are in contrast with a nationwide trend with U.S. banks significantly reducing their brick-and-mortar branches. When polled online, the majority of WBJ readers said they go to a physical bank location less often than they did 10 years ago. How frequently do you go to a physical bank branch location now compared to 10 years ago? F O C U S coming restricted, and not all banks are able to stay open with extended days and hours, said Nicole Almeida, senior vice president, chief of staff at the Massachu- setts Bankers Association in Boston. Mergers and acquisitions are an- other catalyst for bank closures, as a post-merger bank will seek to find effi- ciencies, including by closing banks and laying off employees, Almeida said. "It's always a very mindful, purposeful discussion within an organization," she said. Picking and choosing e cost to open a brick-and-mortar branch varies with location and size, but nonetheless it's a multi-million dollar investment every time, said Christensen. at hasn't deterred Middlesex Sav- ings. e bank boasts one of the highest numbers of local branches, with 25 throughout Central Massachusetts. When selecting a location for a new branch, Middlesex Savings looks for areas that bank leaders think will respond well to a community bank and what it has to offer. Choosing a location is a matter of opportunity: Great locations don't come around oen, especially in smaller Central Mass. towns, said Christensen. "It's almost as much an art as a science," he said. In January, Cornerstone Bank an- nounced it would open a location this spring in Worcester's Tatnuck Square at the site of a former Santander Bank branch. But moving into an old bank location doesn't make the move-in easier, said Ahmed. Branches in the region were built 40 to 50 years ago, and branches need to be updated to reflect changing banking preferences. Branches need fewer teller stations and less space for long lines and need more private space for consulta- tions and one-on-one meetings. "It's what customers need," said Ahmed. More often 6% Less often 67% The same 26% My bank does not have a physical location 1% UniBank opened its second Worces- ter location on Green Island Boulevard across from the Polar Park baseball stadium in the Canal District, part of the bank's strategic investment into the neighborhood. e bank has been asso- ciated with the baseball stadium since becoming one of the founding partners of the Worcester Red Sox, helping to bring the team to the city from Pawtucket. When UniBank learned e Reving- ton apartments were opening across from the stadium, the bank jumped at the chance to open up shop in the build- ing's bottom floor. "We want to be a part of that exciting density building that they're trying to do here," Welch said. Opening the branch is a risk, Welch said, as most of the new Canal District residen- tial developments haven't opened yet. Changing needs Having a physical bank in close proximity is one of the most important factors customers consider when choos- ing a bank, said Christensen. While the likes of checking an account balance or transferring funds to savings have gone digital for most clients, cus- tomers do walk through branch doors needing assistance with complex needs, such as lending and cash management needs and setting up their children for financial success. Today, branches serve as centers for advice, he said. Older people typically utilize branches more than younger ones, Christensen said, in part because they've been using them their whole lives. Long-term cus- tomers will come to the branch just to say, "Hi," to their favorite banker. Younger generations are still inter- ested in branches, he said. Millennials will oen frequent Middlesex Savings because they feel they don't have a strong financial background and to have face-to-face conversations about credit, savings, and budgeting. "ey don't want to come by the branch every day. ey don't want to come even once a month, but they want to know that they've got something," said Christensen. Parents are coming into branches to access financial literacy information and services for their children, said Ahmed, a need banks weren't seeing 25 to 30 years ago. "at's where all banks play a very vital role in making sure that we're providing education, we're providing in- formation, and we're providing tools for our customers to succeed and achieve their goals," said Ahmed. Community-centered banking In-person banking is where relation- ships are formed, and relationships are the linchpin of community banks, said Welch. "at's our bread and butter," he said. A bank's ability to lend and donate to a community, whether through volun- teer or physical dollars, relies on boots on the ground and in-person interac- tions, said Almeida. at is the importance of being locally headquartered for Welch. UniBank an- nually donates about 10% of its income to Central Massachusetts, totalling in about $2.2 million last year. "Banking is a relationship-driven business. So brick and mortar is always going to be important," said Almeida. "In my lifetime, I don't think that will ever change." Because of this interpersonal and economic impact branches have on their communities, Almeida said brick-and- mortar locations aren't going away. "For as many years people have been saying branches are going to go away, they're still here," said Christensen. Bryan Christensen, executive vice president and chief community banking officer at Middlesex Savings Bank Mobile banking is preferred When asked which method of banking they use most, less than 10% of U.S. consumers said bank branches, according to a 2024 survey conducted by Morning Consult on behalf of the American Bankers Associations Generation Mobile app Online Branches Baby Boomers (born 1946-1964) 35% 41% 13% Generation X (1965-1980) 55% 24% 8% Millenials (1981-1996) 68% 12% 4% Generation Z (1997-2012) 64% 8% 4% National average 55% 22% 8% Source: Research performed by Morning Consult on behalf of the American Bankers Association Below: Unlike others, Unibank will never go fully digital, said Welch, as it's just not what customers want. W

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