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V O L . X X I I I N O. V I I I A P R I L 1 7 , 2 0 1 7 24 B A N K I N G / F I N A N C E F O C U S Financial institutions continue to re-think their branch business model, with new technologies and right- sizing in mind, according to a November 2016 report by Aite Group, a Boston research and advisory fi rm. "Next-generation customer engagement solu- tions are aiming at creating a more consistent experience and advanced functionality across all channels. While digital channels are taking over after the onboarding process, the future of the branch channel lies in new customer acquisition, the sale of more complex products, and more pointed guidance for customers wanting face-to- face interactions," the Aite Group report states. While credit unions are structured diff erently from commercial banks, they're seeing the same consumer trends. " e bottom line is that people want to use diff er- ent delivery channels for diff erent reasons," says John Murphy, president and CEO of the Maine Credit Union League, which represents 58 credit unions in Maine. " e fastest-growing product today is mobile technology. However, people still want to come into the branch occasionally. You'd think the millennials would strictly use their smartphones to conduct business. But they put high value on branch locations. So if you're in the fi nancial services business today, the challenge is to support all of the channels" — ATMs, branches, online banking and mobile applications. Both banks and credit unions continue to invest in locations that better serve the customers. " e demise of the branch has been greatly exag- gerated," says Murphy. " e fact is consumers want multiple delivery channels today, including being able to come into a branch." Branch offi ce as launch pad At Midcoast Federal Credit Union, President and CEO Joe Gervais says its offi ce in Freeport, which opened last summer, and redevelopment of its site in Bath will allow it to expand in both communities. Midcoast was founded in Bath, which still has the highest transaction volume among fi ve locations. "However, we ran out of space and had to decide whether we were going to keep it as our operational center or expand our branch services," Gervais says. "We opted to relocate operations to Freeport and keep Bath as a retail location for our members." Midcoast paid $1.5 million for the Freeport prop- erty and invested another $800,000 to fi t it out. As of July 2016, it serves as its headquarters and has a retail branch. In the meantime, Midcoast is con- structing a new retail branch at the Bath location, to open in June, and will tear down the older structure. at's a vote of confi dence in the value of a physical presence, he says. "We look to have a brick-and-mortar presence in order to serve our current members' needs and engage new relationships" — which includes teach- ing members how to use apps — "knowing that, beyond the initial engagement, their likelihood of using the branch will be limited by our self-service technology off erings," he says. "But it's important to have a physical presence they can go to when needed. So for us, it's a launch pad." » C O N T I N U E D F RO M P R E V I O U S PA G E F O C U S P H O T O / T I M G R E E N WAY Joe Gervais, president and CEO of Midcoast Federal Credit Union, pictured in the Freeport headquarters and branch it moved into last year. Branches are important to communities. A lot of people do Branches are important to communities. A lot of people do Branches are important to communities. A lot of people do Branches are important to communities. A lot of people do Branches are important to communities. A lot of people do Branches are important to communities. 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But people want to see you their banking electronically now. But people want to see you their banking electronically now. But people want to see you their banking electronically now. But people want to see you their banking electronically now. But people want to see you have a presence in their community. — Elizabeth Hayes Infi nity Federal Credit Union

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