Consider these 5 Tips for Branch Expansion from our CEO:
- Let customer/member behavior, not legacy footprints, steer expansion decisions
The former playbook of density by inertia won’t win today’s market. Even as digital adoption grows, on-the-round demand persists: a recent survey showed one-third of U.S. consumers still consider branches essential for their banking needs across age groups. That’s consistent with major banks continuing aggressive branch buildouts despite high digital usage. Consider layering mobile, transaction and appointment data with real-world demographics and foot traffic before green-lighting sites. It is wise to treat your expansion goals as meeting evolving customer/member behavior vs. defending an arbitrary square footage goal.
Takeaway: The dollars aren’t where the logos are. They are where customer/member conversion and long-term relationship form.
- Modernize the branch model before you expand the network.
Branches still matter but not as they were 10 years ago. Today’s branches integrate consultative spaces, service appointments, digital complementarity and accessibility services like ASL and foreign language interpreters. Reimagine branches as experience hubs with space for consultation, financial education zones, self-service kiosks, and digital support desks. Prioritize modular design so that the branch can evolve with customer/member feedback post-launch.
Takeaway: Over 90% of interactions start digitally but convert in person. Your spaces must reflect a blended customer/member journey.
- Build your geospatial playbook and trust the data
Dedicated, data science-driven data, not sales hunches, helps to identify where new branches will thrive. Invest in spatial analytics that bring mobility patterns, competitive presence, social-economic shifts, and channel behavior together seamlessly.
Takeaway: Precision decisions knock down execution risk, shortens decision cycles, and justifies board-level capital calls.
- Use regulatory shifts to streamline expansion and relocation
The FDIC’s final rulemaking on branch establishment and relocation issued in December 2025 is explicitly designed to reduce friction in the branch approvals process. Don’t wait for internal process breakdowns. Update your compliance playbook now for the new rule set. Push branch and relocation applications earlier in the planning cycle to take advantage of expedited processing. Help your real estate and government affairs teams understand the new regulatory framework.
Takeaway: Faster approvals equals better timing, lower holding costs and improved developer/landlord partnerships.
- Balance branch expansion with digital investments for a true omnichannel experience.
Every branch expansion conversation must start with “What does our digital funnel look like?” Digital banking markets continue to surge. AI + cloud transformation aren’t niche bets anymore. They are core operational infrastructure. Therefore, align the user experience across mobile, call center, and in-branch platforms so that customers/members experience continuity across all touch points. When possible, utilize AI and analytics to anticipate needs before customers/members walk into your branch.
Takeaway: Branches without connected digital context underperform. On the flip side, digital without a physical branch presence under engages relationships with your customers/members making them susceptible to moving their money elsewhere.
Looking to remodel an existing branch experience or looking to start a branch expansion project? Contact us to speak to one of our team of branch solution experts. We are here to help.
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