Future-proofing credit unions: Data-driven design strategies for success

As credit unions plan for 2025 and beyond and assess their space needs, I spoke with Josh Schoenemann, VP of Design, to discuss the latest trends and technologies.

Where do you start when designing a credit union?

I start with data. Data-driven designs are what credit unions need in order to deliver what members are seeking. I extract data from visioning workshops, surveys, research and due diligence to move forward with initial designs from an analytical perspective that ensures we have all the context needed to help our clients make the right decisions for their institutions.

How have you seen the industry evolve in recent years?

We’ve all seen the move from branches as the place for transactions to branches as the place for interaction and advisement. That’s changed how space is used and designed. We’re also seeing the stigma of automation beginning to decline, as younger members are accustomed to it—and even expect and desire it. However, while members are largely willing to interact with ITMs, for example, many community-based credit unions continue to hold fast to tradition and fear the perceived “signal” a move to ITMs would give.

Are smaller, community-based credit unions right to fear technology like ITMs?

No. ITM’s have been integrated into designs for community credit unions across the nation. While many have capitalized on the efficiency, cost-savings and innovative service delivery, I think there’s another side to the story for those institutions that have not yet embraced ITM technology. While efficiencies can be achieved with ITMs, they don’t make your staff irrelevant. In fact, personalized financial advice and counsel are more critical than ever. Moving tellers to play more of an in-branch consultation role often better meets the needs of consumers. Additionally, though ITMs can reduce the need for formal teller lines, there is an opportunity to use, rather than reduce, your financial institution’s square footage. We’ve found that ITMs free up space to build flexible workspaces that can be used for these more consultative conversations.

How will this affect customer interactions and the design of branch spaces?

The purpose of the physical branch has changed. Today consumers have no trouble using electronic banking and ITMs for day-to-day transactions. But, when the big decisions come around—like a house, a car, a family—that’s when you’ll see them walk through the door. They’re not looking for a teller—they’re looking for a partner, a trusted resource, an advisor. Those conversations don’t happen over a teller counter, they happen in an office or on a couch. Lastly, while it’s true that physical interaction with tellers for day-to-day transactions will be reduced, your consumers will still be greeted by a friendly face, and work with a real person, just virtually. We’ve all become accustomed to virtual conversations—they’re no longer an inconvenience or an afterthought. But when a consumer needs that face-to-face interaction, you’ve freed up both the staff—and the space—to make it happen.

How can credit unions both honor tradition and embrace technology?

It’s a fine line to walk, and it takes diligence, data-driven insights and fact-based findings. There very well may be credit unions that serve specific audiences wherein a move to embrace technology may threaten member relationships. But, far more often, we are seeing credit unions that want to speak the language of the next generation of members. That doesn’t mean abandoning values, or the history upon which your institution was founded, it means bringing that same message to a new audience utilizing the tools and channels they’re listening to.

What trends are on the horizon?

Unfortunately, the largest trend is a bit of a forced trend. The cost of construction is high and it means designers like me need to do more with less—both in terms of square footage, as well as high-end finishes, etc. I go back to the need for data. If resources are scarce, you want to be devoting them to the things that will move the needle, and guessing just won’t cut it. My advice to any credit union exploring a new build or a refresh of an existing credit union is to invest in research and due diligence.

How can credit unions future proof their designs?

No one has a crystal ball, so if you’re going to make an investment in designing a new or reimagined space, you want to think about modularity and flexibility of space to adapt and adjust to the needs of members. Do you need three private offices, or would it make more sense to have 6 semi-private workstations? Do you need a private conference room for staff use, or is a flexible space that can be used for meetings (both internal and community-based) more appealing? The bottom line is you don’t want to design yourself into a corner, so you need a partner who is thinking five steps ahead and anticipating the trends of tomorrow you should be designing for today.

What questions do you have? Ask Josh at josh@lamacchiagroup.com.