The High-Value, High-Margin Opportunities Inside the Building

Customers have moved more of their everyday banking needs online and to self-service channels. Branches, meanwhile, are evolving into specialized hubs for high-value products, problem-solving, and community connection. Financial institutions are hoping that by reframing the role of the branch, they can capture more of the high-margin business that high-touch customer interactions can yield.

Within these physical locations, financial institutions are increasingly focused on services like lending, wealth management, and small business banking, which depend on the expertise and guidance of trained staff. In-branch conversations deepen relationships, increase products per household, and drive long-term profitability, says Benjamin La Macchia, senior vice president at La Macchia Group, a branch consulting and design-build firm based in Milwaukee, Wisconsin.

“Approaches like this allow for natural opportunities to upsell other products and services, reaffirming why being a customer’s primary financial institution is so critical,” he says.

At Chase Bank, each branch is tailored to fit the needs of its community—whether providing extra transaction windows for busy merchants in high-volume locations, private spaces for small business advice or wealth management discussions, or community centers for local events and financial workshops, says Tom Horne, head of consumer branch banking at the New York City–based institution.

Chase has several branch formats across its U.S. network of 5,000-plus branches and pro-vides high-value, high-margin services in each of them. “We decide on branch formats and locations by analyzing market data, economic trends and local insights, making sure we offer the right resources where they are needed most,” Horne says.

Across the country, the Chase branch is an entry point to a full range of services managed by more than 50,000 local bankers, advisors, business relationship managers, branch managers, and community managers. If customers need specialized advice, the team can seamlessly connect them virtually or in person with the right expert.

While J.P. Morgan Financial Centers offer added privacy for complex needs, every branch offers wealth management and specialized support. “Services like home lending, wealth management, and small business banking help us build deeper relationships and deliver stronger returns than basic transactions, supporting the overall profitability of every branch format and ensuring customers receive the guidance they need wherever they bank with us,” he says.

Thoughtfully deploying resources between transactional and high-value services is important for profitability, says E.J. Kritz, chief experience officer at DBSI, a specialist design-and-build firm for financial institutions based in Chandler, Arizona. Freeing staff to focus on high-value services is essential. “The number one way to have a higher-margin experience is by rightsizing the staffing model,” Kritz says. “It really starts with being smart about the balance between banking equipment and the people within the branch.”

Designing For Behavior

At Chase, all branch formats include self-service options like ATMs inside the building for flexibility and convenience. Many locations also offer drive-through banking and outside ATMs. “Clients can handle routine transactions quickly, freeing up our bankers to focus on more complex needs,” Horne says. “Our staff also helps customers use digital tools for every-day banking, making it easy to bank on their own terms.”

As for physical layouts, Chase’s branches are designed for flexibility and privacy, with meeting spaces for confidential conversations and open areas for everyday banking. The financial institution’s 350 “community branches” focus on financial education and local events, while J.P. Morgan Financial Centers feature private meeting rooms and a more personalized environment. “Across all formats, we prioritize accessibility, privacy, and a seamless client experience,” he says.

In many of La Macchia Group’s branch designs, the teller line’s footprint is smaller, making more space for advisory zones and semi-private offices. These advisory zones, La Macchia says, focus on hospitality-driven design with lounge-style seating and soft lighting. Universal banker stations, or flexible, shared desks can handle multiple services and make it easy to transition from a simple request to a deeper advisory discussion.

The reduced teller line is part of a broader industry trend toward smaller, more flexible branch footprints, from roughly 3,000 square feet historically to about 1,000 square feet today, DBSI’s Kritz says. Even so, data from Rivel Research reinforces the importance of branch presence, with 52% of consumers saying they first learned about a financial institution from seeing a physical location in their community.

Rivel also found that 73% of consumers feel confident about an institution when the branch creates a welcoming and comfortable atmosphere. DBSI likes to recommend that branches incorporate a “comfort zone”—a small area to the side of the front entrance with soft lighting where customers can “gain focus.” Such zones should be designed with interactive digital displays, such as tablets, to give customers the opportunity to digest product information before sitting with a staff member.

The focus on high-value relationship-driven services has changed the branch layout to focus on “the facilitation of conversations, not trans-actions. Ultimately, the bank branch should seek to reduce friction in customer experience and support in-person consultative interactions,” La Maccia says. “Having an energetic and knowledgeable staff will encourage the growth of relationships.”

Interactive, dynamic digital signage is embedded in the mural. “That gives the perception that this is an innovative, tech-forward bank,” says Kritz. “Anything a financial institution can do to help drive that perception can help attract younger generations.”

Kritz recommends self-service kiosks to assist with more complex topics and ATMs with live-help buttons. Customers should never be forced to interact with a video teller on an ITM—and especially inside the branch, he says. “The second a consumer gets out of their car and walks into a building they are telling the financial institution that they made a choice to work with a person. So why force them onto a machine? In my mind, it is counterproductive.”

Technology plays an important role in branch design, especially at entry points. ATMs, ITMs and self-service kiosks positioned at entryways can handle quick transactions, freeing up staff to focus on advisory work.

A big bang for a financial institution’s buck is installing digital signage within branches.

“There are few better ways to modernize the branch than through digital signage applications,” Kritz says. “Don’t think of digital signage as a screen on the wall that just shows rates—think of digital signage as both dynamic and interactive.”

DBSI recently installed a “WOW Wall” at a Led-yard Bank branch in Bedford, New Hampshire, which opened in October. The custom mural displays some of the town’s more historic buildings and highlights the bank’s own history.

Encouraging In-Person Conversations

Chase’s Horne says the bank encourages higher-value customer engagement through a combination of personalized service, innovative programs and a seamless omnichannel experience.

In every branch format, customers receive individualized attention, while tiered relationship programs like Chase Private Client offer exclusive benefits and rewards. The financial institution’s One Chase team of experts—including specialists in home lending, wealth management, auto lending, small business banking and consumer banking—work together to deliver tailored advice and solutions for each client’s unique needs.

Additionally, Chase’s mobile banking app provides personalized offers and insights, ensuring clients receive relevant information wherever they are, Horne says. “Our bankers are always available to guide customers through their financial journey, whether in per-son or digitally.”

The best way to encourage people to come to a branch is to make it as easy as possible for them, not just with convenient hours and locations, but by allowing them to make appointments to speak with a staff member. No one enjoys long waits, Kritz says.

“Offering the customer peace of mind that the financial institution is expecting them at a certain time—that is tremendous, and, quite frankly, it is low-hanging fruit,” Kritz says. “It is also table stakes. I think any bank or credit union that is not currently offering appointment-setting capabilities is really missing the boat.”

Instilling an advisory mindset with employees is critical to upselling and deeper customer engagement, Kritz says. That requires hiring and training aligned to this experience. Surveys have shown that the number one reason checking-only customers have no other accounts is that they were never asked about them.

“Customers will only act on behaviors that they were asked to act on,” Kritz says. “That requires that institutions hire the right employees and train them appropriately so they can expertly invite the customer to take advantage of a solution or opportunity for a specific type of conversation.”

A Word on AI

Personalized marketing for higher-value, higher-margin services is evolving rapidly, especially within the financial services industry, La Macchia says. Leveraging a mix of human and AI agents to qualify intent has become critical to ensuring fewer friction points.

Automated AI agents can identify needs based on behavioral data and prequalify customers for services, then hand the engagement to a human agent for upselling and closing, he says. These interactions prompt appointments and in-branch discussion and promote a proactive approach to profitability and growth.

“But a word of caution: make sure that you address any AI ‘doom loops’ where your customer cannot choose to speak to a human,” La Macchia says. “While AI can increase efficiency, it can also create frustration if not implemented properly. Strong relationships and a deep understanding of the customer remain what matter most.”