00:00:00 Juliet. Thanks, Randy, and thanks everyone for joining today. We are thrilled to get into a conversation around one of the least understood generations, but the most critical generations to unlock what is at their hearts and minds when it comes to the future of finance and how branches
00:00:25 can be designed to not just accommodate this generation, but really help them to reach their fullest potential and the potential for financial institutions. So I'm going to go through this, and I would like, before we start talking about branch design or investment or tiers of opportunity,
00:00:49 I want you to meet someone. And so this is Emily. Something that you might imagine about Emily is that she's highly connected. She spends over seven hours a day on her phone, just like the rest of her generational cohort, but she's also lonely. And that sense of feeling, no matter how connected
00:01:12 she is to others through social media, she feels disconnected. So the sense of disconnection and longing for connection is pervasive. No secret at all that she's digital first. She has 10, an average of 10 core platforms that she uses every day, just as a matter of fact, how she runs her life.
00:01:36 But she's seeking real relationships, those relationships that matter with other human beings. And this statistic, when I learned it, blew my mind that 50% of Gen Z just wishes social media didn't exist at all, even though it is the currency and the platform of how they connect
00:01:55 wish it didn't exist. And finally, what's really interesting is that Gen Z is making good money. This is not a generation that's living in their parents' basements. 70% of them are financially independent. A huge percentage will make up the US workforce by 2030. What might be surprising to you is that with
00:02:22 all the apps and chimes and sofas in the world, Emily, just like the rest of her cohort, wants to bank with you. And 80% of Generation Z holds their primary account at either a bank or a credit union. And that is not going to change anytime soon. And the way that we know that is because we asked. So let's take a
00:02:51 really big step back and ask, why are we even having a conversation about Gen Z? I've been at Adrenaline for seven years now, really looking at how financial services can best shape a customer experience to meet the needs of any generation that's coming to them. And so in seven years, the conversation has
00:03:13 shifted from millennial to Gen Z. So why is this generation important? And in the next seven years, this is not a generation that is living off their parents' allowances. There is the biggest wealth transfer in human history that will be happening from boomers and from older Gen X as they retire and move
00:03:41 into next chapters to their Gen Z kids. And over the next seven years, the generation will have $12 trillion in spending power. So this is a highly critical audience to know what they think, who they are, and especially how they bank and how we can design for it. We also know that there's a lot of movement
00:04:07 that's happening. Gen Z is the least brand loyal generation, full stop, period. They will look around and they are searching for brand relationships that matter to them within financial services and outside it as well. But we know that they are going to be opening 4 million new accounts just this year,
00:04:33 4 million new accounts. And 20% of Gen Z are planning to switch their PFI. They're dissatisfied with the experience and they are looking for another primary financial relationship. And so this is, if we play our cards right, this generation, it's yours for the taking. They're looking, they have money, they want to
00:04:59 open accounts. So how do we get in front of them, especially knowing how crowded the landscape is, the competitive landscape. And so even though any one Gen Z person, Emily, say she lives in Illinois or Chicago, even to get it more neighborhood focused, even if only a fraction of the 9,200 financial
00:05:29 institutions, and that's not counting neobanks, are something that Emily could choose from. They're within in her markets. That is still a dizzying amount of choice that any person has to choose between banks and credit unions. The landscape has never, even with all the industry consolidation, it's never
00:05:53 been more competitive. So let's come back to Emily and think about the idea that Emily and the 71 million other people who are just like Emily, who are within her same age range, who are Gen Z consumers in the U.S. can be your bank or your credit union's biggest risk by losing them, by not attracting
00:06:22 them to begin with, or your biggest opportunity to grow relationships with them today and to use the branch. And yes, you heard me. I said the branch. It's not even the most digitally focused generation is seeking a real place to go. So this could be your biggest opportunity. Big caveat, not if your branch
00:06:53 looks like this, or your branches look like this. And definitely not if they are merchandised like this. And I share these images with love, not to say that there is not dissing any particular bank or credit union. This is the reality of many of Adrenaline's clients when we walk in, the idea that our branches
00:07:18 exist as transactional places, exist as transactional places. And we know that there is a sea change that's happening. And we're really excited to talk about how to choreograph the branch experience for Gen Z while being inclusive of all the other generations. So taking a step back again, how do we know
00:07:41 everything we know about Gen Z? How did all those big data points get to you that I shared on the earlier slides? And that's because we asked. In partnership with our client, Empower Federal Credit Union, we did a national study of Gen Z banking preferences. And so we looked at
00:08:07 associations, competitive preference. We looked at experienced drivers for Gen Z. And what we learned blew our minds, quite frankly, at Adrenaline and busted almost every myth that we had about Gen Z. There's a QR code on the left there that please download the report. All the data that I'm sharing
00:08:31 today, unless otherwise noted, comes from this report. Okay. So that's Gen Z. That's the big opportunity, the 30,000-foot view. So why branches? Again, if I go back seven years when I started at Adrenaline, there was, even at that time, the death knell of branches. Branches are going to be dead in the
00:08:57 next five years. And then COVID happened. And then branches were really going to be dead, just like the rest of retail. But there has been not only an enduring role for the branch, but a growing role for the branch. And we see that for lots of reasons. So let's just ground us in those reasons why.
00:09:18 Jamie Dimon, your friend and mine, puts it in such a beautiful way that people like to visit their money. So the nature of branches are changing. We just mentioned it goes from transactional hub to advice hub. But people still go there. They want to visit their money. So there is a
00:09:38 psychological need that drives branch banking. And that's not changing anytime soon. We also know, not even with Gen Z specifically, but branches are essential for every generation. So when we're looking at either customer or member acquisition, so with seven of 10 people wanting
00:10:01 a branch nearby in order to consider switching, almost 90% of people have used a branch in the last year. We also see that it drives retention. And so if you open an account digitally, you simply are less connected and less likely to stay loyal. And if you're less likely to stay loyal, that's less
00:10:23 opportunity, to put it frankly, for cross-sell and for deepening those relationships. So the branches continue to be important. When we come back and look at Gen Z very specifically, and the reason why branch banking is so important, what we see is a difference between their financial ambition,
00:10:49 which is high. 50% of all Gen Z says, yep, next year, I'm going to be doing better than I'm doing this year. 10 years from now, I might even be rich. So lots of optimism, but also a lot of anxiety. 70% report, not just like a little uncertainty, but high anxiety when it comes to money. And 40% of them,
00:11:13 and this number doesn't change much when you look at generationally, they're confused by financial matters. So they want to achieve a lot, they feel driven to do so, but they don't quite know how. So we see that's driving this generation. We also see, as we sort of look up more specifically into
00:11:38 the branch, that there is a delivery. Yeah. So the way that financial institutions are delivering now is that, and we know that people want to go to the branch full stop. Gen Z, 65% of them say, hey, if I'm going to open an account, it's yeah, cool. I could do it online, but I'd prefer to do
00:12:01 that in a branch. However, 66% of branch interactions, Gen Z reports that they feel like a sales pitch to them. When the dynamic changes from a sales pitch feeling conversation to a conversation, an advice driven conversation, 76% of Gen Z will actually act on the advice that's given at the
00:12:31 branch. So when it turns into advice that is personalized to Gen Z, their propensity to buy, their propensity to transact skyrockets, that is a 76% gap that is there for the taking and for financial institutions to fill when you deliver on what they're looking for. So let's talk about how
00:12:58 to close that gap through branch design. And Amanda and I are going to talk through three big ways that we see that that is possible. And examples for financial institutions around the country, different sizes, different levels of budget, different delivery models are doing just that.
00:13:23 And the first one is designing around human beings and designing around Gen Z human beings specifically, of course, keeping in mind all other generational cohorts. The second is putting purpose at the front, center, center, and back of all of branch design, really leading with the idea of the purpose that
00:13:49 you fulfill in a customer or a member's life. And finally, by building belonging. Think back to that initial statistic around Emily and how she feels lonely and how she wants to connect. That search for belonging and for community is something that branches and branch design can help fulfill.
00:14:17 Okay. So in thinking about design for people first, I would love for Amanda Puglio, who is Adrenaline's design director, working with clients across the country to help design, imagine their branch design, re-imagine the experience and the strategy of how they are going to reach Gen Z and ultimately
00:14:44 to design it. So Amanda, let's hear from you and about people first design and what that looks like. Yeah, absolutely. Thanks, Juliette. So I think to answer that question, we first could quickly just kind look outside the world of financial services. And really starting with the acknowledgement that this
00:15:04 next generation of consumers, their expectations are, of course, shaped digitally. They're such digital firsts, but they're not only shaped digitally. They have really strong real world experiences that are all built around centering human beings. And so when we look at CX leaders like Trader Joe's, Starbucks,
00:15:28 Apple, Chick-fil-A, you could go on and on. But what I think the key theme here is that their stores are designed around something you can't get in their app. And that is people, support, connection, expertise, expertise, just, you know, things that really can only happen when you're face-to-face
00:15:49 personalization. That's really what the generation is craving when they choose to step into a store versus just log into the app. And so that thinking, we are seeing a similar shift, Julia. I know you noted this earlier about the branch kind of shifting from a transaction hub to an advice hub.
00:16:10 And so that really is shaping kind of a new purpose of branches for all consumers, but especially relevant for Gen Z. And it's really talking about this as such a powerful community connection and brand beacon, like relaying that notion of your brand being accessible, always available, but also
00:16:36 deeply purpose-driven. You know, the exterior, the front door of your branch can send super powerful signals that help Gen Z navigate that dizzying array of choices. But then how does the interior experience unfold, not just in how it looks, but genuinely what it is they're achieving in there?
00:16:57 And it's really gearing towards advice, helping to navigate life's tricky moments, which we know Gen Z is facing a lot of them right now. Like they're getting their first jobs or making their first investments. For some of them, buying their first home is right around the corner. There's a lot of nuance to
00:17:17 their financial situation currently, that the branches are really well positioned to be staffed in an advisory way that breaks down some of the confusion or anxiety that this generation is feeling around how to make those first big, important financial steps. And then of course, transactions. We know that is a function of
00:17:37 the branch, but it's more so when the virtual app just doesn't cut it for one reason or another, or just basic cash services. And so when we start to apply that into like a design methodology, we really start to look at what we call sort of zones of experience. And this is not net new thinking,
00:17:59 but it's a trusted methodology and a powerful one for really putting yourself in the place of the end user and making sure that the design that you're curating and the ultimate journey through your ecosystem is really resonant with that particular end user. And so when we look at things like the attract zone,
00:18:26 the engage, transact, and consult, there's really great ways that you can dial up the experience or the look and feel in any of those particular zones when we look at it through the lens of what Gen Z is looking for, again, that advice hub. So yeah, with that, we'd love to take us through some examples.
00:18:47 Juliet, you're going to start us off looking at the attract zone. Sure. Well, it's, I will say that this is a little bit of a piecemeal way that we're going to share some of the examples, but I think it helps to see that how that zonal approach and how the strategy really works. So Valley Bank,
00:19:10 they are about a $63 billion institution. They're headquartered in New Jersey. They have a branch network, I think a little under 240, 230. Their new flagship right at Fifth Avenue in Manhattan and 30th Street became a beacon of attraction for Gen Z through this large scale curvature of digital signage
00:19:43 that is programmed with content that is called the eyes of New York. What you see here, it's not just Gen Z looking eyes, but it's eyes of real people. And it's telling a powerful story about Valley Bank of who they are, who they serve, and really how authentic they are, that they are a reflection
00:20:08 of their customers. And so when we think about what it means to get yourself on the map of a Gen Z consumer walking by across the street, the visibility and power, especially in Fifth Avenue, there's a lot of visual noise happening, that idea that the branch and the attract zone is used as a
00:20:36 beacon that becomes a magnet that pulls in consumers just to learn more and gets them on the map. Similarly, Charles Schwab, and I think that this example is interesting for a couple of different reasons. The way they use the way they use the attract zone, and this is in Cherry Creek in Denver that
00:21:04 happens to have a high propensity of Gen Z and younger millennials living there, lots of them. And so this idea that the windows are turned into a living, breathing manifestation of the brand that reflects the interests of people, of Gen Z people. And so the idea of the Schwab investing theme that allows
00:21:31 anyone, you don't need to be a high net worth person to walk into this branch and begin an investment journey with them. It allows you to choose what's interesting to you in your life. I'm interested in pets. I could do pet-based investments. I'm interested in coffee culture. I could do coffee-based
00:21:52 investments. So this idea that they're saying, we're not just for your grandpa or your grandma. We're not just even for your parents, Gen Z. We're for you. And any place that you walk by this branch, when you come up close, when you go across the street, this idea, it's colorful, it's bright, and it's unexpected,
00:22:15 and it's 3D. So these large-scale displays that are showing this idea of put your money where your blank is. If you're a foodie, for example, that is really turning all the dials for the attract zone to work exactly as a beacon for Gen Z. So we just looked at two examples where big institutions,
00:22:45 budgets were on the higher side, but this isn't limited only to big budget institutions. And so Amanda, talk to us a little bit about how even more analog approaches can work at the attract zone. Yeah, absolutely. I think it's really about, again, just relaying that notion that this is not an
00:23:11 intimidating space. It's welcoming. Like, step inside. We can help you. And so in this example with Virginia Credit Union, they're about a 40-branch network. They serve multiple regions across Virginia, and they're super focused on engaging people early in their life to build that lifelong
00:23:31 partnership. And they particularly have a lot of university partnerships, things that really sort of resonate with this generation. But when we look at their branch location that was executed in downtown Richmond, you know, this was a former restaurant that was converted into a branch and
00:23:50 had a great window front already on pedestrian-facing streets. And so the team really took the thinking of what do you see when you look inside a restaurant? You see table seating, you see comfortable conversation spaces, a variety of spaces to meet and gather. And so that same concept was brought
00:24:09 through just for a branch. So when you're looking through the windows, you see that there's different nooks and conversation spaces. There is access to technology, of course. It is a convenient space, but that's not the only thing driving what makes this unique and appealing. And then as you step inside,
00:24:29 and now we're kind of crossing into the engage or the welcome zone, which is such a critical zone in the branch experience because it's where you've set that stage on the attract side, and now delivering and fulfilling on that promise or that intrigue that kind of brought people in your door becomes so
00:24:52 critical. And so for this location for Virginia Credit Union, stepping inside, we do have access to, transactional touch points if that's what you're there for. Maybe it's a quick assist at various ITM locations, or there's a small teller pod. But the key takeaway is that none of this feels like a barrier
00:25:13 to human connection. And overall, this just feels like an open sort of flowing space that's inviting you to step inside, explore more, let's have a conversation. We can go sit over there in the lounge or any variety of meeting spaces, and we don't need to necessarily stop this engagement here at the
00:25:34 door at the transaction. And so really kind of similar thinking plays out in this example here with M People. So they're about an 80,000 member network from the Midwest to Maine. They're currently growing that multi-state footprint, but really focusing on relationship-driven banking.
00:25:54 And so when we started to design their main locations, that focus started to come through in some really intentional design decisions. So you notice that this feels very warm, use of a lot of natural materials, kind of just like a calming, chill color palette. Again, we were really trying to think
00:26:16 about how do we make a space feel not intimidating, easy to navigate, and just lower that anxiety level a little bit. And so that was just kind of one great example there with M People. But moving beyond just credit unions, bank customers are doing a lot of good work here too, as well. So just to hit on the
00:26:38 welcome zone that we see here for Wachula Bank out of Florida, wanted to highlight a couple of things here. One just around how they're handling that first initial interaction. And it's at the notion of more of a concierge station. So this is multi-purpose. It is embedded with technology to
00:26:55 support transactions or like checking you in if you've arrived for an appointment. And it's a staffed location. But quickly beyond that, you move into a consultation, casual space. It's high tech, high touch, I would say, in the sense that those tablets can easily be grabbed. That's where you
00:27:14 could grab a cup of coffee and sit down with your banker and maybe help fill out that account opening application that you started online and then realized wasn't really for you. And I think Gen Z is definitely showing us in the data that things such as account opening would prefer to be done in person.
00:27:32 And a setting like this just takes that from feeling like something that, oh, I have to go do to like, oh, this actually could be enjoyable and drives value and a memorable, positive experience. And so the same thinking around personalized connection, human, let's talk about how that
00:27:54 might start to play out in Transact, which is historically a zone in the branch which has the most equipment associated with it. And so with that comes a lot of natural barriers, whether it's through millwork or through equipment. What we love about this example with Civic Federal Credit Union
00:28:12 is, you know, they were a digital only credit union that then faced sort of a separation from their partner of branches that really required them to open a physical location, but they wanted to remain true to that digital DNA. And so all of their technology infrastructure is very light, very mobile. They
00:28:35 have a core system that supports, you know, laptops throughout the space. And that is useful when we think about the Transact Zone because we were able to really partner with them to minimize the equipment in the zone. Tuck a lot of it underneath the teller pod. And then the essential equipment that's up on top,
00:28:56 like a signature pad or a laptop, is minimal. We knew it was going to be black. So we also then made the surface, the counter itself black so that that would all kind of blend in and become just part of the background, allowing the human being, like if you're there to process a transaction, we can help
00:29:14 you. But it's the human that's front and center of that experience. And then just looking at Synovus, you know, understanding that not every institution has that type of roadmap in place to have such a light technology touch, we can still address how technology is embedded, but make it feel like visually quiet.
00:29:37 And so here there's a lot of, again, just concealing of equipment. But what I think is most, what I'd love for the key takeaway to be here is drive up servicing. And when we think about the zones stepping into the branch and that first signal that you want to send to your consumers,
00:29:56 especially Gen Z, is that this is a space for conversation, not only transactions. And so when you have your focal point being the drive up window and the VAT tubes, it sends that signal. But here in this example, there is actually drive up servicing happening, but it's in a concealed way. So in the
00:30:17 column next to the teller pod, there's video VATs that are dropping down. And so the staff is able to still manage drive up transactions, but they're always remaining facing forward in the lobby, they're not bouncing back and forth, turning their back to customers that may be entering and just
00:30:35 making that feel like kind of an awkward experience for folks in the lobby. And then at the drive up, especially important in terms of the video interaction for folks. So moving into our consult zone, when we look at Harvard Federal Credit Union, really great credit credit union out of the Cambridge
00:30:55 area recently rebranded to specifically target Gen Z students. And then also some of the employee kind of legacy members, but the consult zone. So this was a complete modernization of their branch, not a full renovation. So a lot of graphics and I would say a very focused effort within their
00:31:17 consultation spaces to position those more as an idea hub, not a banker's office. You can pull up a stool, here, have a quick conversation. There's a screen to help you visualize what it is you might need to discuss. And so it just balances this idea of openness and approachability and breaking down some
00:31:38 of those barriers. Civic again, just looking at this as a case study for a variety of consultation spaces. You know, the Harvard example, we just saw a much smaller space. This is a larger area where the consult zone was able to take up just more square footage. But the common theme throughout was this
00:32:00 notion of a working lounge. So there's a variety of different touch points, all with like more casual seating that just, again, send the signal. I'm not here to lecture you. Don't feel like worried or anxious that you don't know all the answers. I will help you get to the answers and sit side by
00:32:20 side with you while we do that. One last thing I just want to point out on this example is the use of wall space. So you will see a difference between this and the earlier example that was shared about using wall space for more than just promoting products and services. So Civic really leaned into kind
00:32:40 of displaying their connection to local communities and sustainability. And when you use your wall space to relay things like that, it starts to drive real loyalty with the younger generation that just, they want to bank, they need to bank, but they really want to do it with a brand that they believe
00:32:56 in and they believe in the purpose behind your business and that you're doing good for the world. And then our just kind of rounding out this section, stepping outside once more to talk about the drive up. This is just such a huge opportunity. It's not just legacy infrastructure that's coming
00:33:19 off of like the back of the branch. When we consider that a quarter of Gen Z prefers using the drive up, like we should celebrate it. And all of the examples that are shown on this page, you know, ranging from larger institutions to smaller, what they're all doing successfully is using their brand
00:33:38 colors, their brand service style or messaging to relay and connect people and purpose. And you can get that outside without even necessarily needing to take the time out of your day to come inside. And what, you know, how do we start to solve that for a generation that really thinks that every interaction
00:34:01 they have with a brand and they're not wrong should be completely branded and telling your story. The good news is that at the drive up, there's a ton of easy wins and low hanging fruit, you know, equipment, bollards, just the structure itself can all be canvases for your brand to come through.
00:34:23 And that same thinking applies when we look at freestanding ITMs. What we love about this, you know, it's a lighter scale approach, you can spread these out across your market to give you that perceived presence that again signals to Gen Z, we're always available, we're easy
00:34:43 to access. But also these act as little micro brand beacons that just are powerful signals to a generation that's looking for human connection, personalization, as well as convenience. Thanks, Amanda. I loved the examples, all the examples that you shared, but really the
00:35:07 the number one sort of bell that we continue to ring is this idea of purpose. And brands that lead with purpose, financials especially, and that bring that purpose into the branch experience by design are the ones that will eventually win. And we all know what this chart is going to tell us.
00:35:29 It is that there is not a gap, but an opportunity. So when we look across Gen Z, we know that, and this isn't new news to you, I am sure, but almost 80 percent say that if you have, as a brand, a strong purpose, I will support you. There is deeper, stronger loyalty to what we can just, with a broad brush
00:35:53 called give back brands, brands that exist to do good for the world, for other people, for others generally. And that is a powerful message for Gen Z. And 42 percent of them don't just sort of think about if you are going to be truthful, honest, transparent, authentic, but that is a strong
00:36:17 driver of consideration. So this isn't a gap. This is an opportunity to live values. And I love this quote from a real live Gen Z-er, Anna, not Emily, but it's important to have a relationship with your bank. It's a traditional concept. But when someone stole my account information, I was glad I could go into
00:36:39 a branch to resolve the issue with someone I trust. It's there for a reason. And that purpose, and that trust, and the relationship, all of these, Gen Z gets it. It's not lost on them that this is the kind of relationship they're looking for. And another real live Gen Z consumer that we spoke to
00:37:04 underlines the fact that there's a lot of things that are fake that Gen Z has been exposed to, which makes them hyper aware of what's real and what's not real. So that idea of authenticity and purpose becomes incredibly powerful as a lever. And I want to talk about, we just looked at the
00:37:25 drive up for Eastrise. I will take us quickly through a purpose-driven brand and branch experience that is poised for the next generation. So Eastrise Credit Union, lots of consolidation that I mentioned earlier that are driving the industry, these were two of, these were the two biggest credit unions in
00:37:51 Vermont. VSECU, Vermont State Employees Credit Union, and New England Federal Credit Union, they merged, they came together with a new brand and a new promise, Eastrise Credit Union. We have our beautiful Hermit Thrush logo and a new color palette. But the beauty and authenticity of the brand really began to
00:38:16 come to life as it was implemented and envisioned across the branch experience. I think Eastrise does the best, or not the best, but does one of the best examples of being able to turn a dial. So taking the brand guidelines and being able to dial up the bold elements, the playful elements, those vibrant colors,
00:38:43 the travel-driven icons that is all about the Gen Z aesthetic, but also the dial can move into more sophisticated, quieter textures and patterns. They all live within one purpose-driven brand. And so if you imagine that you're Emily and you've only ever banked on an app before, you walk into this lobby
00:39:11 of Eastrise Credit Union and you see authentic textures and colors that are from the landscape around you. You feel that sense of locality there. And you're faced with a bold statement, all the difference, that this is a promise that the credit union is making to you that if you bank with us, we will make
00:39:37 all the difference in your life. And there are so many ways that we can look. You're looking at befores and then after on the bottom signage, all the branded elements, the paint colors, some of the furniture, and importantly, the in-branch marketing, the playlisting, and the content itself took this
00:40:02 idea of authenticity. Everything that's featured there are real members in the real environments of Vermont. And so remember what we said about Gen Z, being able to tell fake from real, they'd know if that was a stock image. That sense of authenticity comes all the way through. And that's true even in
00:40:23 the not the most glamorous of spaces, but different, smaller, quieter spaces. You'll see at one of these offices, that's their brand purpose that is on the wall. We empower our members to create a positive impact on communities and the world. You see that constant repetition of the all the difference.
00:40:45 And then there is a beautifully designed space that is designed for community learning. We'll talk a little bit about that sense of building belonging with brands and how powerful that can be when we invite people in. And finally, I think this is a great example of putting purpose in the,
00:41:03 not only the branch environment, but in headquarters environment, where brand and culture and purpose become reinforced everywhere. And this is true in admin buildings, in the call center, in all of their operation centers, you see brand values, you see the brand tone of voice reiterated that same kind of
00:41:25 photography that becomes a cohesive thread that immerses whoever you are in the brand and helps to engage the staff to deliver on that branded experience. Another great example here, CFCU, Community Credit Union. They were Cornell Financial Credit Union or Cornell Federal Credit Union. They became many iterations,
00:41:52 ultimately landing on the acronym CFCU, rebranded. They're about $4 billion. They are in upstate New York, rebranded to Beginnings Credit Union. I don't have to say a lot to say that you can see how the idea of purpose is captured not only in the logo, but the name itself. And so this became a
00:42:19 celebration brand that is, that will honor legacy relationships and focused on attracting younger generations. It's bold, it's bright. It's about the idea of possibility. It's exuberant. This is, this is one of the, they're real staff members. And this celebratory brand is told in multiple ways,
00:42:43 um, outside in the community, um, uh, a way that the audience of younger people and older people is embraced in the brand itself. And that is true at the branch as well. And so as you even enter the branch, their brand story is on the wall, there is, um, the, these were more branch refreshes. This is
00:43:18 not a, um, this is not a renovation as much as it is a conversion of one brand to the other and just the power of paint and how that purple and those vibrant oranges begin to transform the space. So the logo becomes the hero, the idea of possibilities are unlocked the, uh, the branded artwork, um,
00:43:44 on the exterior sort of interior vestibules. As you enter for ITM, even more transactional and functional spaces become a canvas to tell the story of the purpose of this brand, which is all about empowering possibilities for everyone, whether you're Gen Z or you're entering retirement or anywhere in
00:44:08 between that. So, um, this is a, this is a recent rebrand. We're keeping our eye on them to see how this idea of a purpose can help to reignite growth for them. And then finally, we, we coming back to civic FCU, these are smaller touches. So this is not about, uh, big branch transformation, but small ways that
00:44:30 purpose can begin to have a role in the branch for civic. They have a, uh, a big, uh, partnership with a bee and, uh, honey company that is local to where they are located in North Carolina. And so this display in their branches is a way to signal that idea of purpose. Again, if you're Emily and you
00:44:54 walk into this branch and you see that, you know, that civic isn't just about, um, isn't just about banking. You know, that it's about the community and about the environment and it stands for something, um, on the other end of the spectrum, Comerica, a big regional, super regional bank that has a place
00:45:14 designed to highlight local entrepreneurs and business authors. So it becomes a library where you can go hang out, read, and also, uh, see how they are supporting the local business communities. So finally, let's talk about that idea of community building and that sense of belonging that we know
00:45:37 Gen Z, uh, is, is seeking out of all relationships and especially their financial relationships. And I love this quote, um, from Jeff Martinez. He is the EBP and head of branch banking at PNC, which of course has a, um, a big commitment to the branch as they are investing, uh, throughout, throughout the U S
00:46:01 the branch that feels like a community hub will always outperform the branch that feels like a service counter. So the idea that we have a place that something other than just quote unquote, just banking is happening. It is a place by, for, and about the community. And we are welcoming them
00:46:24 through that in highly, um, both explicit ways, but also in the way that we serve. And of course, this is a great snapshot. Um, none of this is new. Of course, Capital One Cafe, uh, came out many years ago, but when we think about how digitally disconnected the Gen Z is, and has become, and how we see that
00:46:50 in the data. And we see that in the behaviors of them seeking these branch based relationships, we begin to see that this idea, um, is even more relevant today. So this idea of designing spaces for communities, we'll talk about some of the work cafe at Santander, uh, Comerica's community activated
00:47:11 spaces and CUTX really fulfills that need and have to include this just because it's so cool. Um, this is, uh, Kasha Bank. It's in Barcelona. And, um, it, I think does such a beautiful job of being an exemplar of this idea of serving the needs of the community. This is, um, a big space that, uh,
00:47:38 that is there to, with stadium seating, it's there to hosts, to host lectures. They can teach about financial wellness. They can host artistic performances. You see, they have a workshop on creativity. They have lounge spaces that are opening up the branch for broad purpose. And
00:47:57 the purpose is connecting people through the power of community, which I think is such a, uh, such a beautiful story that is represented here with Credit Union of Texas and their guild, Gilmer Branch Transformation. Amanda, talk us about this. Sure. Yeah. I think one institution that just
00:48:18 always, um, really kind of lives that promise of community hub, um, through all of their locations, but especially in Gilmer, Texas is the Credit Union of Texas, also known as CUTX. Um, so they're Dallas based about 150,000 members, but have recently focused on expansion in East Texas and targeting
00:48:41 generally underbanked or communities where beyond just being underbanked, there's service gaps within the broader community. Um, and Gilmer was a location where they were able to acquire this vast piece of land that really had more space than was needed for just a branch. And that aligns
00:48:59 just, um, really well with their mission as well as what everything we've been talking about today around purpose-driven banking and branding, um, but allowed us to take a campus approach. So we have a combined cafe and, uh, branch, you know, there was not a cafe in town until CUTX opened one as a part of
00:49:21 their branch. Um, but a really special feature of this project was also a standalone community center building. Again, another gap in the community, um, no rentable space. And so today the Gilmer Gathers venue, as you see on screen here, you know, that's right up front on the street front, um, acts as a billboard
00:49:42 to the community. Um, you know, it is constantly booked months in advance, uh, bridal showers, education events, summer camps, all of that's happening here. And what I really love about this example is how, um, CUTX invested in a local artist in the community to paint a mural again, tying into that
00:50:05 notion of like, make it real. We're going to know if it's fake, this is real local art coming to life. And they successfully tell that story on big display, but then through smaller touch points throughout, um, the branch. So just looking inside now at the cozy coffee, uh, cafe, which is a local vendor,
00:50:25 um, that operates out of their branch. Um, you know, we have space for, uh, conversation and coffee games, um, could totally see Emily in here with her friends, maybe coworking while also taking care of some banking needs. Um, on the next slide, you'll see how that branch, uh, space is immediately sort
00:50:48 of positioned to easily flow into the cafe. Um, you can just as easily grab a cup of coffee with a banker, um, or move throughout the casual seating space here. So just really a powerful, um, concept of going beyond just a branch and having it really act as a community hub and how
00:51:09 resonant that would be with this generation. Um, and then I think the last example we were hoping to share is just, you know, taking that concept of bringing banking to Gen Z. So when we take it mobile, uh, looking at Comerica again, um, with their go America van, this has all the zones and still
00:51:30 the well curated, curated experience that we've been talking about, um, just in a compact footprint. And what that allows for is things such as education, financial outreach for that to literally penetrate into the communities where, um, Gen Z is living and not necessarily
00:51:49 meaning that they need to find their way to a branch. The branches is quite literally coming to them. And I think that again, just relates to the desire and expectation for convenience partnered with personal service. Yeah. And before we wrap up, I do want to give just a little shout to our very own
00:52:09 Amanda and the Gilmer branch that we just, um, featured, which is, um, hot off the press. We just published a piece. If you're interested in learning more about it, it's called the billboard effect and the power of the branch. And you can find that on adrenaline insights. So I, if, if we haven't made it
00:52:30 clear before, let us make it clear that Emily doesn't want another app based relationship, Emily wants to bank with you. She is looking for a reason to bank with you. 65% of Gen Z wants, wants a banking relationship and wants to know that you're nearby and that there is a branch that she
00:52:56 or they can walk into and have, whether it's when they, when something's happening, like their account information was stolen, or they need a place to hang out, or they're looking for some advice about what to do with their money and how to achieve their goals. She wants to bank
00:53:14 with you. And so understanding that really becomes, um, the confidence and the wind in your sales. It's all about, are you going to be ready for Emily and the 71 million, uh, of her cohort that are seeking the banking relationship? And you will be ready by designing people first purpose led and
00:53:38 ultimately building belonging and making places for your community. So thank you for, um, for letting us share. It's really been an honor to think about everything we're interested in and learning about this generation and how we are, um, actively designing for them each, each day. So, um, I will
00:54:00 pause here and, uh, Randy, I believe is going to, um, serve up some of your questions and our remaining time together. All right. Thank you so much, Julia and Amanda. Big, big round of applause for that amazing presentation. Um, you'll also find their articles and their reports in the chat section. I
00:54:23 see that Sarah has posted the link to a few of them. So there are more resources and guidelines for you to take a look at. So the first question I noticed is, um, someone posted, are Gen Zers really walking into branches? What does the data say and what are they looking for? Yeah, I'll, I'll take, um, I will take
00:54:45 that. So here is the biggest, um, data point that feels about as unintuitive, um, as possible. I have two Gen Z kids and they, they certainly spend a lot of time on their phones. What is interesting when we look about Gen, at Gen Z branch usage? Gen Z uses the branch, um, up to three times more than boomers
00:55:14 do. And so that is the, the data is telling us a strong story that they are coming into the branch and whether, and that's inclusive by the way of drive up, um, visit. So we know that they are coming into the branch and what they're looking for. If there is one big takeaway from this is, um, a
00:55:36 personalized relationship led experience. That doesn't mean that they're not going to be interested in having an easy app or, um, a seamless ATM or ITM experience. What it does mean is that, um, um, the relationships that do happen and can only happen at the branch are key to driving loyalty.
00:56:00 So yes, they are using the branch. We know 80% of them again, um, have a, uh, their PFI is with a bank or credit union. We know they are going into the branch, um, more than their older, uh, their older counterparts, um, even at the drive up. So yes, they're coming in and they're looking for relationships.
00:56:26 Great. Thank you. Um, the next question we have, and I think we've been hearing this a lot, um, from our future branches audience is how are banks and credit unions using AI in the branch setting? Yeah. Um, I'm happy to take a pass at that first and then Juliet, feel free to chime in, but
00:56:46 I think, um, especially when we relate that question to Gen Z and needing to thread that careful needle of having it feel very authentic because they're going to pick up on it right away if it's fake. I think what we're seeing AI help become a powerful tool is just enabling the staff
00:57:07 with like real-time data, real-time information at a really quick pace, which is also an expectation of this generation. But then that allows them the human being staff member to focus on delivering that quickly attained information in a really authentic and approachable and conversational
00:57:27 way. Um, I think we're also seeing it helping to fuel and streamline the notion of like appointment driven banking and personalization. We know that, that, uh, appointments do allow for staff to be like well prepared for the person walking through the door and, um, have seen some examples of AI
00:57:49 helping out there. Julia, I'm not sure if there's anything else you would like to add. Yeah. The only thing I would add is that the biggest investment we have seen, um, in how the branches are in investing in AI is really through tools for staff. And so it underlining what Amanda
00:58:11 said, um, the tools become that, you know, Bank of America has, uh, Erica, Wells Fargo has Fargo. All the, all the big banks have great AI driven sort of personalized concierge for their customers. Um, for banks that are getting it right with AI, that becomes a tool for their staff to give better advice
00:58:39 at speed and still be able to personalize it. So the, um, so the investments that we're seeing are really in building those staff facing, um, chat models that are equipping the staff to deliver on Gen Z needs. All right. Thank you so much. Um, so thank you so much to Amanda and Juliette for today's session.
00:59:05 And of course, a big thank you, um, to the entire adrenaline team for sponsoring today's session. To all of our branch executives in the audience, if you're looking for in-person networking and face-to-face sessions with your peers, our next future branches event is going to be in the summer
00:59:21 on June 15th, 16th, and 17th in Boston. So if you have any more questions on that, feel free to connect with us offline. But with that, I'll bring this program to an end on behalf of adrenaline and the future branches insights team. We thank you for your time and we hope you enjoy the rest of your day. Thanks everyone. Thank you. Thank you.