The results are in— more institutions are remodeling branch locations than in previous years. According to Codigo’s 2015 Branch Transformation Report, 51 percent of banks and credit unions are remodeling a banking center now through 2016. Up from 26 percent in 2014, the data proves that more institutions are rejuvenating old branch locations to serve better the banking needs of today’s consumer, including the influential Millennial segment.

Branch Transformation is way more than an industry trend— it is the beginning of a revolution. The millennial segment is forcing the financial sector to adapt retail banking to fit its needs or else it will just bank elsewhere.  Branch transformation projects are at the core of the revolution.  With 49% of millennials saying they would consider using financial services from companies like Google or Apple, it is clear banks need to make a shift.

Millennials are digital natives— the most tech-savvy consumer segment and fastest adopters of mobile and online banking. However, this segment continues to put value on the branch even if they do not visit one as often as their parents or grandparents. 49% of millennials still see the branch as the number one source for advice on financial products and services and 51% prefer the personal touch of a human when making decisions about their financial future.

The banking center is still alive and well, but for different reasons than in years past. The old branch of transaction and volume is rapidly being replaced by one focused on personal service. Banks and credit unions alike have shifted to create an in-branch experience that assists branch personnel so they can educate and deliver the products that can make a positive impact on their customer’s lives while driving profitability for the institution.

According Codigo’s report shows banks and credit unions with more extensive branch networks leading the charge in regards to the percentage of institutions remodeling while the majority of respondents with less than ten branch locations said they were not.

In 2015, one-in-every-two institutions is remodeling a current location, evolving its branch mentality along with the banking habits of today’s millennial-led market. The institutions with more extensive branch networks are leading the charge in regards to branch remodeling— fitting as they have the most work cut out for them. However big or small remodels are up 26% compared to 2014— a clear indication of a push to modernize the banking center.


According to Codigo’s 2015 Branch Transformation report, institutions with assets greater than $1 billion are almost 20% more likely to remodel a branch than institutions with less than $500 million in assets. There is little variation in the data when comparing both banks and credit unions side-by-side. However, one notable takeaway is that, in the asset range of $500 million to $1 billion, credit unions were remodeling locations 10% more than their banking counterpart.


The revolution has begun. Many institutions will succeed; others will fail. However, there is one clear-cut winner that will arise from this revolution— the consumer. Their needs and desires have caused this industry-wide change, and their banking behaviors will benefit from the ways institutions are transforming the branch.

For more from Codigo’s 2015 Branch Transformation Report, download your copy today!