HOUSTON — Smart Financial Credit Union is living up to its name with its approach to branching out.
Constantly inundated with information about property/site opportunities throughout the area, the over $300 million credit union opted to undergo a thorough facilities study before making a move.
The detailed study provided a demographic analysis based on Smart Financial CU's field of membership and potential growth.
"It was very enlightening," said Smart Financial CU Senior Vice President of Operations Linda Webster. "It gave us a strategic plan for the next 10 years, not just of great future branch sites but it also let us know how much financial growth we'd need to have to accommodate those branches."
Webster adds that the study also helped in determining details ranging from the branch size needed in a particular area and whether it should be a leased or owned space, to the year it should be opened.
"It is worth the money to have a real overall strategic analysis of where our branches need to be," said Webster. "With an area as big as Houston and our field of membership we could be going around in circles without a plan. For example, several financial institutions are going into 290 and initially that's where we thought we should be but we found out that 290 is a mature market–that's time, energy and money we saved. So now others can fight over it–we'll be in an area that is growing."
With a recent approval of FOM expansion into Fort Bend County it was a no-brainer where the first new branch should be located.
Again taking a measured approach, before even breaking ground, the facilities and operations teams began working on selecting Sugar Land branch staffers to help ensure the move to the new facility would be a smooth operation.
"The staff is the first contact with members so we have to decide that before the branch is built," said Webster. "We wanted to give them time to work side by side at another location so they are totally trained and prepared to run a branch by the time the facility is operational."
A mix of traditional and retail, the new 6,200 square-foot facility has an open feel and visually reinforces its community ties with a mural that captures the best of Sugar Land. Another unique branch feature is the cash bar. Eliminating cash drawers on the teller line, the "bar" consists of kiosk-like cash dispensers so tellers enter the information and simply count out the cash and coin to members. All transactional account paperwork is stored in a safe deposit box and at the end of the day it is sorted out resulting in only a 10-15 minute balancing process.
With so many shared branch transactions, Webster says the "bar" strikes the perfect security and service balance incorporating the best elements of dialogue pods and remote teller systems.
"It has only been six weeks but so far members are responding well to the cash bar and they can't believe how fast it all is," said Webster.
The facility also includes six drive-thru lanes with interactive video monitors where members see tellers working on their transactions, a digital rate board, plasma screens delivering marketing messages, ATMs, safe deposit boxes, a children's play area, free coin sorting machines and a greeter station.
With an eye on drawing area families, the Sugar Land grand opening featured caricature artists, balloon-twisting clowns, face painters, an obstacle course, funnel cakes and a live Radio Disney broadcast.
The event was a hit with some 300 locals participating in the family friendly festivities. While kids enjoyed the hula-hoop contest, adults opened new accounts and signed up for additional CU services to increase their chance to win a 2006 Toyota 4Runner and took advantage of a special 10% 12-month CD promotion.
"We're still analyzing the results but the promotions have been an overwhelming success and a great jumpstart to get members into the new branch," said Webster. "It's a different move for us building this full service facility in a new area–typically we lease a smaller site until we have a foothold in the area but the Fort Bend penetration is so high we knew the branch would do well."
As proof that planning pays, the Smart Financial CU branch has set a company record for deposits at a new location. As of September 25, the branch has a total of some $6 million in assets and $300,000 in loans.
The new facility design will be a prototype for other Smart Financial CU branches. Webster says over the next few years the credit union has plans to open three branches in other areas identified by the facility survey. Also slated is a major renovation and expansion of existing branches.
"I can't stress how important it is to have a clear direction when it comes to branching," said Webster. "This is the second facility survey we've done and the last one about 10 years ago was absolutely on target so we'll probably do another updated survey in about five or seven years." –mdigiovanni@cutimes.com
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