How One Texas Credit Union Mastered Branch Optimization
Consumer engagement can be driven by the tight integration of digital and in-person channels. But analysis to support branch site selection needs to go beyond basic demographics.
By Carla Trombly
Financial institutions are approaching a pivotal moment in managing their branch networks. As customer behaviors continue to shift the balance between in-person and digital channels, the question remains: How can a financial institution’s physical footprint align with the evolving needs of modern banking consumers?
The answer lies in harnessing the power of data-driven insights, drawn from advanced analytics and comprehensive market research. These tools ensure that branch networks continue to be strategic assets rather than cost centers.
According to new insights from PwC, digital transformation ranked as the top challenge that financial services globally expect to address in 2025. When executed thoughtfully, transformation efforts guided by advanced analytics can help organizations maximize cost-efficiency and deliver a more relevant customer experience.
Leading institutions such as Chase and PNC are using high-resolution data to determine whether to remodel, close, or relocate a branch. These practices go beyond traditional foot traffic estimates by incorporating demographic, transactional, and mobility data. Recognizing this growing need, DBSI, a leader in financial institution transformation for over 25 years, partnered with The Long Group, a firm specializing in advanced analytics and market intelligence, allowing the financial services industry to make more informed decisions.
According to a past study by McKinsey & Company, 60 to 70% of deposits and new relationships can still be linked to in-person interactions, showing that branches remain not just an expense but a potential growth engine. "Our clients and partners are constantly asking how they can stay ahead of trends.
Modern analytics are not only helping financial institutions to make stronger and faster decisions, but they are further empowering those companies to create more customized experiences for their customers and members," says EJ Kritz, Chief Experience Officer at DBSI.
Previously, many financial institutions chose branch sites using broad population metrics. Now, predictive analytics narrow in on local economic indicators, lifestyle patterns, and projected growth. This extends the conversation from basic headcounts to deeper insights into what people in a given area truly need. "Data is the currency of business," says Tom Long, Principal at The Long Group. "When properly harnessed, it illuminates the fit between market demand and a financial institution’s mission, guiding both tactical and long-view decisions."
GECU’s Neighborhood Branch Expansion
A powerful example of data-driven transformation involves GECU, one of the largest credit unions in Texas and New Mexico. Determined to expand its footprint without exceeding budgets, GECU partnered with DBSI to develop cashless branch concepts that streamlined routine transactions and facilitated high-value conversations.
By harnessing location intelligence and predictive modeling, GECU pinpointed new neighborhoods with strong demand. Since 2008, GECU and DBSI have collaborated on more than 20 projects, including new branch constructions, branch enhancements, and drive-up locations. As a result of these initiatives, GECU has boosted membership by 54.7% while maintaining a 100% in-branch self-service adoption rate—demonstrating how smart analytics, paired with on-point design and technology, can yield major gains for continued organizational growth.
While the rise in digital banking is undeniable, physical branches still serve a vital role for complex transactions and advisory services. Integrating digital self-service kiosks for basic tasks can free frontline staff to focus on consultative and relationship-building work, which enhances both efficiency and customer satisfaction. "Branches that marry transactional simplicity with employee-driven expertise are the ones that thrive," says Kritz. "It’s a perfect example of letting digital do what it does best while preserving that human ‘strategic advisor’ component customers are seeking."
Rather than viewing branch transformation as a one-time, universal project, many top-performing institutions treat it as a building block to transform their network to provide a consistent experience no matter the location. They regularly update layouts and introduce new technologies based on data-driven evaluations of each location’s transaction volume, demographics, and product demand.
"Too often, banks make sweeping network changes based on outdated assumptions. Instead, we recommend building a ‘test-and-learn’ culture underpinned by analytics," says Tom Long.
Looking Ahead
Branch networks were once considered real estate. Today, they represent flexible ecosystems that must respond to shifting demographics, new technologies, and changing consumer expectations. By combining predictive modeling with thoughtful design, banks, and credit unions can position their physical network as a strategic differentiator, capturing local opportunities and fostering deeper customer relationships.
"Data-driven planning doesn’t just shave costs, it amplifies growth," says Kritz. "It’s about ensuring every branch tells a story of relevance, service, and financial empowerment."