Branches in Today’s Banking
12/17/23
By Brian Ruisinger, President and Chief Executive Officer
RBAZ just celebrated the Grand Opening of our new branch at 7373 N Scottsdale Rd., a fantastic new location for our brand, bringing our boutique-style of face-to-face banking to the heart of Scottsdale. Some may be asking: Why is RBAZ opening branches when the big national and regional banks are closing locations? Good question, glad you asked.
Why Our Geographic Presence Matters
It is certainly a fact that check volumes (remember those) and lobby traffic at bank locations have been decreasing for many years. However, for a community bank operating in the 5th largest city in the U.S., geographic presence is necessary for growth and diversification of its customer base. Customers will travel from one end of town to another for a loan request, but rarely for a deposit relationship. Since we are not a transactional style bank, geographic presence remains an essential part of our growth strategy. We find often when we open new branches that there is a convenience factor with existing customers who either live or work closer to a new branch and the relationship is deepened by providing a greater geographic convenience for them in addition to growing a new customer base.
The Evolution of Banking: Digital Vs. Personal
The proliferation of online and mobile banking apps has been a revolutionary development for banking, not seen since the ATM and the Check 21 inventions rolled out in prior decades. Many assumed these digital resources would spell the end of the bank branch as we know it. With a customer base of primarily business owners and operators, the need for personal banking remains strong. These commercial customers use our online and mobile digital delivery methods as ancillary components of our relationship in conjunction with in-person activities at our branches. Lastly, there is a psychological component that is comforting to a customer or prospective customer to see the physical presence of their financial institution knowing it exists with real people and facilities to cater to their needs. Online banks began popping up about a decade ago and can be good options for individuals who do all banking online, don’t own or operate a business and don’t need immediate access to their funds in the event of an emergency or large cash withdrawal. Many are skeptical of sending money to an online bank in another state, preferring the peace of mind of a local presence providing that the bank exists, and they can visit any time.
Expansion Plans and Strategic Approach
RBAZ now has branches in central Phoenix, Gilbert, and Scottsdale. When viewing a map of the Valley, it becomes clear that our next expansion will be to the west as we do not have a location west of the I-17. The new Loop 303 freeway and I-10 expansion have served to “unlock” tremendous growth in cities like Peoria, Goodyear, Glendale, Surprise and as far out as Buckeye. We believe strongly that RBAZ’s style of personal banking will resonate with business owners, operators, and individuals in the West Valley. We have been very selective in terms of our branching strategy, exercising patience in locating ideal locations that fit our strategy and our customers’ desires.
Banking on Relationships
RBAZ has all the latest technology available to customers who choose or need only those digital options, but we believe nothing replaces the face-to-face, boutique style we provide. We don’t have an 800 number, instead RBAZ answers the phone with a real, live banker every work day. Local decision-making and as our campaign asks, “Who’s Your Banker?”. The answer to that question determines what kind of banking relationship you have.
Shop Local. Dine Local. Bank Local.