Chase’s reverse evolution in bank branch design
What’s it going to take to drag Chase out of the 19th century?
Before WaMu was acquired by Chase, they spent a hefty chunk of change ($1 billion) re-designing and modernizing many of their bank branches. Improvements included free-standing teller pods and cash dispensing machines, a kid’s play area, and bright visuals – all in an effort to create a more inviting retail atmosphere. The move was intended to transform the banking experience. Tearing down the physical barrier between teller and customer fostered openness, friendliness, transparency and an impression of trust. Visiting one of WaMu’s “Occasio” branches felt more like stepping into a boutique than a traditional bank.
No more! Chase aren’t having any of WaMu’s “touchy-feely branch design“. Just as customers were finally getting accustomed to the new boutique environment, Chase lumbered in with their time machine to transport WaMu back to the 19th century, where banks belong! All of the Occasio branches are being dismantled. Free-standing counters are being replaced with an imposing line of windows, including bulletproof glass, (no joke). All bright colors will be extinguished and smiling will not be allowed.
As this Wall Street Journal article puts it:
New owner J.P. Morgan Chase & Co. is now dismantling it all, right down to the signs that promise “free checking, free smiles,” and basically dragging the former WaMu branches back to the past.
The worst part is that Chase think their reverse evolution is a good thing. Charles Scharf, CEO of Retail Financial Services at Chase, says that traditional branches “are superior in every way.. they might be boring, but they’re practical.” Being progressive, forward-thinking bank branding experts, we would beg to disagree. As would the many analysts who say that, in the spirit of customer retention, now might not be the best time to bulldoze through WaMu’s “warm and fuzzy” branches. One of Chase’s reasons for installing traditional teller windows is to free up room in the branches in order to push credit cards and mortgage products. Because the one thing we need right now is, you know, more debt.
I have to say that my recent visit to one of Chase’s Occasio-turned-traditional branches was very disappointing. Service was slower, probably because the free-standing cash dispensers had been removed. The atmosphere was dreary and the tall line of teller windows made me feel less than welcome. Is this really how they intend to keep or attract customers? Because I didn’t feel especially wanted.
When it comes to branch design, maybe Chase should take a hint from more progressive banks around the world. These recent posts could offer some inspiration:
Bank architecture eye candy – part 1
Bank architecture eye candy – part 2
El Banco Deuno’s boutique experience
Barclays leverages Microsoft Surface to create new store concept
Environments matter
April 27th, 2009 at 11:17 am
That’s it! I quit Wamu/Chase!
April 27th, 2009 at 11:23 am
Yeah, me too. Especially since they dropped the interest rate on my online savings account (and all their other accounts). It’s like they’re on some covert mission to lose deposits.
April 27th, 2009 at 2:35 pm
That’s depressing. Despite the fact that I don’t actually go into the bank that often, I don’t see any reason that the inside should be dull and sterile.
April 27th, 2009 at 2:49 pm
I have thought about doing a blog post on this. Because I don’t think Chase had a choice. I believe that the Occasio is a branded item developed by Wamu. Chase bought the brick and mortar branches when the OTS seized the bank. They did not purchase the branding. That still belongs to WMI the holding company.
The logos, the messaging, the bright colors all belong to the copyrighted/trademarked brand of the holding company, which is trying to restructure in bankruptcy court.
Chase has their own brand, and it is NOT WAMU. It only makes sense for them (legally) to align new offices/branches to their brand. Not to mention that WAMU admitted that their branded branches posed security issues with the set -up. That they didn’t foresee in design.
There is definitely a lot of stir around these changes, maybe chase is in need of a rebrand, but I wonder if their current customers would be as unsettled by the changes as Wamu customers?
April 27th, 2009 at 3:19 pm
nahbois, you definitely have a point! I agree that Chase could not retain the WaMu look and feel after acquiring the branches. The WaMu brand had to disappear, so cosmetic changes were bound to occur.
That being said, free-standing teller pods and “consumer-friendly” layouts are not unique to WaMu. Other banks have them (like First Mutual Bank & Umpqua Bank), and I feel like most progressive banks now build their new branches with open retail-style environments.
From an interior design/ customer experience perspective, Chase is literally stepping back in time. While other financial institutions now shy away from using barriers like bulletproof glass, Chase installing it in hundreds of branches that previously had none.
April 27th, 2009 at 7:14 pm
For another analysis of Chase’s move, see this article here at The Financial Brand:
http://thefinancialbrand.com/2009/04/15/why-chase-is-killing-occasio/
April 28th, 2009 at 8:07 am
Hey Jeffry,
Chase’s small business and private-banking services do necessitate some design changes, which is good to keep in mind when analyzing the bank’s behavior. But does that mean they stop serving regular customers? How about all the WaMu personal accounts they acquired? They inevitably remain part retail, I think.
John Ryan’s blog makes a great point when he touches on the effect of the financial crisis, saying that “appetite for experimentation is temporarily suppressed”. I wonder how different Chase’s behavior would be if the overall industry was healthy, optimistic, and open to innovation?
April 30th, 2009 at 6:22 am
While not as drastic, the same thing happened here in Chicago a few years ago when Bank One branches became Chase branches. I remember my first transaction after the Bank installed the bullet proof glass at the teller windows. I was surprised.
I’m sure the effect will be even more jarring for WaMu customers who are used to a more casual, fun, and open branch environment.
The real question, however, will be whether the branch environmental changes will cause people to leave the bank. Chase has spent the last several months moving accounts from WaMu, engaging customers and welcoming them to their new bank. While the new branch environment may seem dated, I doubt it will be enough to cause most people to leave.
April 30th, 2009 at 8:07 am
Hey Brady, it’s nice to hear about someone else’s experience with Chase’s branch changes. It sounds like they are doing the same thing to all the banks they acquired, across the board.
Many people, especially those who bank online, won’t care about the dated branch design. Chase, however, is causing me to move most of my deposits away from the bank. Not so much because of the environment (I rarely visit brick-and-mortar branches), but because their rates are terrible! Since Chase took over, the APY on my savings has totally plummeted. Have you experienced anything like that?
August 5th, 2009 at 12:32 pm
[...] layout that is part of the Chase brand. Read more about the WaMu/Chase branch conversion here and [...]