Umpqua Bank's Innovation Lab

Last week, I had the opportunity to check out Umpqua Bank’s latest branch concept – the Innovation Lab, and overall, I was pretty impressed.

From the press release Umpqua Bank put out about the branch:

“The store will serve as Umpqua’s Innovation Lab, showcasing emerging and existing technologies that foster community and redefine what consumers can expect from a banking experience. As a testing ground for new initiatives, the Lab will change regularly to feature new technology, products, services and community events.”

Complete with huge 25-foot interactive touch screens, merchandise on display for purchase, and customized computer stations, the branch looks quite different from the traditional bank branch.

Some of the more notable features include:

• Café style tables that serve as both a traditional table and as a computer station. The table top can be lifted open to give customers access to a laptop inside. The design gives customers the privacy they need while banking online in the branch and keeps the branch looking clean when the computers are not in use.
• The community table in the center of the lobby seats about 12 people and can be used as a meeting place for organizations or groups of people who need to get together. The branch manager told us that the table is used about 6 nights a week.
• You can’t miss the two huge interactive touch screens when you walk into the branch. One serves to display product information; the other is community-based which displays photos that customers submit themselves – it’s like a modern-day community bulletin board. The best part about the screens is that they are used for Nintendo Wii tournaments; the night of our visit, the bank was hosting a bowling tournament.
• Merchandise. Walking into the branch, you can’t help but run into the tables in the lobby displaying Umpqua Bank t-shirts, hats, and coffee cups. And, one table is set up to display the merchandise of local businesses/artists – which, I would imagine, is changed on an ongoing basis.

Overall, I was impressed with the branch – its layout, look and feel, and incorporation of technology. I think a lot of people visiting the branch (or seeing it in the news) will also be impressed; which raises a red flag for me. While Umpqua Bank has taken steps to explore the use of new technologies like the touch screens in its branches, it's an approach that simply won't translate well at many community banks across the country.

Like ING Direct with its cafes, Umpqua Bank is pushing the envelope in terms of its branch design and customer experience with the Innovation Lab. And after visiting either, you can see how each is aligned with their respective brands – and how the individual elements they’ve included in their branch designs (i.e. coffee bar with baristas, touch screens, etc.) simply will not translate well in other markets with other companies.

Umpqua Bank and ING Direct have given people something unexpected - and something for people to talk about. And while we've seen many bankers attempt to incorporate elements of either company's branch design into their own, successful financial institutions will be those that can generate buzz with something new, unique and reflective of their institution's brand and market.

Check Out the ING Cafe in Chicago

So, I finally made it down to check out the new ING Direct Café this weekend – and I was very impressed. The Café, which opened last month in Chicago, is the fifth physical “branch” location from the internet-focused institution, and if you have a chance, you should check it out yourself.
As the name implies, this isn’t your typical bank branch – it’s set up as a café serving coffee from Peet’s Coffee and the baristas double as personal bankers who probably spend more of their time making cappuccinos than opening savings accounts – but that’s exactly how ING intended it.

In an industry where financial services executives and marketers are looking for ways to drive traffic to their branches and get customers to stay a while, ING seems to have figured out what works for them – as the place was packed when we stopped in.

First of all, the café is in a great location with tons of foot traffic; it’s near Michigan Avenue shopping, an el station and a Loyola University Campus. And, the café is impossible to miss – as the orange façade screams ING to anyone within two blocks.

Once inside, it definitely feels more like your local coffee shop/internet café than your typical bank branch. Teller lines are non-existent; instead, you are greeted by the baristas – mine happened to be the branch manager. There are no personal banking desks – but, there are tables and chairs, lounge chairs, and about a dozen internet kiosks for anyone to use free of charge.

My wife and I had intended to take our drinks to-go, but, after ordering our drinks the manager said “I hope you’re planning to stay and drink these here – we have cool espresso glasses…and it always tastes better from a real glass.” So, we decided to stay. And, as our drinks were prepared we continued our conversation with the manager, who let us know about the weekly specials. On Fridays, customers’ drinks are free if you wear orange (the ING brand color); and, on Mondays your drink is half-price if you use your reusable ING travel coffee mug.

Me with my "really cool, real espresso glass"

In my conversations with the branch manager, I learned that the café also has a community room that is available to anyone to host presentations/seminars at no cost. And, that the entire facility is available to anyone after hours if a larger space is needed – this is also available for free. The entire space is carefully planned out – with a good mix of entertainment and merchandising, and the brand is reflected everywhere.

I told the manager that I was surprised that he didn’t ask us if we were ING customers or try to pitch us any banking products – and he said “that’s not what we’re here to do; we want you to enjoy yourself and we know that you’ll ask us about our services when you’re ready.”

Perhaps the most interesting part of the experience came as the customer in front of us at the coffee counter tried to tip the barista – to which the barista said “thank you, but we’re a bank – and we want you to save your money.”