Branching Out
By Brady Gunnink

Realtors and local politicians have long touted Arlington Height’s convenience as a key to the popularity of this village. While “convenience” means very different things to community members and corporations, both benefit from proximity to certain necessary services, such as banks and ATMs. In Arlington Heights alone there are 13 Harris Bank branch locations within a five-mile radius, as well as several ATM locations in Speedway convenience stores and Northwest Community Hospital. From any location in the village, banking services are mere minutes away.

This convenience-driven approach has led to the explosive growth of branches, according to the Federal Deposit Insurance Corporation (FDIC), which reports that the number of bank branches in the United States has grown every year since 1994. This despite the prediction in the late ‘90s that “bricks and mortar” institutions would become outdated.

Consumer business is one of the primary sources of profit in banking institutions. The New York Times reports that in 2005, banks made nearly $45 billion dollars from deposit gathering, the same as credit card lending and mortgages combined.

Checking accounts are very important to banks. These accounts are profitable by themselves, but serve an even more important function: the customers who sign up for checking accounts will likely also come to the same bank for higher-profit services such as mortgages and loans. Thus, it is critical for banks to gain customer loyalty at the most basic level, and this means giving them convenient service.

To reach the public, go where the public goes. This is the philosophy behind the explosive growth of branches, as well as online banking, which is utilized by nearly one in four adults, according to the Pew Internet & American Life Project. The more convenient and readily available banking services are, the more likely customers will be to join and stay with an institution.

This concept has changed even the look of the traditional bank branch. Many branches are moving away from the traditional “bricks-and-mortar” model and locating branches inside grocery stores and other retail outlets. Even the traditional bank hours are changing. The standard business hours of many institutions have expanded to include early mornings, evenings and weekends. All of this is done for the sake of providing the most accessible service possible, which in turn provides banks with a valuable customer base.

Harris Bank plans to continue its convenience and service strategy, with plans to almost double their number of branches to 400 over the next several years. When asked what he thought ultimately helped a customer choose banks, Jack Lloyd, regional president for Harris, confidently answered that “Customers, be it for themselves or their business, will always want to have face-to-face interaction with their bankers.”

Harris customers in Arlington Heights can rest assured that the smiling face of a bank representative will be close by, no matter where they are in the village. Even though they continue to expand, Lloyd insists that Harris will continue to be “here to help – whenever and however we can.”