Foot traffic around banks and other financial institutions has significantly decreased in recent years. As of 2022, 78% of adults in the U.S. prefer to bank via a mobile app or website and only 29% of Americans prefer to bank in person.

Younger generations are especially resistant to physically visiting their preferred financial institution. For many, automated technology and mobile apps have become a better way to bank. With a digital-forward approach to banking, financial institutions are inventing creative ways to stay relevant. How do you get clients to return to physical branches in such a tech-savvy world?

With many companies adopting remote or hybrid work, demand for third spaces (places that aren’t home and work) is on the rise. Millennial and Gen Z workers enjoy a high-tech environment with free wi-fi and other amenities that allow them to work outside their home offices or traditional workplaces.

An emerging trend that has grabbed our attention lately is the integration of cafés within bank branches. These spaces are outfitted with advanced technology, free wi-fi, and food and drink amenities to invite guests into an experience they won’t soon forget. It might sound like a novel idea, but this fusion of finance and flavor is more than just a gimmick. It’s a strategic move to enhance customer experience, foster community engagement, and reimagine what a bank can be.

A New Way to Bank

Traditionally, financial institutions have been seen as purely functional spaces. There was a strict business-forward approach to handling one’s finances. Cafés are a refreshing way to break away from this norm and invite people into an interesting and engaging space. 

Through these innovative ways of transforming branches, financial institutions are starting to recognize that a visit to the branch doesn’t have to be a solely transactional experience. Instead, it can be a pleasant and engaging outing where clients can enjoy themselves.

Why the Trend?

Enhancing Client Experience

Financial institutions are consistently putting their clients first. This is why so many are focused on creating an exceptional experience for their clients. When a financial institution has more to offer in its space, clients are more likely to invest time in its branches.

With an integrated café, clients can enjoy an energizing coffee or a relaxing cup of tea while waiting for their appointment or completing transactions. Not only is this a great way to make the banking experience more enjoyable, but it can also be a way to reduce perceived wait times. People often feel stressed when completing financial tasks. Creating a more pleasant interaction with the financial institution can alleviate some of these negative feelings and leave clients with a more positive perception of a business.

Creating a Community Hub

Implementing a café in financial branches can create a more open, social space for the general public. With a welcoming community hub, a financial business is not limited to the typical functions of an FI. By creating a social space, banks and other FIs can strengthen their relationship with the surrounding community. 

In turn, members of the community may feel a greater sense of belonging within the company’s branches. This can foster client loyalty and better professional relationships with an FI’s clientele. This could ultimately better the reputation of your financial institution and even attract new business.

Increasing Foot Traffic

As digital and online banking continue to dominate the financial landscape, physical branches should offer more than just banking solutions to draw people in. By including a café space in your branches, you invite people into your space even if they don’t have specific banking needs at that moment. This can cause an increase in foot traffic that can ultimately lead to more opportunities for in-person client interactions and cross-selling of financial products and services.

While it might seem like extra expenses for your business, a café concept in your branches may ultimately be profitable and benefit your organization.

Enhancing Brand Image

Adding café spaces in a financial institution’s branches can also be a branding strategy. A tech-forward café or similar public gathering space positions a business as a modern, client-centric, and innovative company. This image can be especially appealing to younger demographics who value experiences and social spaces.

When clients enter your banking space, it will no longer be a dreaded experience surrounding the stress of handling finances, it will be an experience they remember fondly and look forward to recreating.

Providing a café or similar amenities shows consumers that your company is dedicated to evolving alongside your client base. By putting your clients’ needs first, you have a greater appeal than those dedicated to traditional business methods.

The Future of Bank Cafés

Many banks around the world have already begun implementing café and lounge spaces in their branches with great success. The trend is still in its early stages, but it has significant potential to change how people bank. As more banks and financial institutions explore this concept, we may see variations and innovations tailored to different markets or customer preferences. The future may bring about other public spaces like co-working areas, event spaces, or even small retail solutions.

The addition of cafés and similar conveniences to bank branches is more than a trend— it’s a strategic evolution in how financial institutions interact with their clients. By creating a more engaging, community-oriented environment, banks are not just offering financial services, they’re reimagining what it means to bank in the modern age. Whether you’re there for a financial consultation or just to enjoy a cup of coffee, the blend of banking and café culture may become a staple in the modern banking experience.

Choose Canteen

If you’re looking for a technology-forward partner who can help make this trend a reality for your business, Canteen offers many services that may align with the needs of your clientele. Our simple coffee bar solutions may be the first step to appeasing your employees and clients alike. From there, there’s even more room for improvement with our craft coffee partners, Tradecraft Coffee and Tea. Tradecraft can deliver the coffee bar of your dreams and create an unforgettable experience centered around beautifully crafted coffee and specialty tea.

Not sold on adding a café to your branches? Looking for other amenities to offer your clients? Consider introducing unattended retail spaces like micro markets. These markets are a great way to showcase your hospitality and offer your clients food and drink options they will appreciate.

Consult Canteen today and find out how you can transform your financial institution into a modern, innovative space your clients will love.