After years of borderline apocalyptic news for branch banking, there is an increasing number of banks undergoing expansion plans. A 2025 American Bankers Association article explores this trend in the United States, offering compelling reasons for both national and regional banks.
The reasons cited range from “certain ‘got-to-be-there’ markets, including all the top ‘x’ metropolitan statistical areas by population’ to economic diversification.
But to ground it more, it’s worth looking at this particularly insightful, first-hand explanation from this Adrenaline podcast, where Jeffrey Martinez, Executive Vice President and Head of Branch Banking at PNC Financial Services Group discusses the “$1.5 billion investment in their branch network and how the bank’s continuing commitment to the branch is fueling even more customer connection and institutional growth.”
We will focus more on Jeffrey’s insights later in the article.
Branch banking in Europe
In Europe, we’re seeing similar success stories from banks that have undergone successful expansion strategies.
Raiffeisenbank
One success example are the Swiss-based banked Raiffeisenbank Regio Frick-Mettauertal and Raiffeisenbank Aare-Reuss, which are both part of the Raiffeisenbank group.
Since 2022, there have been nine hybrid branches that use Unblu’s digital reception technology to service local customers. This has allowed them to provide 95% of traditional, in-person services via digital channels – accessed from the customer reception.
The results of this venture have been impressive, with:
As Marc Jäger, Chairman of the Board at Raiffeisenbank Regio Frick-Mettauertal, said, this is, “proof of how technology can improve traditional banking.”
Valiant Bank
Likewise, the Swiss bank Valiant Bank has taken an expansionist approach to branch banking, initially opening branches in three new areas after beginning their initiative in 2017. This allowed them to achieve one agent per 5-6 digital receptions and reduce the number of specialists within bank branches.
The results were almost instantaneous, achieving:
Cost savings
Business growth
Service experience
Enduring success for Valiant
In 2025, Valiant published a public report on their 2020–2024 branch expansion strategy, which provides an update on their efforts.
To date, the bank:
- Is now present in 15 cantons
- Opened their 14th branch in Muttenz at the end of 2023
- Completed geographic expansion from Lake Geneva to Lake Constance one year ahead of schedule
- Created 125 positions as part of the expansion
Most importantly, the strategic initiative has led to annual recurring savings across the entire bank of CHF 15 million in total.
Strategic frameworks for branch banking
Regarding strategic frameworks, context is essential before undertaking or committing to any initiative. Jeffrey Martinez from PNC explores these fundamental prerequisites well in his podcast interview linked above.
Focus on people
Remote technology should never feel remote. As Jeffrey says, “If someone is choosing to walk into your branch, they are choosing people.”
That doesn’t mean that they need to physically be there with you, but the advice and level of service must feel utterly human. This comes down to trust and confidence, a fundamental bedrock of success in the retail banking industry for Jeffrey.
“People are inherently positive around the way they want their finances to be viewed. The way they want this forward momentum and to grow. And people want to grow in a growing financial institution. It says a lot about our own financial picture to be able to make [a large strategic investment]”.
Confidence in your institution directly translates to confidence in an individual’s finances. And this must be kept front and center of any branch expansion initiative.
Yes, it must work for the bank in terms of cost effectiveness and profitability. But the fact is, if it doesn’t work for the customers, it doesn’t work. Period.
Key takeaway
Principle: If it doesn’t work for customers, it doesn’t work.
Actions:
- Ensure digital and in-person channels feel equally personal and trustworthy.
- Train staff to deliver empathetic, confidence-building advice.
- Measure success by customer trust, not just operational efficiency.
- Align business KPIs with customer outcomes.
- Prioritize long-term trust and confidence over short-term cost savings.
- Monitor customer sentiment as closely as financial performance.
Understand your strengths
Jeffrey says, “new does not fix broken,” when walking about the “assumption that we got this new plan so we’ll apply something new to it and the outcome will be different.” Instead, he asks you to “talk to me about the last thing you deployed and how that landed is a big measurement on things moving forward.”
He continues: “Execute on the things you have going on today flawlessly as the only precursor to being able to execute flawlessly going forward.”
Key takeaway
Principle: “New does not fix broken.”
Actions:
- Conduct post-implementation reviews of recent initiatives to assess impact.
- Strengthen and refine current operations before launching new projects.
- Focus on flawless execution in today’s branches as a foundation for growth.
Winning in your geography
Grounding this in the topic of branch expansion, he asks – are you currently winning in your geography?
“Are you winning in your zip code, cause if not, how does it work in a new area? New isn’t the catalyst for change, it’s more an acceleration of your existing model. You can go faster as you continue to deploy more resources and new locations but it isn’t a dynamic change.”
We saw this attitude clearly with Valiant Bank as outlined above. Although the context is different (regional Swiss bank vs. national American bank), this fundamental truth rings true in both situations.
Valiant found a model that worked. It was cost-effective, profitable, and popular among both staff and customers. This allowed them to replicate this model to achieve their expansion success.
Key takeaway
Principle: Expansion accelerates success – it doesn’t create it.
Actions:
- Validate market leadership in existing zip codes before expanding.
- Use success stories (like Valiant Bank and Raiffeisenbank) as proof points for replication.
- Avoid entering new markets without a winning, scalable model.
Perfect your model
Jeffrey talks about how good enough is never good enough. Every branch must deliver an excellent experience to ensure that customers not only return but also become advocates for the institution. A single weak link in the network can erode trust and diminish the brand’s reputation. Excellence at every location sets the foundation for scalable, sustainable growth.
Principle: “Good enough” is not good enough.
Actions:
- Standardize a branch model that balances profitability, cost-effectiveness, and customer satisfaction.
- Continuously refine processes and customer experience.
- Ensure every new branch delivers consistently excellent service.
Stem branch closures and drive expansion with Unblu Branch
The banking landscape is ever-changing. While digital banking has transformed the business model irrevocably, the pendulum is returning and institutions are once again focusing on branch optimization and expansion.
For financial institutions looking to regain their physical market share, the customer experience must be put front and center for any strategic initiative to work.
But this isn’t the only consideration for retail branches. To be able to deliver high-level customer engagement, it must also be financially viable for the bank.
In this context, Unblu Branch helps financial institutions to navigate a competitive landscape and reduce operational costs – facilitating branch growth. Our digital branch technology empowers retail banks to offer a personalized service that meets customer preferences.
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