Courtesy, Saratoga National Bank & Trust
David DeMarco
David DeMarco, president and CEO of Saratoga National Bank and Trust Co., said the main driving force that determines why one branch closes and another opens is customer behavior. That behavior has changed greatly over the past 15 years.
The pull customers once felt to have a branch near their homes has declined as more people bank online and cash checks on their phones, he said.
He said this during a recent interview after his bank announced they would close two branches, one in Wilton on Route 50 near Jones Road and one on Traver Road in Gansevoort. They will open a new branch this fall in Wilton on Route 50, just east of Northway Exit 15; the date is set as Nov. 1. He added that employees will be moved and given different opportunities within the company rather than be laid off.
"We’re evaluating our entire branch network all the time,” DeMarco said. "It's no secret, the decline in branch transactions."
Like so many industries, the coronavirus pandemic accelerated changes. As bank lobbies closed, the drive-thru—still a favorite of many customers, especially in winter—remained open. However, people who might have been dragging their feet tried digital and found they liked it, DeMarco said.
He said that he sees no end to bank branches completely. People like to have a one-on-one conversation, to stop in and say hello to a person who knows their name. Customers want to come in if they are having trouble with an account or similar problem.
"Small businesses in particular really rely on that bank branch," he said. They want to talk about business lending and the challenges in growing a business. At the same time, the bank said in a second quarter report that they rolled out a new mobile app for business customers.
Still, he said we are seeing a major shift in the role of branch banking.
DeMarco sees them becoming financial counseling centers, places where people will come to ask questions, he said, to discuss loan options, wealth management, business insurance and other financial needs with the help of a professional at the branch, he said.
"The branch teller piece is becoming a smaller piece of the building," he said. At the new location customers will see teller windows, but fewer, relative to the amount of office space. The new branch will have a total of five offices and a conference room.
This actually allows for a smaller branch office building overall because they need less space for people to stand and wait for the teller, he said.
When they look to find a new branch location, they look for a visible location with great access for their customer base. The cost of operations and staffing play a role too. Consolidating the two branches into one also offers efficiencies and a better opportunity for growth.
"We expect to see more change,” he said. "Our objective is to have happy customers."
Sidebar: David DeMarco said that some branches have “teller pods,” a sort of advanced ATM kiosk where a teller helps customers. They replace the traditional tall counter that tellers often stand behind. Cash drawers are never open at the kiosk, so the transactions are electronic and secure. Also, at a few Saratoga National branches, the drive-thru teller is actually seen on a video screen. These will not be a part of the new branch at first, he said, but they may be added later.