Tomorrow's branch today.

• Author: Sablosky, Tanja Lian
• Position: Feature - Brief Article

Based on intensive customer research, Washington Mutual, Seattle, is introducing an innovative design concept that makes the branch look and feet--more than ever before--like a retail store. Tellers ream the floor with headsets and portable computers. A mini-boutique sells software, books and other finance-related items.

As you walk into the circular store, you notice brightly colored signs, comfortable chairs and contemporary music. A khaki-clad staff member walks up and cheerfully asks how he may help you. Is this a new version of Starbucks? No, this is a new branch at Washington Mutual, the nation's largest thrift,

Washington Mutual refers to the branch concept as "Occasio," which it describes as an "innovative financial services store." Occasio--which is Latin for "favorable opportunity--borrows design ideas from retail stores and blends high tech with high touch. And, with 195 locations and counting, the concept is popping up from California to New York.

Bricks or clicks

The Occasio concept demonstrates how financial institutions can improve the customer experience through the use of extensive, detailed customer surveys and focus groups. In the mid-1990s while many banks were switching from bricks to clicks, encouraging customers to take their business online or to the ATM, Washington Mutual, was busy intensively researching its customers. The research began after the thrift had made several major acquisitions in the California market. A Washington Mutual (or WaMu, as it is widely known) team studied every detail of how customers make transactions, how the bank conducts business, how the branches look and feel, and how the thrift hires and motivates staff. Then Washington Mutual asked customers what they wanted in a financial institution. WaMu discovered that customers still wanted to come to a branch to work with friendly, competent people; but, they also wanted streamlined, simplified processes. After the initial research was complete, the next step was to decide how to def ine the thrift in the marketplace. The decision was to become a "category killer," something completely original.

WaMu then conducted several focus groups, drawing from a series of different age groups in several major California cities. Each focus group discussed what customers wanted in a bank for the 21st century and shared what they liked and disliked about current branches, as well as what they would add to create an ideal bank.

After the initial Occasio...