Union Savings Bank CEO rethinks the branch concept
With 26 branches ”” all in western Connecticut ”” Danbury-based Union Savings Bank and its new CEO Cynthia Merkle face a quandary.
Banking is changing and Merkle, who in 21 years with Boston-based Eastern Bank participated in its growth from 10 to 90 branches, is remaking it for new demands. She was named president of USB in April. As CEO, she took the reins this month replacing Fran Dattalo, who retired at the end of 2014.
- Cynthia Merkle
A 2015 banking challenge is to find a balance between physical and online presences. Merkle has thrown a curveball into the equation by reimagining two branches as full-service advice centers staffed by a commercial banker, a mortgage specialist, a wealth manager, a representative of services for business cash management and the branch manager.
“Traditional retail banking ”” checking, savings ”” is a whole different animal these days,” Merkle, 57 and a Danbury resident, said. “Everyone in the industry is struggling with what a branch is. Our market research says you cannot do away with them.”
Merkle initiated what USB calls “solutions team” banking. “We”™re experimenting with a model,” she said.
The USB Monroe branch was the idea”™s incubator. Merkle said it saw increased traffic and transactions. “I would say the test has been successful,” she said. A second solutions team began operations in the Southbury branch Jan. 1.
“When one member of the team identifies a need with a potential customer, instead of the next step being a handoff somewhere down the road, a team concept begins,” Merkle said. “We establish goals. And by doing this, the branch of the past is the branch of the future as a sales center and anchor.”
USB witnessed a 7 percent uptick in commercial lending compared with 2013, Merkle said. “The mortgage side has been lagging,” she said. “I”™m hopeful we”™ll see something positive on the residential real estate side this year.”
USB has assets of $2.3 billion in loans and investments. The “union” in its name, as hinted by its 1866 founding, is the Union that won the Civil War and the name has remained unchanged across time.
“It”™s a pleasure to be here,” Merkle said. “Union Savings Bank is very well regarded in the marketplace. We”™re excited to bring it forward as we start our 150th year. We are going to be as relevant today as we will be in the future.”