Bank merges elite travel clubs with branches at U.S. airports | Wilnesh News

Nicolette Nelson was late for her flight back to Fairbanks as she rushed to her gate at Cincinnati/Northern Kentucky International Airport (CVG). Due to health issues, she was unable to make it out of the hospital and ended up spending the night in a Cincinnati hospital. The next day, she had recovered and was waiting for her flight home, which was repeatedly delayed.

So Nelson spent hours of the delay waiting for her flight and killing time on her electronic devices in a quiet cubicle in an unlikely place: a bank.

“It was really quiet, and that’s what I needed,” Nelson said.

Fifth Third Bank last month renamed its 40-year-old CVG branch into a lounge and loan center in an attempt to attract such travelers. Weary travelers and constantly working entrepreneurs seek out prime spots within the bank away from the airport hustle and bustle, while business travelers use the center to squeeze in more business.

“A woman wanted to rent my office to work,” recalled Lisa Slocum, airport branch manager of Fifth Third Bank. Slocum directed the woman to the branch to find other options.

Other customers use banks purely for transactional purposes. Hannah Thelen and her mother, Ashley Thelen, passed through on a recent day on their way to Spain and stopped to exchange money.

“I love the central location here,” Ashley Thelen said as she exchanged dollars for euros.

It’s a central location for Flyers, but requires navigating a maze of trams, moving walkways, and concourses to get to Terminal B, and it goes through a TSA checkpoint so the branch doesn’t turn customers off the street.

Fifth Third Bank isn’t the first financial institution to create an airport lounge feel. Capital One Bank closed its branch at Washington, D.C.’s Dulles International Airport in 2020 and instead opened an “airport lounge” for Dulles cardholders, as well as similar locations at airports in Denver and Dallas . The lounge offers the same amenities as an airline rewards club, but is only available to Capital One cardholders, and banking services aren’t as much a part of the experience as they are at Fifth-Third’s CVG branches.

Mindy Kershner, CVG senior manager of communications, said if CVG were a city, in most cases it would be the fourth or fifth largest city in Kentucky, with 16,000 workers working at the airport campus every day, in addition to the 9 million Passengers shuttle through the airport. That’s a lot of potential bank customers. However, there are relatively few full-service airport bank branches, which is surprising in a retail environment that often resembles an upscale mall rather than a terminal.

Wings Credit Union operates a small, full-service branch in Minneapolis-St. Brent Andersen, vice president of marketing for St. Paul International Airport and Wings, said the branch serves the large number of airport employees rather than passengers. However, in terms of visibility and advertising, setting up a branch is a no-brainer even if airport rents are higher, he added.

“We have to spend more money on other advertising to get that kind of visibility,” Anderson said, crediting the branch with attracting new members as well.

For Fifth Third Bank and some other retail banking players, airport branches are more than just expensive brand advertising (although that’s certainly part of the appeal). They are also full-fledged financial hubs, and in a digital age where bank branches are under existential scrutiny, some financial firms are betting on airports as a viable and visible place to maintain their signature.

Big banks are adding hundreds of branches

Banks and credit unions opening branches at airports are just another sign that the long-predicted demise of physical banking at the hands of digital technology isn’t quite happening as expected.The long-term trend remains Reduce retail footprint, but branches have made a comeback. Actually, FDIC data Data show that in 2023, the number of branches nationwide will grow annually for the first time in ten years, reaching nearly 70,000. The rebound comes as banking giants JPMorgan Chase and PNC announced plans to open more branches – Chase will open as many as 500 branches and renovate 1,700, while PNC will spend $1 billion over the next three to five years Open 100 new branches and renovate another 1,000 branches.

Last month, Fifth Third Bank, the tenth largest depository bank in the United States, renamed its 40-year-old CVG offices, receiving extensive local media coverage and cementing its commitment to airport banking. .

“There are very few full-service branches in airports, and this one is unique,” said John Sieg, regional retail director for Fifth Third Bank, which is trying to create something similar to Delta’s Sky Club. Services, but does not provide on-site banking (cashing checks, checking balances, and exchanging currency) and is open to everyone. And you won’t be charged an overdraft fee for hanging out on their couch.

“Our goal is to give travelers a place to do all their banking and hang out with us. If their flight is delayed, they can hang out with us all day. We already have customers doing that,” Seager said.

Wells Fargo operates a full-service branch at Harry Reid International Airport in Las Vegas, and according to a bank spokesperson, Wells Fargo has a multi-year relationship with the airport involving the branch and multiple ATMs located throughout the terminal. machine. Although Wells Fargo said nothing about the branch, it’s easy to imagine why it became popular in Vegas, since slot machines are as much a part of the Vegas scene as espresso machines.

Truist Bank (formerly SunTrust) operates a full-service bank branch at Atlanta’s Hartsfield-Jackson International Airport. Serving customers remains a top priority at the airport, but Brian Davis, director of consumer and small business banking communications, also noted , being at the airport can provide the bank with “a high level of brand awareness to the millions of passengers passing through.”

Still, not everyone in the industry feels anxious about the personal finances of getting through security and arriving at the gate on time.

“I think it’s a bad idea,” said Paul McAdam, senior director of banking and payments intelligence at analytics firm JD Power. McAdam said ATMs and advanced-feature kiosks are one thing, but there’s more. Outside the largest markets, full-service branches are overkill. There are three credit unions located within the terminals at New York City’s JFK Airport.

“I feel airport bank branches can handle a lot of transaction volume but add very little value to customers who want to open an account or receive advice. Who wants to open a new account at an airport?” McAdam said.

Financial giants are testing the concept of bank-branded destinations more broadly. Capital One has opened a handful of cafes in New York specifically to cater to remote workers, providing a financial atmosphere without the need for large sums of money or tellers monitoring your every move.

With most travelers focused on travel, Fifth Third acknowledges that banking is not top of mind for many airport customers. Sieg said the CVG branch handles about 1,700 transactions per month.

“It’s probably a lower number of transactions than at a traditional bank marketplace or office,” but the visibility of the branch makes up for the drop in transaction volume, he said.

The branch offers a range of spaces, including a service bar where travelers can tap on their tablets while watching coffee-grabbing travelers hurrying to the gate. The bank also has a completely private office with a phone, water station, sofa and upholstered chairs, which is attractive for remote workers.

“Whether you’re a customer or a non-customer, we want to display the best welcome sign possible. Everyone is invited and can use the space,” Seeger said.

However, if someone feels the need to apply for a mortgage or open a savings account during their layover, the branch has that capability.