Studies indicate that many customers appreciate having access to a physical branch—despite having a proclivity for electronic and mobile banking. A survey by global professional services firm Accenture, for example, found that most bank customers like seeing physical branches in their neighborhood, as it confirms the stability and availability of their financial institution. In particular, they value branches for infrequent but important functions like opening accounts and obtaining financial advice.

A recent survey by First National Bank Alaska (FNBA) indicates that customers value the services provided within its twenty-eight locations. “About a third of customers ranked in-branch banking as their preferred banking method, and almost 20 percent prefer drive-thru banking, compared to online and mobile services,” says Treasury Management and Anchorage Branch Administration Director Elaine Kroll.

Many customers enjoy having convenient access to a physical branch. That’s a key reason Denali State Bank continues to maintain four offices in Fairbanks as well as one in Tok. “They drive by and see our signage,” says President and CEO Steve Lundgren. “And the more often they see our logo, the more comfortable they feel banking with us.”

Lundgren says it’s not unusual for a financial institution to have only one location in a city the size of Fairbanks, where residents can drive across town in fifteen minutes. But Denali State Bank is adamant about operating multiple branches. “I think it is a testament of my bank’s commitment to our community and customers, particularly in this time where we’ve seen larger banks that are based outside Alaska close branches,” he says. “We are not going to do that; we are a long-term bank of this community.”

Branches will always be a source of strength for KeyBank, says Derek Pender, regional retail leader for Alaska and Washington. Over the last few years, KeyBank has experienced a shift in the way its clients visit and utilize branches, but investments in Alaska allow the institution to deliver the best possible experience. “Our investments in the digital experience—and in our teammates, so they can advise with excellence—are important to us and our clients,” Pender says. “We value relationships with our clients and work hard to help them achieve their financial goals and dreams.”

Branches are also integral to customer relationships at Wells Fargo, in combination with its online and mobile channels and automated teller machines (ATMs), according to David Larkin, region branch network executive Alaska and western Washington. “Our branches are a place where customers can meet with a banker for advice and guidance and have a meaningful financial health conversation to help them reach their goals,” Larkin explains. “Today’s branch visit is about deepening our customer relationship, where customers engage in financial checkups with bankers to create and fine tune long-term financial goals.”

Since 2019, Northrim Bank has added its Fairbanks West full-service branch. It also added full-service branches in Kodiak and Nome. “In Nome, we were able to quickly open a branch earlier than planned after Typhoon Merbok hit, as we saw a huge need in the community for more access to banking services,” Zins says. “We recently opened a Loan Production Office in Homer, and we have just started construction on a full-service branch that will open in 2024.”

Northrim has also remodeled several branches in Anchorage. “Years ago branches were built to focus on the vault and the teller lines,” Zins explains. “Our branches are built now to focus on the community and enhancing the relationships with our customers.”

With its service-oriented culture, FNBA—which has physical locations in nineteen communities in Alaska—constantly analyzes branch and transaction patterns and adapts to meet customer needs and industry trends. Case in point: in 2020, FNBA moved its 18,000-square-foot Anchorage Main Branch location from Fourth Avenue, built for long lines of check-cashing customers, to a smaller footprint on K Street. “Our newer Metro Branch is approximately 2,500 square feet,” Kroll says. “Customers and employees alike are very happy with the success of our modern and smaller location.”

With thirty-seven locations in Alaska, Wells Fargo is endeavoring to “rightsize” its network. Since January 2021, the bank closed four branches. “We may continue to combine two older existing branches into one better situated location, as was done in September 2023 when our Wasilla branch was consolidated into our Cottonwood Creek branch approximately 2.2 miles away,” Larkin says.

Branch consolidations do not diminish the importance of Wells Fargo’s presence, Larkin says. “We are committed to serving all communities, including rural markets, and we know our customers value our presence in small, remote towns,” he adds. “Wells Fargo is proud to have the number one market share in Alaska with 41.86 percent ($6.48 billion), according to FDIC market data for deposits as of June 30, 2023.”

Denali State Bank has also enhanced some of its locations. A few years ago, the bank’s Chena Pump office received a minor facelift. Now the manager is situated in the lobby, which supports better customer interactions.

A similar strategy went into an extensive renovation of the bank’s Fairbanks headquarters. Prior to the remodel, the manager, customer-facing employees, and most of the main office floor were behind the teller counter. “So we reduced the size of that backroom working area and moved the manager out into the lobby,” Lundgren says. “All of our customer service, new accounts, and customer-facing people now all have workstations directly accessible to our customers.”

Denali State Bank also relocated its entire executive team downstairs to offices with glass walls adjoining the lobby. Customers—many of whom are friends—can greet the management team when they stop by the main office. “That’s one way we as a small bank can differentiate ourselves from our larger competitors,” Lundgren explains. “I think it’s improved our reputation as a customer-focused bank.”

In 2020, Mt. McKinley Bank revamped its main office to expand electronic services. Before then, retail customers typically had to deal with a teller, and businesses would work through the information technology department. “Our thinking was to bring all of the services under one place,” Mongold says. “It’s been a really positive thing from a customer service standpoint.”

Mongold says Mt. McKinley Bank is considering further expanding the department to include a call center.

Several KeyBank branches have also undergone full transformations, including collaboration with other lines of business to deliver an all-around engaging banking experience, Pender says. “This also is an example of KeyBank’s commitment to our presence in Alaska and the critical retail, small business, and commercial clients we serve,” he says.

Northrim Bank is also focused on enhancing its digital platforms. And Wells Fargo, while updating branch location floorplans to create more space for conversation and consultation, is also continuing to invest in its technology. In October, the bank announced the expanded availability of LifeSync, a personalized digital approach to aligning customers’ goals with their money. In September, the bank announced the enhancement of its Fargo virtual assistant.

Over the next year, Mt. McKinley Bank will enhance its digital capabilities for customers. The bank is hoping to roll out online account onboarding. The bank is also considering deploying interactive teller machines, especially for North Pole and Delta Junction. “We are always looking for good opportunities to provide better customer service,” Mongold says.