---
title: "Small Format, Big Impact: Benefits of a Micro Branch"
description: What is a micro branch and what are the benefits of building a smaller footprint?
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---

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# Small Format, Big Impact: Benefits of a Micro Branch

[by La Macchia Group](https://www.lamacchiagroup.com/resources/author/la-macchia-group)

You've heard about them, but what exactly constitutes a micro branch? In our experience, they are a small footprint location with a large digital presence, but do not conform to a defined set of criteria. Many of these branches are under 1,500 square feet, are heavily branded, and feature convenient technology like ITMs and ATMs. The choice to staff the location with on-site bankers depends on the strategy of the financial institution, and many times the services can be achieved using video tellers. 

The rationale behind the micro branch is simple. A smaller footprint requires less overhead, which enables a financial institution to be more flexible with their growth strategy. It's become increasingly difficult to justify a fully operational location in all markets, especially areas of dense population where real estate is at a premium. Shrinking your footprint not only reduces your construction cost, but also creates flexibility of where you'll build. This makes it easier for financial institutions to enter markets that formerly seemed out of reach. 

While micro branches aren't clearly defined by size, services, or strategy, they all share the same benefits. The benefits range from cost savings to speed-to-market. 

### Micro Branches are not short on benefits. Here are six compelling reasons why. 

 

#### 1.  Minimized Overhead

Within micro branches, technology is appointed for routine transactions, while a reduced staff is available for high-touch consumer interactions.

#### 2.  Lower Investment

The reduced size of the branch allows for a smaller real estate footprint. Similarly, the smaller branch size reduces the building cost and maintenance.

#### 3.  Speed to Market

Design and construction is shorter when building a smaller sized branch, enabling financial institutions to enter markets quicker. 

#### 4.  Real Estate Flexibility

When entering markets where real estate is at a premium, a smaller footprint allows for more site options allowing your institution to grow in areas previously unattainable.

#### 5.  Same Conveniences

Micro branches can offer the same quick-conveniences as your standard branches, including drive-thru lanes and ATMs or ITMs.

#### 6.  Small Branch, Big Brand

Our micro branches are designed for convenience and act as a branded extension of what makes your financial institution unique.

 

 

## <https://hubs.ly/Q01wVw4f0>Your Next Step

Is a micro branch in your financial insititutions future? Let us show you how a small footprint can meet the desired financial needs of your marketplace.  Download our infographic, "Benefits of a Micro Branch- Small Format, Big Impact", and keep this on hand to share with your team when considering your growth strategy.[![Micro Branch Blog Download Graphic  (1)](https://www.lamacchiagroup.com/hs-fs/hubfs/Micro%20Branch%20Blog%20Download%20Graphic%20%20(1).png?width=1800&height=600&name=Micro%20Branch%20Blog%20Download%20Graphic%20%20(1).png)](https://www.lamacchiagroup.com/microbranchinfographicform)

 

 

 

 

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