---
title: "Take Advantage of Location Strategy: Using Real Estate to Drive Growth"
description: The location of a branch or an ATM is not simply about its convenience anymore— it is also about the overall expansion strategy.
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---

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# Take Advantage of Location Strategy: Using Real Estate to Drive Growth

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

In the competitive banking industry, where customer retention can be a challenge, [real estate](https://www.lamacchiagroup.com/services/plan) is rapidly becoming a critical differentiator. Credit unions and banks seem to be waking up to the fact that location strategy is extremely useful for both serving existing clients and acquiring new ones. The location of a branch or an ATM is not simply about its convenience anymore— it is also about having an overall expansion strategy.

 

### Establishing a Presence Near Consumers

A major part of an effective location strategy is looking at the distance from primary consumers. By locating themselves next to residential, educational, and even business centers, financial institutions are making their services more available. Such proximity improves customer satisfaction along with service accessibility, which can increase satisfaction and loyalty. Many times credit unions especially find this approach useful as they serve specific niche communities. By strategically locating branches, financial institutions are better able to [build](https://www.lamacchiagroup.com/services/build) stronger bonds with consumers.

[![exterior one edited](https://www.lamacchiagroup.com/hs-fs/hubfs/exterior%20one%20edited.jpg?width=2048&height=1365&name=exterior%20one%20edited.jpg)](https://www.lamacchiagroup.com/portfolio/cattaraugus-county-bank)

*Cattaraugus County Bank | Customer accessibility played a large part in choosing this branch's location.*

 

### **Collaborating with Local Businesses and Educational Organizations**

Local partnerships can be impactful in a financial institution's strategy. They are able to establish themselves in the community and enhance their [brand](https://www.lamacchiagroup.com/services/brand) by having a branch right next to, or even within, highly-known and well trusted local businesses. Their collaboration can go as far as co-marketing, which could involve a local business providing discounts to customers who use a specific financial institution's services, as well as giving business loans to support local upstart companies. These collaborations can enhance the image of a financial institution as they are positioning themselves as a community partner.

![Landre-TownBank-048](https://www.lamacchiagroup.com/hs-fs/hubfs/.Portfolio_Master/Wisconsin%20Projects/WI_Town-Bank/Marquette%20University/Resized%20for%20new%20website/Landre-TownBank-048.png?width=1015&height=677&name=Landre-TownBank-048.png)

*Town Bank | Located on Marquette University's campus in Milwaukee, Wisconsin.*

 

### **Finding High Traffic Areas**

Visibility is equally essential for financial institutions seeking to keep and grow their clientele. By strategically opening branches where foot traffic is always high (like near shopping malls, busy commercial areas, or close to transportation centers), financial institutions increase their chances of getting new clients. For instance, a branch located near busy stores can draw in consumers simply due to its proximity; the branch is able to grab nearby visitors’ attention by making use of its signage, promotions, and events for those who may have not considered using the branch's services earlier. [Digital signage](https://vivalociti.lamacchiagroup.com/solutions-experiential) tends to be a great attention grabber, even from further away!

[![atlanticexterior3-edited-resized](https://www.lamacchiagroup.com/hs-fs/hubfs/atlanticexterior3-edited-resized.jpg?width=1584&height=1037&name=atlanticexterior3-edited-resized.jpg)](https://www.lamacchiagroup.com/portfolio/atlantic-federal-credit-union)

*Atlantic Federal Credit Union | A floor to ceiling LED wall can be seen from one of the busiest intersections in Westbrook, Maine.*

 

### **Integrating Physical and Digital Services**

With the advancement of technology<https://www.lamacchiagroup.com/resources/4-key-indicators-its-time-for-a-new-operations-center-0?hs_preview=ekCuaase-188231311438>, there should be a growing integration of digital and in-person services offered. Many financial institutions have embraced the hybrid approach where clients can make use of the digital service via an in-branch kiosk or ITM, while also having the option to get help face-to-face. This shift acknowledges the diverse preferences of clients. In turn, those who like using online banking along with those who require more interaction for complicated tasks will all be satisfied.

[![WTB-SouthParkersburg_11](https://www.lamacchiagroup.com/hs-fs/hubfs/Williamstown%20Bank-%20South%20Parkersburg/WTB-SouthParkersburg_11.jpg?width=1399&height=943&name=WTB-SouthParkersburg_11.jpg)](https://www.lamacchiagroup.com/portfolio/williamstown-bank-south-parkersburg)

*Williamstown Bank | ITMs and face-to-face services are both available.*

 

When it comes to growth strategies, real estate is critically important for banks and credit unions. Financial institutions can increase their visibility as well as strengthen their market position by being close to target consumers, having branches in high-traffic areas, and partnering with local businesses. Additionally, integrating digital capabilities within physical branches ensures these locations are meeting diverse consumer needs. Effective strategic positioning will continue to create competitive advantages and build lasting community relationships for financial institutions.

 

La Macchia Group is here to help your financial institution with location strategy and real estate, [contact us](https://www.lamacchiagroup.com/contact-us) to learn more. 

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