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Shopping In The Supermarket by Michael Licamele |
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Bread, milk and mortgages? When shoppers are writing up their grocery list, they can add mortgage banking services to the agenda. A national trend which has emerged in the New England area places the convenience of banking one step closer; within the aisles of your local supermarket. Full service seven days a week results in convenience for the working population; the major benefit promoted by People's Bank. Five Hartford area branches located within the Edwards Super Food Stores chain have opened in the past year. Most of the store branches are small, measuring between 400 and 600 square feet with an open front counter. Current locations include Bishop's Corner in West Hartford, School Square in East Hartford, Bloomfield, Southington and Vernon with new branches opening during the fourth quarter of 1994 in Orange and Shelton. Ongoing expansion is also planned for 1995. The branches are staffed seven days a week by bank employees and perform anything a traditional bank branch services, including taking mortgage loan applications. Unlike other banks, People's supermarket branches offer expanded hours, staying until 7 p.m. on weeknights and as late as 4 p.m. on both Saturdays and Sundays, mirroring a national trend. The average shopper makes 2.3 trips a week into the supermarket; Edwards estimates that between 20 to 30,000 customers pass through their doors a week, creating a niche marketing opportunity for People's. According to International Banking Technology of Atlanta, a firm which specializes in matching banks to supermarkets, as of June 1994 nearly 2,200 bank branches are operating inside supermarkets with 250 new locations newly opened in 1994. People's employees are identified by their bright white aprons adorned with their name tag and a bright blue illustration of a shopping cart holding dollar bills. The tag lines on promotional materials reads "Out of bread? Pick up a loaf or a loan at one of our new supermarket branches," and "Greenbacks by the greenbeans..." The employees are not just tellers, but Sales and Service Associates who offer the consumer a complete range of banking products and services. Customers are attracted by the innovative concept that they can save steps by doing their shopping and banking under the same roof. Ms. Janet Donn Comeau, Senior Sales and Service Associate at the West Hartford branch states, "We have working professionals who will come up to one of our associates in the aisle and tell them that they need a $250,000 mortgage with no qualms. It is interesting to see how our customers have warmed up to the idea. For customers who require more privacy, we offer a consultation room in our office." In June, when People's Bank offered a special mortgage promotion on Home Equity Loans, the West Hartford branch wrote twelve applications during the month. The results were promising; ten loans out of the twelve closed with an average loan amount between $80,000 and $100,000. Closings take place right at the supermarket branch, in fact the trend is toward these more convenient locations and away from the brick and mortar bank branches which are only open during traditional hours. An analysis has shown the volume of mortgage business at the supermarket branches is keeping an even pace with the traditional branches in terms of dollar volume. Ms. Donn Comeau cited an example, "One customer just sat down at our counter and just did not think twice about their kids screaming, people squeezing melons in the background and carts whizzing by. It is surprising how open people can be about their finances in a more casual setting, as compared to the traditional bank lobby. Our customers do not seem to mind the crazy and hectic environment and get right down to the business of completing the application." Chandler Howard, who heads People's supermarket banking program, said that "Initially, the customers were more receptive to traditional savings, checking and CD products. Getting the customer to feel at ease talking about mortgages took some time. Each of our employees takes an extensive nine month training course to become fully certified to write mortgages." Mr. Howard continued, "Many customers did not believe us when we told them we could originate a loan on a Saturday or Sunday while they were doing their typical weekend errands. Now, they have seized the idea. From a product delivery perspective, we realize that convenience is key to the customer." People's Bank is planning to continue their retail expansion by opening branches in other supermarkets. "As we move forward, we are looking at other retail locations in the state," Howard said, "In fact, banks from all over the world have made inquiries about our program." |