A Perfect Blend: How Financial Institutions Leverage Co-Branding to Attract More Customers

While the financial industry continues to see fewer in-lobby transactions and more mobile-based activities, one question remains at the forefront for bank leaders: how do we reach new customers?

Even with the decline in foot traffic, a financial institution's physical presence still plays a vital role in how people choose where, and how, they bank. So we asked ourselves: how can we help financial institutions bring more potential customers into their spaces?

Our answer: Co-Branding.

What is Co-Branding?

Co-branding is HTG’s innovative approach to bank design. By partnering with another local business, such as a coffee shop, community hub, or retail brand, we help create an environment that naturally draws more people through your doors.

It’s a proven way to expand your reach, connect with community members and build relationships that lead to long-term customers.

In Banking, Relationships Are Still Key

Technology has changed how people bank, but not why they bank. From ATMs in the 1960s, to drive-ups in the 1970s and 1980s, to online banking in the late 1990s, innovation has always shaped the industry. Yet one constant remains: relationships are the foundation of banking.

While digital tools are essential, they don’t replace the trust and connection built through face-to-face interactions. Your most profitable customers still traditionally value those in-person conversations.

Meet Your Future Customers

Who is your most profitable customer? Historically, it’s not the 18- to 24-year-olds, it’s the business owners and seniors who prefer to meet with their bankers in person.

Younger generations, however, often start their journey online. If they like your website, they’ll open an account in just a few clicks. But years down the road, when they’re ready to discuss larger financial goals, they’ll look for a trusted relationship.

That’s where co-branding makes an impact. By connecting with this audience today, through shared spaces and authentic experiences, you’re building the foundation for tomorrow’s loyal customers.

Co-Brand Your Bank to Increase Potential Customer Traffic

If your branch is experiencing a decline in lobby transactions, partnering with a local business could be the strategy to reenergize your foot traffic.

Co-branding generates additional cross-traffic within your branch and increases exposure to individuals who may not yet be your customers. When new visitors walk through your doors, it creates opportunities to build relationships and strengthen community ties.

Rethink Who You Partner With

You might wonder: what types of businesses work well for co-branding?

Traditionally, banks have shared space with investors, insurance agencies, accountants and attorneys. But today, we encourage financial institutions to think beyond the typical professional partnerships and consider retail collaborations, like coffee shops or local boutiques.

By co-branding with a retail business, you create consistent, repeat, non-customer foot traffic that introduces new audiences to your brand every day.

"At any given time throughout the day, I see 10 to 12 people sitting in the shared waiting space. Coffee customers are exposed to the bank employees and the bank customers are able to get a great cup of coffee. This union of HomeTown Bank and Mocha Monkey has more than exceeded our expectations and allowed us to hit our revenue goals."

- Mike Orth, Vice President and Branch Manager

A Co-Branding Success Story: Hometown Bank + Mocha Monkey

A great example of this concept in action is HomeTown Bank in Carver, Minnesota, which partnered with Mocha Monkey, a beloved local coffee shop.

Mike Orth, Chief Development Officer, worked with Mocha Monkey owner John Schmidt to develop joint marketing materials and the co-branded slogan, “Banking Brewed Locally.”

The results speak for themselves.

"At any given time throughout the day, I see 10 to 12 people sitting in the shared waiting space. Coffee customers are exposed to the bank employees and the bank customers are able to get a great cup of coffee. This union of HomeTown Bank and Mocha Monkey has more than exceeded our expectations and allowed us to hit our revenue goals."

- Mike Orth, Chief Development Officer

The success of this location has been so positive that Hometown Bank has implemented similar co-branding concepts in multiple branches, the Carver branch being the newest project! The team now has its eyes on further development and continuations of their wildly successful co-branding model.

Why Co-Branding Works

For Hometown Bank, the design concept was simple yet powerful: create a coffee shop with a bank wrapped around it.

The architecture seamlessly blends warmth and professionalism; it’s difficult to tell where the coffee shop ends and the bank begins.

From the exterior, visitors are greeted with small-town charm and modern sophistication. Gabled rooflines, stone accents and crisp white siding offer a timeless look, while clean lines and large windows give it a contemporary feel. Outdoor seating and thoughtful landscaping add to the community vibe, transforming a typical financial building into a destination.

Inside, the design combines state-of-the-art security with the inviting comfort of a coffee shop, creating a setting that encourages both business and connection. The shared space naturally facilitates interaction. Bank customers grab coffee, coffee customers become familiar with bank staff, and local business owners use the café as a meeting place.

Coffee shops also appeal to younger generations, offering a casual environment to study, work or gather with friends. Over time, as these patrons mature and when their financial needs expand, like needing to secure a mortgage or business loan, they already have a trusted connection with the bank.

From Transactions to Relationships

Before building a new branch or remodeling your existing facility, consider the purpose of your lobby. Co-branding can shift your environment from transaction-based to relationship-based, a critical distinction in today’s banking world.

If you’re remodeling, consider reducing your transaction area and investing in an inviting, shared space that attracts profitable customers and strengthens your brand presence.

And if your current facility has extra, unused space, you might be sitting on an opportunity to transform it into a co-branded partnership, one that invites more people into your bank and encourages them to stay awhile.

Whatever your next project needs are, consider contacting us to learn more about how we can take your business to the next level. Creating spaces that connect people, strengthen communities and grow your brand.