For any bank that builds a new branch or headquarters, the construction isn't just a physical undertaking. It's also a matter of public relations.
Building a structure on time and on budget, experts say, communicates to the public that a bank is competent, organized and confident in its future. On the other hand, construction problems or delays can badly damage a lender's image.
Huw Roberts is the CEO of PMWEB, a software company that helps banks and other businesses manage their construction projects. In his view, the practical benefits of a new building — expanding into a new market, creating a more modern work environment, etc. — are only half the story.
"It also has a value in what it signals to the world, to the market, to your customers, to your competitors," Roberts said. "These flagship buildings or redevelopments or large-scale projects can be a brand statement."
That statement can be either positive or negative. Get it right, and the bank looks capable of handling the finances of a complex, long-term project. Get it wrong, and the risks are just as great.
"For a bank, there's an expectation that they're on top of it," Roberts said. "If a bank does something that makes them lose money, then you don't trust that bank as much."
Monoliths in Manhattan
One recent example is from one of PMWEB's clients:
"They've hit a home run," Roberts said of the project, which was managed using PMWEB's software. "They absolutely did a great job and delivered a great building."
The completion of the structure sends multiple messages to the public, including about
But another signal is to its employees. Earlier this year,
"By creating world-class environments where our employees can thrive, we are strengthening our ability to serve our clients and communities — locally and globally — for generations to come," CEO Jamie Dimon said in a
In Roberts' view, the high-tech new office signals that the bank is "looking to the future" and equipping itself for it. But the construction process was not without risk: For one thing, the skyscraper's foundation had to be built directly on top of a subway station and other utility infrastructure, right in the middle of a highly busy neighborhood.
"They had to be very creative in terms of how the structure got down through them into the ground," Roberts said. "The risk was, with that much work, that many people working on it, that high visibility … getting it wrong would have gotten a lot of attention."
And there have been banks that got it wrong. In 1978, a structural engineer who worked on the
After briefly contemplating suicide, the engineer alerted
Less dramatically, other projects have struggled to even get to the construction phase. For more than a year, American Express has been stuck in negotiations to become the anchor tenant at 2 World Trade Center, an
Smaller banks, higher stakes
Community banks, meanwhile, face a different balance of risks and rewards when contemplating new construction. In some ways, they have more to lose if something goes wrong.
"If that branch renovation takes that branch out of service too long, you're losing customers, and you may have people decide to get their service somewhere else," Roberts said. "On a dollar value, it might be a smaller scale, but in terms of everybody associated with that project … it's, in a way, an even bigger impact."
At the same time, new construction can send an outsized signal about a small bank's brand.
Centier Bank, a Merrillville, Indiana-based lender with $9 billion of assets, recently broke ground on a new branch in Westfield. By building yet another office in Indiana — the bank has more than 60 — Centier says it's not only reaffirming its commitment to the state, but re-declaring its independence.
"We have a 'Not for Sale' pledge — never selling the bank," Centier's president, Chris Campbell, told American Banker. "We're continuing to show that and reinforce that through investment in all these communities."
But an even stronger message, Campbell said, is sent by what the bank does with such branches long after they're constructed.
"All the branches that we've built and put up — they're still there," Campbell said. "Our competition will leave communities … whereas our commitment rides the highs and the lows."
Centier says the Westfield office will open in the summer of 2026. Finishing this kind of construction project on time, Roberts said, can make a big impression on the public.
"By being able to deliver those small projects quickly, efficiently and within your budget … that enables you to be nimble as a business," Roberts said. "Time is money, and being able to do it quickly means you can react, you can get your plans in motion, and you can respond to change in your business."
