ARH Credit Union Puts Retail Twist on Traditional Banking Approach; In-Store Branch Allows Credit Union to Better Meet Members' Needs with IBT's Assistance.

Business Editors

ATLANTA--(BUSINESS WIRE)--Jan. 12, 2004

Appalachian Regional Healthcare (ARH) Credit Union, based in Middlesboro, Ky., is taking a unique approach to banking by incorporating retail philosophies with traditional procedures. With the assistance of IBT, the nation's largest specialty retail branch and performance consulting company, ARH successfully opened an in-store branch in Wal-Mart to further meet the needs of its growing member base.

In addition to extended hours, a more convenient location and the full functionality of a brick-and-mortar branch, ARH's new in-store branch will enable members to conduct transactions 24 hours a day using a self-service kiosk. The in-store branch will also help ARH increase its competitive advantage by offering financial products and services to current members and prospects while they conduct their daily shopping activities.

"Our goal with this in-store branch and the self-service kiosk is to continue growing and add increased value to our members," said Ray Kaesbauer, president of ARH Credit Union. "Grocery stores are moving in this direction with self check-out; airlines have begun to do this with self check-in; and now financial institutions are allowing people to perform their own transactions. We want the kiosk to be the order taker so that our employees can concentrate on building relationships with both current and potential members."

IBT consultants conducted a training session with each ARH employee concentrating on in-aisle promotions, cross-selling of products, recruiting new employees and marketing strategies. One specific tool ARH employees implemented was IBT's prospecting process, which teaches ARH employees to keep a record of every encounter with a member or prospect. By taking note of members' or potential members' wants and needs, the credit union is able to improve the services and products it has available.

"Keeping in contact with members is now our biggest objective," Kaesbauer said. "IBT stressed the importance of building and maintaining a relationship with our members. A few years ago word of mouth was our best marketing tool, but that world has changed drastically. The credit union has had to refine its approach to banking to incorporate key retail components. Our goal is to continue to offer our members the best possible service."

ARH's recruiting emphasis is now focused on individuals with a retail background and sales experience, rather than traditional banking experience. During IBT's training, consultants stressed the importance of getting out from behind the counter and into the store aisles to sell the credit union products and services. "It takes a certain personality to feel comfortable walking up to potential customers and begin selling the credit union product," Kaesbauer added. "IBT has helped us set up our improved foundation and push it forward. It is a proven company that has direct retail sensibility."

John Nicola, IBT's senior vice president of sales, said, "ARH is a forward-thinking credit union that realizes the importance of strengthening relationships with current members, while reaching new members. Traditional banking methods alone are not enough in today's competitive marketplace. IBT's training is designed to improve and enhance credit unions' ability to meet members' needs."

About IBT

Based in Atlanta, Ga., IBT is a specialty retail branch design/build and performance consulting company that offers construction, sales training and performance-boosting consulting services to financial institutions. Aiding organizations to expand their presence through the placement of branch facilities in supermarkets, storefronts, freestanding interior buildouts and branch-at-work locations, IBT has worked with 500 financial institutions and 175 retailers in Latin America, Canada and the United States - representing more than 2,200 branches.

Established in 1985, IBT is the largest in-store branching consulting company and is a recognized industry leader.

For additional information about IBT, contact Kim Chimene at 520.299.6321 MST or e-mail [e-mail]. Visit the company's Web site at www.ibtsource.com.