Pioneer breaking with tradition at its new branch

PHOTOGRAPHER: Patrick Dodson

Assistant Manager Caitlyn Osterhout works at a "pod", a computer station where bank teller operations happen, inside Pioneer Bank on Route 146 in Clifton Park on Tuesday, February 17, 2015.

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Pioneer Bank is breaking out of the traditional bank branch model and shifting to a new strategy focused on advanced technology and additional options, including retail sales.

The Troy-based bank company is constructing a new branch on State Street in downtown Schenectady that will open its doors in May. It won’t be your traditional bank, but a one-stop shop for customers, with ITMs and a store with business supplies.

What’s an ITM? It’s the new ATM. Interactive Teller Machines allow customers to complete transactions without seeing a teller, but give customers the option to videoconference with a teller if they need assistance. The Schenectady branch, Pioneer’s 18th in the Capital Region, will be the first to house ITMs.

“We’re excited about this branch,” said Thomas Amell, president and CEO of Pioneer Bank. “What we’re proposing, and going to implement, is a retail destination where customers can take care of more than one thing. Right now you go into a traditional bank branch and talk to a teller. But we want a place to take care of multiple tasks.”

The bank is an authorized agent for the U.S. Postal Service, so customers can ship packages nationwide from the branch. Like Pioneer’s branches in Albany and Clifton Park, the Schenectady branch will have a “Shop at Pioneer,” which will sell business supplies like copy paper, envelopes and shipping materials.

All of the proceeds from the shop’s sales will be donated to charity, Amell said. In Albany and Clifton Park, the branch managers pick a charity every month to donate the money to. The branch will also offer coffee and treats, plus free WiFi.

“Unlike Albany and Clifton Park, the Schenectady branch will have the merchandise right up front,” he said. “The facade will be very well-lit and people can window shop.”

The branch will occupy the first floor of the five-story Witbeck Building at 426 State St., next to Bow Tie Cinemas and Aperitivo Bistro. Pioneer Bank will lease about 2,000 square feet from Mazzone Hospitality owner Angelo Mazzone and local real estate attorney Paul Sciocchetti.

Pioneer Bank’s only branch in Schenectady County now is in Rotterdam. Amell said he wanted to add a second location in the county to make banking more convenient for people who live and work closer to downtown.

“We’re just thrilled with what is going on in downtown Schenectady, so when the opportunity came up we jumped at the chance,” he said. “Our long-term plan is to renovate all of our existing branches to look more like the new ones we’re putting up and to incorporate all of the services.”

Construction is already underway on the new branch, which will have about four full-time employees when it’s fully operational. The branch will be designed around a large conference room and instead of traditional teller lines there will be teller pods — freestanding stations that eliminate the barrier between teller and customer.

Amell said he plans to encourage community organizations to use the conference room. It will be partitioned off from the rest of the branch so it can be used after hours as meeting space.

While larger banks are closing branches and promoting online banking, Amell said Pioneer Bank’s competitive advantage is in doing the opposite, even though it’s not the least expensive option.

“What has happened in the industry is that every other bank is really looking for opportunities to use technology, which ultimately forces customers out of their branches,” he said. “They are doing that to reduce costs. That is not our strategy. We want more and more for our customers to do in our branches. We want them to feel comfortable in our branch.”

Reach Gazette reporter Haley Viccaro at 395-3114, [email protected] or @HRViccaro on Twitter.