-By Jane Olszeski Tortola

Consumers living increasingly hectic lifestyles continue to view convenience as a major attraction when choosing where to shop. And with gasoline priced at all-time highs, one-stop shopping is probably more in demand than ever before.

Thus, for supermarkets that continue to provide added services such as pharmacies, health clinics, lawn and garden departments, child care centers -- and especially in-store banking -- sizeable opportunities exist to attract profitable customers to their stores.

There's no doubt that banks and financial institutions today are facing unprecedented challenges, ranging from the mortgage meltdown, to decreases in commercial lending, to competition from Web-based lenders and others. All of this is forcing banks to operate more efficiently, and they continue to discover efficiencies in well-run grocery stores, according to Scott Johnson, s.v.p. of retail for Cornelia, Ga.-based Financial Supermarkets, Inc. (FSI).

Founded in 1984 by the late J. Alton Wingate, known by many as the father of supermarket banking, FSI is a consulting company that assists grocers in building relationships with financial institutions interested in placing branches within their supermarkets. An associate member and strategic partner of the Food Marketing Institute, FSI is also an active member of several state grocers' associations, as well as trade groups representing the bank and credit union industries.

"The process begins when a retailer requests that FSI market their store(s), which FSI does at no charge," explains Johnson, whose food industry career before FSI included working with FMI and Kroger. "We then conduct unique research to identify potential partners, and contact all qualified banks and credit unions."

He adds: "Once a financial institution with interest is identified, FSI introduces the retailer, and works with both parties to help them reach acceptable agreements for placing a branch in the store, followed by FSI designing, building, and installing all fixtures and equipment."

Working with numerous independents across the nation and having installed bank branches in 38 states, FSI has learned much about what makes the partnership work, and what impedes success. The greatest challenge is staffing. FSI provides the unique training needed for the bank employees and the branch to succeed in a retail environment.

"In-store bank associates must realize the necessity to operate as if they are a retailer, not a traditional bank," notes Johnson. "This requires a different skill set. We teach bankers that while they may operate only a 400- to 500-square-foot branch, what they really have is a 40,000-plus square-foot lobby, with customers flowing through it constantly. The opportunity to reach out to their competitors' customers is enormous."

Providing specialized employee training for as long as the bank branch operates in a store, FSI stresses the value of building relationships with the thousands of customers who frequent the supermarket each week, and, just as importantly, relationships with the store manager and his or her associates.

"We’re focused more on the 'make a friend, make a customer' approach," confirms Johnson. "We avoid the hard sell of financial products, and seek to be a helpful, integral department of the store."

With his company’s business growing at a record-setting pace, Johnson reports that a recent trend in supermarket banking involves credit unions with community charters opening in-store branches at a faster pace than ever before.

"Just like every industry, financial institutions must carefully consider where to place their resources to maximize their market reach," he notes. "Today there are fewer 'big' deals where a large bank commits to placing a branch in every store a retailer opens. More so, the banks are targeting specific locations that meet particular marketing needs. This has really opened the door for the credit unions."

At the end of the day, how does one measure the overall success of the in-store bank?

"It all depends on the goals and expectations for a particular branch," says Johnson. "It's all about what's needed and expected from the particular in-store bank, and, more importantly, what's best for the customers of the supermarket."