A very Beneficial bank

By William Kenny
Times Staff Writer

If old age were a guarantee of success in business, Beneficial Savings Bank might never have a need to expand.
That’s because whereas some prominent banks in the Philadelphia market seem to change identities more often than a chameleon, Beneficial has been a trusted name throughout the region for more than 150 years.
But age and name recognition can get you only so far in the banking industry. And they won’t get you very far at all without service to back them up.
Improving customer service is a primary goal of Beneficial’s ongoing expansion initiative, which has largely focused on Northeast Philadelphia in recent months.
The bank now operates 10 branches in the area, including one that opened in January at 12377 Academy Road and two more that opened last month at Tyson and Brous avenues and at Rhawn Street and Dungan Road.
Beneficial’s president and CEO, George W. Nise — a Northeast native and Lincoln High graduate — hopes that the bank’s investment in new locations, along with the refurbishing of existing offices and the addition of drive-up facilities, will not only help it retain its current client base but also to add to it.
"What we’ve tried to do in the Northeast is, though we’ve had such a good presence there, (determine if) there were other locations where we needed to be," Nise said.
"I think we’ve addressed that for the most part."
Beneficial has for many years been truly a hometown bank for folks in the Northeast. Nise, 62, is a 35-year veteran of the organization, which has always been independent and privately owned.
Last year, it adopted a mutual holding company structure, though no shares of the MHC were sold publicly.
Of the 700 or so mutual banks left in the U.S., Beneficial ranks in the top 10 in assets, Nise said.
Nise’s immediate predecessor as president, Armond F. Gentile, is a Tacony native.
Also, the man who hired Nise in 1970, then-president John Gallagher, was also from Northeast Philly.
A mere two years ago, when Beneficial celebrated its 150th anniversary, the bank listed seven locations in the Northeast, compared to eight others throughout the rest of the city, seven in all of Delaware County and nine in Bucks and Montgomery counties combined.
There was one branch in Chester County and one in Mount Laurel, N.J.
By the conclusion of the current expansion program, the bank will have increased from 33 total branches to 41, including 10 in the Northeast.
With pre-existing locations from Lower Mayfair to Parkwood to Fox Chase, the bank wasn’t facing so much a geographic issue locally as a service issue. Specifically, Beneficial wanted to better accommodate the changing needs and expectations of consumers.
For example, Nise said, Beneficial for years has had successful branches at Frankford and Cottman avenues in Mayfair and at Bustleton and Robbins avenues in Oxford Circle, but neither has drive-up service.
So the bank opened the new Tyson and Brous branch for the locals who want to do their banking from the comfort of their own cars.
"That’s an example of two branches that have a very good customer base," Nise said, "but we had some concerns about their ability to attract new customers."
Ideally, Beneficial wants new branches to be about 3,000 square feet with drive-up live teller, remote teller and ATM capabilities.
Meanwhile, even some of the existing branches have seen major renovations as the bank tries to make walk-in customers feel more comfortable, too.
A lot of people still prefer to speak face-to-face with a teller or other bank employee rather than deal with a machine.
"With Internet banking coming on board and (automatic) bill pay, people don’t need to come into the bank, but some still like to," Nise said.
And while some banks in past years have discouraged walk-in business by attaching fees to teller transactions, Beneficial encourages it. Nise views walk-ins as a great opportunity for the bank to expand its relationship with the customer.
"It’s definitely an opportunity to display your wares, and I think someone who comes into the bank is a lot more willing to listen to what you have to offer," Nise said.
Though founded as a savings bank, Beneficial now offers a full array of lending, investment, wealth management and insurance services.
In fact, Nise describes "the penetration we’ve made into commercial lending" as one of the two things he’s most proud of from Beneficial. The other thing is the bank’s commitment to community service.
Beneficial as an organization and as represented by the individuals who make up the bank contributes to countless non-profits, educational institutions, hospitals and charities with financial support and in terms of hands-on volunteers.
Nise, for one, is active in the Greater Northeast Philadelphia Chamber of Commerce, the board of Holy Family University, the board of Holy Redeemer Hospital and the American Heart Association, to name a few.
"We try to look at the community and look where we can help, both from a financial standpoint and a human capital standpoint," Nise said. "It’s very difficult to put a dollar figure on the benefits. As much as anything, it benefits our people to know that they’re participating. They feel good, and an employee who feels good will treat customers well." ••
For information about Beneficial Savings Bank, visit www.beneficialsavings.com or call 215-864-6000.
Reporter William Kenny can be reached at 215-354-3031 or bkenny@phillynews.com