Consider a Potential Revenue Source with EV Charging Stations

Electric vehicles might seem like a modern concept, but they were actually around as early as the 19th century in several countries. In the US, Iowa chemist William Morrison introduced an electrified wagon around 1890, with a top speed of 14 miles per hour. The idea took off, and by 1900, one-third of all vehicles were electric. Yet, once Henry Ford began mass-producing his Model T in 1908 for just $650, compared to the $1,750 price ticket for an electric roadster, gasoline-powered vehicles became the norm. It wasn’t until the soaring oil prices and gasoline shortages in the early 1970s that interest in developing more sustainable electric vehicles took hold. Now, it’s all about building out the required infrastructure to support them.Electric vehicles are becoming more popular, particularly as more states adopt mandates to phase out the sale of new gas-powered cars. But all across the country, sales of electric vehicles are up, as environmentally conscious consumers, especially Gens Y and Z, are opting for them. As the country continues to develop infrastructure for electric vehicles, you might consider offering EV fast-charging stations in your parking lot — benefitting not only your customers but also your community financial institution (CFI). These consumers could make profitable CFI customers, as their purchases of newer vehicles indicate that they likely have adequate credit and could qualify for loans or bring in new deposits.Charging Stations Are a Win-Win for Unity BankUnity Bank, a $2.6B-asset CFI, offers EV fast-charging stations at its Clinton, New Jersey, headquarters. Customers and employees get special discounts, and everyone can enjoy complimentary beverages at Unity Café while their vehicles are charging. The CFI partnered with Encore Energy Group to offer four Lynkwell fast-charging stations, with costs offset significantly by incentives and rebates. The stations can be accessed by using the ViaLink app.“This integration of renewable energy sources is a testament to our innovative approach,” says James Hughes, president and CEO. “This is an investment not only for Unity Bank as a company but also for our employees, customers, and community members.”Potential Benefits of Offering EV Charging StationsThere are a number of reasons why your CFI may also want to follow suit. Adding EV fast-charging stations can:

Recent studies support these benefits. Wherever an EV charging station is placed in a community, spending at nearby businesses can increase as much as 37%, according to MIT researchers. The spending increases were particularly pronounced for businesses within 100 yards of charging stations.Indeed, EV fast-charging stations are becoming profitable for businesses that offer them, particularly as the average utilization of non-Tesla fast-charging stations in the US is up 32%, growing from an average of 12.9% in July 2023 to 17.1% in June 2024, according to Stable Auto Corp.Options for EV Charging StationsIf you are interested in offering EV charging stations at your branches, there are two models to consider, depending on your level of risk tolerance:

If you choose to offer this perk, consider advertising locally and in branches. You can also add your CFI to mobile apps that show area EV charging stations.While offerings like coffee shops and yoga classes inside banks were considered unusual when they first appeared, they have been well received by customers — and EV fast-charging stations may offer even more benefits to CFIs and their customers. Rebates and incentives can lessen the investment costs for technology that benefits the institution, its customers, and the environment.