Demographics change for a bank branch service area are changing dramatically in only a few years. Baby Boomers are moving and selling their homes to young families. Condos are being built for singles and new rapid transit is opening up neighborhoods for commuters.
Banks need to adapt...
Total branch network is more important, easier to accomplish (with good planning) and betters your top and bottom lines more now than ever.
2. -------- Retain & expandRetain & expandRetain & expandRetain & expand existingexistingexistingexisting customercustomercustomercustomer
relationshipsrelationshipsrelationshipsrelationships
-------- GGGGrowrowrowrow customer base andcustomer base andcustomer base andcustomer base and traffic totraffic totraffic totraffic to
branchesbranchesbranchesbranches
-------- Engage customers in more servicesEngage customers in more servicesEngage customers in more servicesEngage customers in more services
-------- Best cBest cBest cBest communicateommunicateommunicateommunicate youryouryouryour brand throughbrand throughbrand throughbrand through
optimal locationsoptimal locationsoptimal locationsoptimal locations
DeliverablesDeliverablesDeliverablesDeliverables
3. optimize visibility,optimize visibility,optimize visibility,optimize visibility, effectivenesseffectivenesseffectivenesseffectiveness
direct communicationsdirect communicationsdirect communicationsdirect communications andandandand
customer engagementcustomer engagementcustomer engagementcustomer engagement at eachat eachat eachat each
branchbranchbranchbranch…………
MissionMissionMissionMission
4. Method:Method:Method:Method:
providprovidprovidprovideeee as muchas muchas muchas much mission-criticalmission-criticalmission-criticalmission-critical
knowledge as is available...knowledge as is available...knowledge as is available...knowledge as is available...
in as intuitive forms as possiblein as intuitive forms as possiblein as intuitive forms as possiblein as intuitive forms as possible
5. George Anderson:George Anderson:George Anderson:George Anderson: Expert Geo-Demographer - transforms dataExpert Geo-Demographer - transforms dataExpert Geo-Demographer - transforms dataExpert Geo-Demographer - transforms data
into knowledge & intelligence. 25 years in corporate retailinto knowledge & intelligence. 25 years in corporate retailinto knowledge & intelligence. 25 years in corporate retailinto knowledge & intelligence. 25 years in corporate retail
location strategy. Emphasis on retail banking.location strategy. Emphasis on retail banking.location strategy. Emphasis on retail banking.location strategy. Emphasis on retail banking.
Brian L. French:Brian L. French:Brian L. French:Brian L. French: Corporate Site Selection Specialist. Hundreds ofCorporate Site Selection Specialist. Hundreds ofCorporate Site Selection Specialist. Hundreds ofCorporate Site Selection Specialist. Hundreds of
assignments in dozens of countries. Process approach and expertassignments in dozens of countries. Process approach and expertassignments in dozens of countries. Process approach and expertassignments in dozens of countries. Process approach and expert
in business modelling. Facilitator of hundreds of corporatein business modelling. Facilitator of hundreds of corporatein business modelling. Facilitator of hundreds of corporatein business modelling. Facilitator of hundreds of corporate
strategic workshops.strategic workshops.strategic workshops.strategic workshops.
Howard Meier:Howard Meier:Howard Meier:Howard Meier: Commercial Real Estate guru. City developmentCommercial Real Estate guru. City developmentCommercial Real Estate guru. City developmentCommercial Real Estate guru. City development
plan analysis and valuation.plan analysis and valuation.plan analysis and valuation.plan analysis and valuation.
7. ... customers use branches for fewer services... customers use branches for fewer services... customers use branches for fewer services... customers use branches for fewer services
52%52%52%52% - bank on the web- bank on the web- bank on the web- bank on the web
12%12%12%12% ---- useuseuseuse ATMATMATMATMssss without entering branchwithout entering branchwithout entering branchwithout entering branch
3%3%3%3% ---- preferpreferpreferprefer phonephonephonephone bankingbankingbankingbanking
8. But...But...But...But...
Branches are more important than ever...Branches are more important than ever...Branches are more important than ever...Branches are more important than ever...
location clocation clocation clocation convenienceonvenienceonvenienceonvenience
remainsremainsremainsremains the primarythe primarythe primarythe primary
selection factor for financialselection factor for financialselection factor for financialselection factor for financial
services...services...services...services...
9. Improve, Expand and Extend:Improve, Expand and Extend:Improve, Expand and Extend:Improve, Expand and Extend:
. . . Recruit and Engage the Most. . . Recruit and Engage the Most. . . Recruit and Engage the Most. . . Recruit and Engage the Most
Valued Target Market SegmentsValued Target Market SegmentsValued Target Market SegmentsValued Target Market Segments
11. Identify AlphasIdentify AlphasIdentify AlphasIdentify Alphas
Branch Performance DataBranch Performance DataBranch Performance DataBranch Performance Data
- Revenues / Costs- Revenues / Costs- Revenues / Costs- Revenues / Costs
- Member Transactions- Member Transactions- Member Transactions- Member Transactions
- Blind Staff Reviews- Blind Staff Reviews- Blind Staff Reviews- Blind Staff Reviews
- Member Satisfaction- Member Satisfaction- Member Satisfaction- Member Satisfaction
- Others?- Others?- Others?- Others?
"Blind" Ranking of Branches"Blind" Ranking of Branches"Blind" Ranking of Branches"Blind" Ranking of Branches
12. Find Success DriversFind Success DriversFind Success DriversFind Success Drivers
Map Local MarketMap Local MarketMap Local MarketMap Local Market
Area DemographicsArea DemographicsArea DemographicsArea Demographics
Member DemographicsMember DemographicsMember DemographicsMember Demographics
Business PopulationBusiness PopulationBusiness PopulationBusiness Population
Target SegmentsTarget SegmentsTarget SegmentsTarget Segments
Study ExternalitiesStudy ExternalitiesStudy ExternalitiesStudy Externalities
Local ConditionsLocal ConditionsLocal ConditionsLocal Conditions
State of Building & PremisesState of Building & PremisesState of Building & PremisesState of Building & Premises
AdjacenciesAdjacenciesAdjacenciesAdjacencies
R.E. Market & TrendsR.E. Market & TrendsR.E. Market & TrendsR.E. Market & Trends
13. Market ResearchMarket ResearchMarket ResearchMarket Research
Organize Customers in Segments (from 6 digit PCs)Organize Customers in Segments (from 6 digit PCs)Organize Customers in Segments (from 6 digit PCs)Organize Customers in Segments (from 6 digit PCs)
Organize Entire Market in SegmentsOrganize Entire Market in SegmentsOrganize Entire Market in SegmentsOrganize Entire Market in Segments
MapMapMapMap DDDDemographicemographicemographicemographic SegmentsSegmentsSegmentsSegments
Map CustomersMap CustomersMap CustomersMap Customers
Draw Tables & GraphsDraw Tables & GraphsDraw Tables & GraphsDraw Tables & Graphs
DetermineDetermineDetermineDetermine MMMMarketarketarketarket PPPPotentialotentialotentialotential & Opportunities& Opportunities& Opportunities& Opportunities
Map CMap CMap CMap Competitionompetitionompetitionompetition & M& M& M& Marketarketarketarket OOOOverlapsverlapsverlapsverlaps
Map allMap allMap allMap all SMEsSMEsSMEsSMEs by SICby SICby SICby SIC CCCCodeodeodeode & Size& Size& Size& Size
20. Extend the Alpha Model to AllExtend the Alpha Model to AllExtend the Alpha Model to AllExtend the Alpha Model to All
21. In/Ex-ternalitiesIn/Ex-ternalitiesIn/Ex-ternalitiesIn/Ex-ternalities
• Local ConditionsLocal ConditionsLocal ConditionsLocal Conditions
• Building ConditionBuilding ConditionBuilding ConditionBuilding Condition
• Floorplans and InteriorsFloorplans and InteriorsFloorplans and InteriorsFloorplans and Interiors
• AdjacenciesAdjacenciesAdjacenciesAdjacencies
• Real Estate Market ConditionsReal Estate Market ConditionsReal Estate Market ConditionsReal Estate Market Conditions
• Demographic TrendsDemographic TrendsDemographic TrendsDemographic Trends
• Capital Investment & OverheadsCapital Investment & OverheadsCapital Investment & OverheadsCapital Investment & Overheads
22. Move, Improve or MergeMove, Improve or MergeMove, Improve or MergeMove, Improve or Merge
1. Review Data
2. Identify & Priorize Changes
3. Plan / Create Process
4. Include Capital Costs in Model
5. Execute
25. OptionsOptionsOptionsOptions
1.1.1.1. Review KnowledgeReview KnowledgeReview KnowledgeReview Knowledge
2.2.2.2. Facilitated Group WorkshopFacilitated Group WorkshopFacilitated Group WorkshopFacilitated Group Workshop
3.3.3.3. Conclusions on FormatConclusions on FormatConclusions on FormatConclusions on Format
PrioritiesPrioritiesPrioritiesPriorities
4.4.4.4. Identify Hub/SpokeIdentify Hub/SpokeIdentify Hub/SpokeIdentify Hub/Spoke
PrototypesPrototypesPrototypesPrototypes
5.5.5.5. ConsiderConsiderConsiderConsider "Jewel-Boxes""Jewel-Boxes""Jewel-Boxes""Jewel-Boxes"
6.6.6.6. ApplyApplyApplyApply "Way-"Way-"Way-"Way-
findingfindingfindingfinding““““ TechniquesTechniquesTechniquesTechniques
26. Design & Select PrototypesDesign & Select PrototypesDesign & Select PrototypesDesign & Select Prototypes
Review and Select Alpha Prototypes for ModelReview and Select Alpha Prototypes for ModelReview and Select Alpha Prototypes for ModelReview and Select Alpha Prototypes for Model
Hub, Spoke/ Jewel Box Based on Data andHub, Spoke/ Jewel Box Based on Data andHub, Spoke/ Jewel Box Based on Data andHub, Spoke/ Jewel Box Based on Data and
Profiled With Demographic SegmentsProfiled With Demographic SegmentsProfiled With Demographic SegmentsProfiled With Demographic Segments