Is The Bank Branch Dead

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    Is The Bank Branch Dead - Presentation Transcript

    1. Is the bank branch Dead?
    2. Key Trends
      • Branch-generated revenue growth is becoming more challenging.
      • Transactions processing and customer service are becoming increasingly independent of the branch channel.
      • Customer demographics are shifting, making Generation Y and ethnic groups vitally important.
      • Source: Evolving Models of Retail Banking Distribution, Deloitte, 2008
    3. The Branch Value: Customer Perspective
      • Customers continue to cite convenience as the number one reason for choosing a bank:
        • Retail Bank Selection % of respondents
        • Branch Close to Home 52%
        • Good Service 36
        • Convenient ATMs 35
        • Free Checking 34
        • Previous Relationship 32
        • Offers Direct Deposit 24
        • Branch Close to Work 22
        • Low Fees/Charges 19
        • Low or no ATM Fees 18
        • Convenient Hours 17
        • Source: PSI Survey of US customers
      • Does this mean having a lot of branches
      • Does this mean having a extensive ATM network
      • Does this mean having an extensive array of products
      Questions:
    4. Answers
      • The answer is a both a yes and no to the questions. Having an extensive ATM and branch network along with 10 page menu of products does not assure success alone
      • Banks should focus on:
        • Distribution excellence
          • This drives customer choice, loyalty, and ultimately, profitability
        • Forward thinking
          • The world is changing at a rapid pace and customer expectations the bank role is changing
        • Less transactions and more on retailing
          • Mastering retail concepts from such success as Starbucks, Target, and others will provide greater insight to marketing and selling bank services
    5. New Banking Paradigm
      • Customer
      • Anywhere Anytime Anyway customer convenience
        • Online banking
          • 24/7 service
        • 8 to 8 branch service
        • 365 days branch service
      • Instant comparison of products and services
      • Reduced Turn Around Time
      • Enriched interactivity through customized services
      Bank
    6. New Banking Paradigm
      • Bank
      • Redefine
        • Traditional concepts
        • Role of the branch
        • Business processes
      • Wider and more focused market reach
      • Reduced distribution costs
        • Cross Sell
      • Leverage customer database
        • Customer acquisition / retention
        • Credit screening and data mining
      Customer
    7. The Innovators
      • ING Savings
        • Retail banking
        • Very Limited branches
        • E-banking
        • Basic Product Menu
      • Commerce Bancorp
        • Commercial and Retail
        • Numerous branches
        • Traditional Banking
        • Multiple products sets
      • HSBC ( US banking )
        • Commercial and Retail
        • Limited branches
        • “ Self-Directed” banking
        • Limited Products
    8. ING Savings
      • ING branches:
        • Differentiate the brand
        • Are not called branches, they are called “ Cafes”
        • Creates social currency…banking is cool, very cool.
    9. Commerce Bancorp
      • Commerce branches:
        • Build the brand
        • Are the mission statement...”Building the Brand one brick at a time”
        • Unconventional
          • Opened seven days a week
          • Hours based on working class people
          • convenient banking
    10. HSBC USA
      • HSBC USA branches:
        • Provide Niche services for Cosmocrats
        • Provide Straight-Thru banking for ‘Self-Directed’ customers
    11. The theme among all three cases
      • Demand for non-traditional Service
      • Automation of Services (for customer needs, not for bank needs)
      • Emphasis on Customer rather than Product
    12. Branch as a Multi-Channel Platform
      • The branch represents:
      • A significant opportunity for changing the customer experience;
      • A significant opportunity for enhancing the brand;
      • A platform for offering superior non-deposit offices and e-banking services
    13. From Transactions to Interactions From this………… to this………
    14. And…Trust and Transparency Customers outside IndyMac Bank Stanford Bank

    + Paul JoegrinerPaul Joegriner, 6 months ago

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    A brief analysis and discussion of bank branches. more

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