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Bank Branch Network Reorganization and Optimization proram

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.

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Bank Branch Network Reorganization and Optimization proram

  1. 1. Optimize Your BranchNetwork in 8 Weeks
  2. 2. -------- Retain & expandRetain & expandRetain & expandRetain & expand existingexistingexistingexisting customercustomercustomercustomerrelationshipsrelationshipsrelationshipsrelationships-------- GGGGrowrowrowrow customer base andcustomer base andcustomer base andcustomer base and traffic totraffic totraffic totraffic tobranchesbranchesbranchesbranches-------- 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 throughoptimal locationsoptimal locationsoptimal locationsoptimal locationsDeliverablesDeliverablesDeliverablesDeliverables
  3. 3. optimize visibility,optimize visibility,optimize visibility,optimize visibility, effectivenesseffectivenesseffectivenesseffectivenessdirect communicationsdirect communicationsdirect communicationsdirect communications andandandandcustomer engagementcustomer engagementcustomer engagementcustomer engagement at eachat eachat eachat eachbranchbranchbranchbranch…………MissionMissionMissionMission
  4. 4. Method:Method:Method:Method:providprovidprovidprovideeee as muchas muchas muchas much mission-criticalmission-criticalmission-criticalmission-criticalknowledge 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. 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 datainto 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 retaillocation 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 ofassignments 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 expertin 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 corporatestrategic 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 developmentplan analysis and valuation.plan analysis and valuation.plan analysis and valuation.plan analysis and valuation.
  6. 6. The ChallengeThe ChallengeThe ChallengeThe Challenge
  7. 7. ... customers use branches for fewer services... customers use branches for fewer services... customers use branches for fewer services... customers use branches for fewer services52%52%52%52% - bank on the web- bank on the web- bank on the web- bank on the web12%12%12%12% ---- useuseuseuse ATMATMATMATMssss without entering branchwithout entering branchwithout entering branchwithout entering branch3%3%3%3% ---- preferpreferpreferprefer phonephonephonephone bankingbankingbankingbanking
  8. 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 convenienceonvenienceonvenienceonvenienceremainsremainsremainsremains the primarythe primarythe primarythe primaryselection factor for financialselection factor for financialselection factor for financialselection factor for financialservices...services...services...services...
  9. 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 MostValued Target Market SegmentsValued Target Market SegmentsValued Target Market SegmentsValued Target Market Segments
  10. 10. DEFINE SUCCESSDEFINE SUCCESSDEFINE SUCCESSDEFINE SUCCESSProfileProfileProfileProfile thethethetheTop PerformersTop PerformersTop PerformersTop Performers((((AlphasAlphasAlphasAlphas))))
  11. 11. Identify AlphasIdentify AlphasIdentify AlphasIdentify AlphasBranch 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. 12. Find Success DriversFind Success DriversFind Success DriversFind Success DriversMap Local MarketMap Local MarketMap Local MarketMap Local MarketArea DemographicsArea DemographicsArea DemographicsArea DemographicsMember DemographicsMember DemographicsMember DemographicsMember DemographicsBusiness PopulationBusiness PopulationBusiness PopulationBusiness PopulationTarget SegmentsTarget SegmentsTarget SegmentsTarget SegmentsStudy ExternalitiesStudy ExternalitiesStudy ExternalitiesStudy ExternalitiesLocal ConditionsLocal ConditionsLocal ConditionsLocal ConditionsState of Building & PremisesState of Building & PremisesState of Building & PremisesState of Building & PremisesAdjacenciesAdjacenciesAdjacenciesAdjacenciesR.E. Market & TrendsR.E. Market & TrendsR.E. Market & TrendsR.E. Market & Trends
  13. 13. Market ResearchMarket ResearchMarket ResearchMarket ResearchOrganize 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 SegmentsMapMapMapMap DDDDemographicemographicemographicemographic SegmentsSegmentsSegmentsSegmentsMap CustomersMap CustomersMap CustomersMap CustomersDraw Tables & GraphsDraw Tables & GraphsDraw Tables & GraphsDraw Tables & GraphsDetermineDetermineDetermineDetermine MMMMarketarketarketarket PPPPotentialotentialotentialotential & Opportunities& Opportunities& Opportunities& OpportunitiesMap CMap CMap CMap Competitionompetitionompetitionompetition & M& M& M& Marketarketarketarket OOOOverlapsverlapsverlapsverlapsMap allMap allMap allMap all SMEsSMEsSMEsSMEs by SICby SICby SICby SIC CCCCodeodeodeode & Size& Size& Size& Size
  14. 14. Profile Entire Branch MarketplaceProfile Entire Branch MarketplaceProfile Entire Branch MarketplaceProfile Entire Branch Marketplace
  15. 15. Market ShareMarket ShareMarket ShareMarket Share
  16. 16. Top Growth OpportunitiesTop Growth OpportunitiesTop Growth OpportunitiesTop Growth Opportunities
  17. 17. Map Market SegmentsMap Market SegmentsMap Market SegmentsMap Market Segments
  18. 18. Map Businesses / SMEsMap Businesses / SMEsMap Businesses / SMEsMap Businesses / SMEs
  19. 19. EXTENDEXTENDEXTENDEXTEND SUCCESSSUCCESSSUCCESSSUCCESSBenchmarkBenchmarkBenchmarkBenchmark&&&&ModModModModuuuullllararararizeizeizeize
  20. 20. Extend the Alpha Model to AllExtend the Alpha Model to AllExtend the Alpha Model to AllExtend the Alpha Model to All
  21. 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. 22. Move, Improve or MergeMove, Improve or MergeMove, Improve or MergeMove, Improve or Merge1. Review Data2. Identify & Priorize Changes3. Plan / Create Process4. Include Capital Costs in Model5. Execute
  23. 23. ExpandExpandExpandExpandDiscover OpportunitiesDiscover OpportunitiesDiscover OpportunitiesDiscover Opportunities1. Pockets of target segment clusters2. Empty spaces3. Exceptions & Why4. Convenience preferences5. Collaborate with others
  24. 24. Expand - Empty SpacesExpand - Empty SpacesExpand - Empty SpacesExpand - Empty Spaces
  25. 25. OptionsOptionsOptionsOptions1.1.1.1. Review KnowledgeReview KnowledgeReview KnowledgeReview Knowledge2.2.2.2. Facilitated Group WorkshopFacilitated Group WorkshopFacilitated Group WorkshopFacilitated Group Workshop3.3.3.3. Conclusions on FormatConclusions on FormatConclusions on FormatConclusions on FormatPrioritiesPrioritiesPrioritiesPriorities4.4.4.4. Identify Hub/SpokeIdentify Hub/SpokeIdentify Hub/SpokeIdentify Hub/SpokePrototypesPrototypesPrototypesPrototypes5.5.5.5. ConsiderConsiderConsiderConsider "Jewel-Boxes""Jewel-Boxes""Jewel-Boxes""Jewel-Boxes"6.6.6.6. ApplyApplyApplyApply "Way-"Way-"Way-"Way-findingfindingfindingfinding““““ TechniquesTechniquesTechniquesTechniques
  26. 26. Design & Select PrototypesDesign & Select PrototypesDesign & Select PrototypesDesign & Select PrototypesReview and Select Alpha Prototypes for ModelReview and Select Alpha Prototypes for ModelReview and Select Alpha Prototypes for ModelReview and Select Alpha Prototypes for ModelHub, 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 andProfiled With Demographic SegmentsProfiled With Demographic SegmentsProfiled With Demographic SegmentsProfiled With Demographic Segments
  27. 27. TIME LINETIME LINETIME LINETIME LINE
  28. 28. CONTACTCONTACTCONTACTCONTACTBrian L. FrenchBrian L. FrenchBrian L. FrenchBrian L. FrenchPrincipal & PartnerPrincipal & PartnerPrincipal & PartnerPrincipal & PartnerRealciprocity Advisors Inc.Realciprocity Advisors Inc.Realciprocity Advisors Inc.Realciprocity Advisors Inc.21 St. Clair Avenue East,21 St. Clair Avenue East,21 St. Clair Avenue East,21 St. Clair Avenue East,Suite 1201Suite 1201Suite 1201Suite 1201Toronto, Ontario M4T 1L9Toronto, Ontario M4T 1L9Toronto, Ontario M4T 1L9Toronto, Ontario M4T 1L9416.803.5301416.803.5301416.803.5301416.803.5301brianfrench@realciprocity.combrianfrench@realciprocity.combrianfrench@realciprocity.combrianfrench@realciprocity.com

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