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(originally published by Booz & Company)


A Better Way to Make Branch Banking Pay

To implement the federation business model, action is required in four areas:

  1. People: Hiring, training, and certification of front-line employees; significantly improving branch management; making major modifications to incentives.
  2. Internal Benchmarking: Understanding branch performance; aligning to micromarkets; increasing readiness for change.
  3. Geographic Specialization: Determining local resource needs and establishing a sales focus based on demographics, purchasing behavior, and the local growth trajectory.
  4. Structure: Establishing mechanisms to coordinate local versus central decision rights; refining roles and responsibilities within the branch network. 

The days of the branch bank as we’ve known it are over. But something better is emerging. In creating a multiproduct, multichannel federation, retail banks have an opportunity to provide greater value to their customers and to make branch banking a profitable, winning strategy. 


Paul Kocourek ([email protected]) is a senior vice president with Booz Allen Hamilton in New York. He focuses on strategic transformation of companies facing changes in the competitive landscape or the regulatory environment.
Aditya Bhasin ([email protected]) is a principal with Booz Allen Hamilton based in New York. He focuses on the retail financial-services sector, most notably in the retail banking, brokerage, and mortage industries.
Paul Hyde ([email protected]) is a vice president with Booz Allen Hamilton based in the firm’s New York office. He has worked extensively in the financial-services and health-care sectors.
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  1. “How the Auto Industry Should Embrace CRM,” by Steven Wheeler, s+b enews, 5/01/02, Click here.
  2. “Scrambled Egg: The Making and Breaking of an Online Bank,” by Victoria Griffith, s+b, Second Quarter 2001. Click here.
  3. “The Internet’s Impact on Retail Banking,” by Bill Burnham, s+b, Third Quarter 1996. Click here.
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