strategy+business is published by PwC Strategy& Inc.
 
or, sign in with:
strategy and business
Published: February 24, 2004

 
 

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. 

Authors


Paul Kocourek (kocourek_paul@bah.com) 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 (bhasin_aditya@bah.com) 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 (hyde_paul@bah.com) 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.
 
 
 
 
Follow Us 
Facebook Twitter LinkedIn Google Plus YouTube RSS strategy+business Digital and Mobile products App Store

 

Resources

  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.
 
Close
Sign up to receive s+b newsletters and get a FREE Strategy eBook

You will initially receive up to two newsletters/week. You can unsubscribe from any newsletter by using the link found in each newsletter.

Close