tag:blogger.com,1999:blog-8930153101988441660.post2126232640219190871..comments2023-10-20T11:33:42.846-04:00Comments on Bank Marketing Strategy: Banks Transforming Branch Networks to Improve EfficienciesAnonymoushttp://www.blogger.com/profile/05424097007271218756noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8930153101988441660.post-70530256214986174272012-10-08T18:05:59.503-04:002012-10-08T18:05:59.503-04:00@jim, thank you for a useful analysis and collecti...@jim, thank you for a useful analysis and collection of links. As an early adopter of online banking (1998) and payments (1995), I was scratching my head while observing the branch building boom during the 90s; I never looked into it, but several people referenced rationales like: competing for offline boomer business, real estate investments, brand building.<br /><br />However, I think banks may be moving too fast by closing branches because I detect a hidden opportunity to transform the branch concept and how it relates to various client types. For example, laptop- and smartphone-toting mobile workers are a very attractive demographic that is underserved around the world. There's an opportunity to repurpose part of select branches' space to create coworking spaces for clients--and use a digital social network to add leverage. Imagine coworking spaces positioned between airport lounges and Starbucks. Here's a detailed picture: http://tinyurl.com/sbo-cow in case helpful.csrollysonhttps://www.blogger.com/profile/18141324198072592747noreply@blogger.comtag:blogger.com,1999:blog-8930153101988441660.post-4840128328428789352012-09-24T06:27:12.542-04:002012-09-24T06:27:12.542-04:00Great article Jim.
The situation is mirrored here...Great article Jim.<br /><br />The situation is mirrored here in the UK but the backlash is already beginning - see the response here to HSBC's branch closures - http://www.guardian.co.uk/money/2012/sep/21/hsbc-branch-closures-keep-banking-local?newsfeed=true<br /><br />It will be interesting, as we face the end of "free banking" in the UK, how banks will manage this perceived loss of service as they close branches.<br /><br />Its telling that the newest and upcoming players on the block; Virgin Money, M&S Bank and Handelsbanken, are all using branch/f2f servicing as part of their value proposition. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8930153101988441660.post-25780157632894628072012-09-22T12:00:51.673-04:002012-09-22T12:00:51.673-04:00Jim, that was a big post. You tackled a lot. What ...Jim, that was a big post. You tackled a lot. What I liked the best was the reference section at the end. A bibliography in a blog post...brilliant. Please make sure you continue to do this. Anybody else who blogs/writes on the web, you must do this too (myself included). Many do not do this. I applaud all who do.<br /><br />As I was reading your article I was remembering my time working with NationsBank on its acquisitions of Boatman's Bankshares and Bank of America. With each merger we not only evaluated how we migrated customers and how they would be cross or up sold, we also evaluated the branch network to make sure they were efficient. Like any well run retail institution, not all "stores" are created equal. The firm I worked for always made recommendations of closures or relocations. These decisions should always be ongoing in any industry. I sometimes thinks bankers backed off this process. When I really think about it, I also think it is always going on but no one is noticing. Unlike most industries, banks can not just simply close a branch. They must apply and get approval. When the regular press reports on banks closing banks I wonder if they know that part of the process.<br /><br />The future of retail/business/commercial banking is not only exciting it is incredibly challenging.<br /><br />You closed with two distinct questions. The best distribution strategy is not simple as it is different in every market. The successful businesses will be the ones who can leverage their knowledge base to grow their businesses profitably. This is both true in the near and long term. Data driven companies that can execute tend to do well versus those who do not. The if you build it they will come strategy is finally dead (I hope).<br /><br />The other question about the non bank players entering the market. In the short term they will have zero impact. They have no scale. The top 4 banks own the market. Even long term, they will feel no material impact. At the other end of the spectrum, the bottom 4 banks will also feel no impact. These new financial service players are taking some business from banks and credit unions but it is spread out among the more than 10,000 financial institutions. Will these new players be successful? Yes. I think they will be incredibly successful. As time goes on there technological advantage will be mitigated as any FI will be able to have the same new tech they employ. <br /><br />David Gerbinohttps://www.blogger.com/profile/16582273033896954219noreply@blogger.com