You are here: Home Page » Retail Banking » Retail Banker International » Reports » The Branch is Back: Global Case Studies in 21st Century Banking Success

The Branch is Back: Global Case Studies in 21st Century Banking Success

By: David J Cavell

Published: May 2008

The Branch is BackThe branch is well and truly back as the lead delivery channel and is once again the subject of major development spend. This report reviews the state of branch banking across the world and presents case studies of industry leading innovation.

The report assesses the critical success factors involved in:

- The brand and the branch.

- Branch design.

- The branch in the community.

- Network planning and management.

- Self-service strategy.

- Sales systems.

- Staff skills.

Branches can be made to work effectively for all sectors of the market  and somewhere in the world someone has already solved your problem!

Who should read this?

Heads of Financial Service Providers, Executive Directors, Consultants Partners and Directors of Retail Banking and Senior Management in Retail Banking, small business banking, branch operations, delivery channel strategy.  Cash in Transit companies Directors, Head of Sales Trends,


What are they looking for?

Peer group experience, industry trends, material for business cases, re-assurance, education of potential, for example: self service and strategy options. Education on the issues and alternative solutions, best practice and trends, self service developments, and things likely to impact their business models.

About the Author:

Formerly a member of the General Management team of the highly successful UK Cooperative Bank, David J Cavell FCIB has led and supported a range of strategy and implementation projects.
Long established as an examiner for the Chartered Institute of Bankers, he assisted the development and launch of a new bank card examination for Visa International.
He is currently a panel member for the UK Banking Code Standards Board and a member of the General Assembly of the University of Manchester. He is a member of the judging panel for major annual industry awards given by the UK Institute of Financial Services and The Asian Banker Journal of Singapore.

SECTION 1: OVERVIEW

This report reviews examples of the extensive work that is once again being undertaken by the world’s retail bankers to ensure that branches remain effec- tive and profitable components of the delivery channel mix.

The principal objectives of any delivery channel, and in particular the branch, are:

-     to project and represent the brand (or sub brand);

-     to protect and develop the existing customer base;

-     to acquire profitable new customers;

-     to provide service that is a critical requirement of its location.

This chapter discusses the issue of the brand and the branch, while the case studies and other chapters provide ample illustrations of the means by which all of these objectives are being pursued.

SECTION 2: BRANCH-LED RETAIL BANKING

This section looks at three different retail banking development scenarios, each of which is built round a branch-led delivery channel strategy.

ANZ Banking Group is a profitable major player operating in increasingly competitive markets. The Australian banks are once again taking a positive view of the role of the branch. And for ANZ the branch is playing a role of strategic significance in its mission to:

-     develop wallet share among its existing customers;

-     acquire new customers in both existing branches and through the opening of new outlets;

-     build customer satisfaction to the point of advocacy; and

-     reach out to the many and various communities within which it operates.

SECTION 3: BRANCH DESIGN STUDIES

This section of the report presents a range of studies, each of which examines some aspect of innovation in branch design. The chapters covering The Co- operative Bank and Wachovia reflect the experiences of banks which are market leaders in the use of environmentally-sensitive techniques.

The concept of the financial mall, a large flagship branch on a prominent site, has proved attractive to the banks of the Gulf region. In 2004, as part of a series of major bank-wide improvement initiatives, Bank of Bahrain and Kuwait conceived the  idea  of  developing a  series of  financial  malls throughout  the Kingdom. This chapter  provides practical insights about the design process, from the development of the first designs to the point of implementation.

SECTION 4: SALES AND SERVICE

Garanti Bank is the third-largest player in Turkey outside of government control, based on total assets. The bank’s own research confirms that its brand is both respected for its professionalism and innovation, and trusted. But the market within which the bank operates requires it to service customers from a very broad range of socio-economic backgrounds. The Turkish market is also very price-sensitive. The new generation of Garanti branches are smart and functional without being over-engineered. The bank deploys market-leading online functionality to facilitate the automation of many routine teller and customer transactions. And at the heart of its marketing strategy is a highly-sophisticated customer relationship management-driven  (CRM-driven) sales system. This case study provides a view of a bank that has  taken major initiatives, often industry-leading, in all the critical areas of retail branch strategy.

SECTION 5: THE BRANCH IN THE COMMUNITY

The banking case studies in this section of the report provide two world-class examples of how the branch can be deployed as both a service facility and a platform through which to reach and cultivate business within the local community. Indeed, the Bendigo Bank programme is entirely dependent for its success on the support  of the local community – who are stakeholders in their branch. The third study illustrates the increasing significance of the branch to the credit union movement within the US.

SECTION 6: MISCELLANEOUS PAPERS

A view has been developed by Deloitte & Touche LLP (Deloitte) that UK banks are  struggling to maximise the benefits of their branch networks – for both their customers and themselves. Few banks are seen to have addressed all aspects of necessary branch transformation with the disciplined approach that the subject demands. Chapter XXX summarises the views of the firm on this situation and the six key disciplines that  it proposes as a route to effective branch transformation.

CONCLUSION

As this report also evidences, the key issues that must now be on the agenda of any bank committed to maximising the effectiveness of its retail branch network include:

-     the brand at the branch – and how it is fully articulated;

-     defining and developing the branch experience for customers;

-     the development of branch staff skills;

-     the development of CRM systems;

-     developing an optimal and affordable retail format to support the above initiatives;

-     the overall management of existing and planned branch investment to ensure that it achieves and sustains the required return; and,

-     maximising the effective use of customer-activated terminals within the branch.

SECTION 1: INTRODUCTION

1. Overview

SECTION 2: BRANCH-LED RETAIL BANKING

2. Australia and New Zealand Banking Group Limited, Australia

3. HBOS Group, UK

4. YES BANK, India

SECTION 3: BRANCH DESIGN STUDIES

5. BBK B.S.C.

6. Credit Suisse, Switzerland

7. Lloyds TSB Bank plc, UK

8. The Co-operative Bank, UK

9.Wachovia Corporation, US

10. Cameos in branch design

SECTION 4: SALES AND SERVICE

11. TD Canada Trust, Canada

12.Turkiye Garanti Bankasi AS (Garanti Bank), Turkey

13. Cameos in branch sales strategies

SECTION 5: THE BRANCH IN THE COMMUNITY

14. Bendigo Bank, Australia

15. Caja Navarra, Spain

16. Delta Community Credit Union, US

SECTION 6: MISCELLANEOUS PAPERS

17.Winning with branches. Six key disciplines for branch tran

18. Increasing sales effectiveness

19. Back to basics – the eight-step solution

20. Optimising the return from branch network assets

21. Self service – automating teller transactions, customer service and sales

View full Summary Report

 

To order a copy of this report:

- contact us by email

- call us on +44 (0) 20 7563 5638

VRL publishes around 30 in-depth reports every year. Containing proprietary data, in-depth analysis and considered intelligence, VRL reports review the most pressing issues and trends impacting on the world of finance and cover a broad range of topics. These reports are compiled by associate editors, who are specialists in their field and contain original, previously unpublished content, based on fact and expert opinion. VRL reports provide the analytical intelligence needed to make informed business decisions in a concise and cost-effective manner, and often negate the need to incur costly external consultancy services.

In a recent customer survey on reports, conducted by VRL, 92% of respondents stated that VRL reports give access to information that is otherwise difficult or time-consuming to acquire. 93% said it gave them a good overview or summary of market developments. Overall 83% rated quality of information as excellent or very good and content and scope of coverage was rated at 94% and 82% respectively

 

 


Retail Banking Products:

Publications:

Retail Banker International
Banking and Payments Asia

Conferences:

Retail Banking and Cards Forum, September 2010, Bahrain (TBC)  
Retail Banking/Payments Innovation, Kuala Lumpur, 11-12 May 2010

Roundtables:

Retail Banking/Payments Asia Roundtable, detailed subject matter TBC, Hosted by Titien Ahmad, VRL Asia-Pacific, and Hugh Fasken, Editor, Retail Banker International, August 2010

Reports:

Bancassurance: The Lessons of Global Experience in Banking and Insurance Collaboration
Bank Mergers and Acquisitions
Best Practice in SME Banking - 2nd edition
Banking And Risk 
Branch Banking Best Practice in the Worst of Times 
Call Centres in Retail Banking - the Path to Excellence 
Consumer Finance in Latin America
Creating Female-Friendly Financial Services: Strategies, Opportunities and Lessons   
Creation from Destruction 
Cross-selling in Retail Banking: Meeting the Revenue Growth Challenge
Financial Services in China
Indian Retail Finance
Knowledge, Social Media and Learning in Financial Services
Non-Listed Banking Model
Peer to Peer Lending
Post Office Financial Partnerships
Restoring Trust and Credibility in Financial Services
Retail Finance in Japan
Retail Financial Services- An Overview |
Self Service in Retail Banking: Developing and Implementing a Successful Self-service strategy
Segmentation in Financial Services
Strategies for Banking the Unbanked: A Global Market Opportunity
Survey of Global Islamic Finance
The Branch is Back   
The Business Case for Biometrics in Finance - 2nd Edition 
Mobile Banking and Payments
Web 2.0 in Financial Services
Social Media in Financial Services