The report assesses the critical success factors involved
- 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
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
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
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
- 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
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
SECTION 4: SALES AND
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
SECTION 5: THE BRANCH IN THE
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
SECTION 6: MISCELLANEOUS
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
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
- developing an
optimal and affordable retail format to support the above
- 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
SECTION 1: INTRODUCTION
SECTION 2: BRANCH-LED RETAIL BANKING
2. Australia and New Zealand Banking Group Limited,
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),
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
18. Increasing sales effectiveness
19. Back to basics – the eight-step
20. Optimising the return from branch network
21. Self service – automating teller transactions,
customer service and sales
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