Branching Out or Pruning: Developing Rational Branch Strategies
Many banks are applying new terminology to a proven and familiar channel – the branch. Some common names are banking centers, financial offices, stores, money shops, and cafés. While most banks continue to use the word branch, its role has changed in the constantly evolving financial services delivery mix.
Branch performance measures have improved dramatically, and new approaches for serving clients are being innovatively tested. And there is a growing base
of financial service users who have never set foot inside a branch, and will not unless attracted or forced to, so banks have had to address these important customer groups with an array of complementary electronic media and transaction tools.
In this Strategic Commentary entitled “Branching Out or Pruning: Developing Rational Branch Strategies in the Electronic Era,” Speer & Associates, Inc. (S&A) will examine the current role of the branch in the mix of financial services delivery, and seek to provide a context in which the branch will continue to serve a vital core of customers well into the foreseeable future.
