Branching in a FinTech World?
Posted by Mr. Anthony Burnett, Customer Experience Director, LEVEL5, LLC on 8/22/2017

Consumers strongly desire branches. Doing it well drives performance.

Measuring is key for improvement. 
In today’s consumer-centric world, change is constant. In fact, the only thing that doesn’t change is change. However, if we can quantify the change, then we can measure, and improve.

If you build it, they may not come.
The world of branch banking has and is changing rapidly. FinTech and consumer behavior has disrupted banking as we know it. Therefore, credit unions have to continue to change, always quantifying performance, measuring performance, and managing change to improve performance.

Competition is fierce, and pressure from non-traditional sources force all decisions to branch to be supported by a business case. The perception by some industry experts, and pundits is this has not always been the case. Remember when you could build it, and they would come? Me neither!

So, branching has always been about establishing a business case, connecting with the opportunity, and execution. Each part of the plan is integrated with the next to eliminate unknowns, loss of information, and speed up the return on investment (ROI).

Measuring Effectiveness and Performance
Over the last decade, we have worked with over 100 credit unions across the US with their branch strategies and implementation.Therefore, measuring the effectiveness of the strategies created, quantified, and implemented (through construction and training) is huge in measuring the performance of these credit unions - and our own.

The Research and Results
Earlier this year, we completed a thorough examination of our client’s branch performance. We went back to quantify, and measure the effectiveness of the implemented branching plans to measure improvement. Processing their data, here is what we found:

  • Branches are producing an average of $35 million in new deposits
  • Business case projections were 92% accurate (projection was $32 Million)
  • Total asset growth was 10% annually, compared to the national average of 3.2% 

An integrated approach to branching. 
The results these credit unions are experiencing speak to what’s possible when specific strategies, tactics and actions occur. It is the integration of these components, through a specific project approach, that yields great returns for credit unions investing in branching.

Key Takeaway: Consumers strongly desire the branch for connection and relationship. Doing it well with a defined and executed business case drives performance for all the credit union's stakeholders.

For a deeper dive into the thought pattern and science behind earning a great ROI for branching click this link: ROI for Branching



Categories: Education & Training, Sales & Service, Strategic Planning & Consulting
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