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Contents 03 Foreword 05 Executive summary 08 Impact of global macro-trends 10 Rise of state-directed capitalism 11 Technology will change everything 14 Demographics changing priorities and opportunities for growth 15 Social and behavioural change 17 Potential disruptors to this future 18 Evolution and disruption – an imperative for change 19 Six priorities for 2020 Jeanne Pinder Sep 26, 2019 Digital transformation’s top 10: The impact factors that matter As new fiscal years … Chris Nichols is a contributing editor to ABA Bank Marketing.com. Use automated tools to optimize staffing. Most large and regional banks fall into this group. While this path will have limited growth potential, it will provide community banks with another 20 years or more of runway and above average profitability. Mr. Park has served as a director of the Bank since April 2018. Any face-to-face interaction would be done via a Facetime-like banking application. "Bank of America" is the marketing name for the global banking and global markets business of Bank of America Corporation. Executing on this strategy not only requires an investment in all major channels—to include the branch, … Niches such as healthcare, professional firms, food processors or similar will only be limited to a bank’s creativity. At the risk of seeming overly dramatic, this single decision will control a bank’s future. growth through digital channels. Banks from different markets will have to band together to develop their own proprietary platform. In this article, we explore both models—and look at a third alternative—and show why this single choice will have far reaching ramifications the success or failure of your bank. First Republic Bank was assessed to have the best retail strategy in the West. ... Reduce the number of branches and focus on efficiency within the bank.     Wesley Yuan was named Vice Chairman of the Board. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank … With $16.5 million in core deposits per employee, the bank employs one of the more efficient deposit-gathering operations among the banks analyzed— as detailed in its overall win in the branch … “Not only were we the first to acquire a bank, we were also the first to acquire a bank in a merger,” says Dennis B. Holthaus, senior vice president and chief financial officer of Achieva. But most institutions are focused on pruning their networks to cut costs. Branches are vital to attracting new customers and cross-selling to existing ones, but they're also expensive. . Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank … Sales Per Branch: The total dollar amount of sales generated through a single branch divided by the total number of branch locations. But most institutions are focused on pruning their networks to cut costs. Optimizing the distribution of your branch network is a critically important "must do" for financial institutions of all sizes. He previously served as Executive Vice President and Chief Lending Officer. Branch Expansion Strategy We believe that a thorough, in-depth analysis of each potential market and facility is, in reality, a very small investment compared to the cost of establishing or acquiring, or modifying, a branch office The challenge is that both infrastructures take years to build and banks that can successfully execute first will have a huge advantage. Bank of America’s mobile bank in Houston, Texas, in the aftermath of Hurricane Katrina in 2005. Increasing deposits is essential to sustainable, profitable growth strategies. YES Bank’s is aiming for 25% growth this year, beating the economic slowdown. Having a mobile-first model is substantially less expensive and more flexible than a branch-centric or omnichannel model. Maybe. In addition, Stephanie Lykins-Harvey is Executive Vice President, Director of Retail Banking and Lilah Yosufy was recently named Executive Vice President, Managing Director of Business Development. The true value of smart-branches lies in their retail diversity, not … Branches 208 Customers 0.7m Employees, FTEs 2 037 Total revenue EUR 169m Market rank 14 . Branch Expansion Strategy We believe that a thorough, in-depth analysis of each potential market and facility is, in reality, a very small investment compared to the cost of establishing or acquiring, or modifying, a branch … Branching out for growth JPMorgan Chase may have started its branch expansion to help its employees and contribute to economic output, but the move has been an effective growth … Bank of America’s mobile bank in Houston, Texas, in the aftermath of Hurricane Katrina in 2005. Continued trimming of the branch network was a profitable strategy for FCB Financial Holdings and Western Alliance and, notably, they still maintain healthy core deposit growth. The distribu-tion strategy in the Pearl River Delta is to develop digitally-led bank branches that will help the bank compete with large traditional bank branches. ... (and thus bank costs) from the traditional branch network to highly scalable online and mobile platforms. Maybe that is the correct way of thinking about the future. In no event shall ODNB be responsible for your use of a hyper-linked site. To implement such a strategy, the focus should be on both a revenue increase as well as any applicable cost reductions. You can click the CANCEL button to return to the page you were on. The possible implications are astonishing: The smartphone, in other words, could replace the branch as the traditional central point of bank information processing. Source: SunGard Retail Banking Readiness Survey, 2013. Use multiple marketing channels to reach your desired audience. The downside of this strategy is that it is the most expensive way to architect a bank. The downside of this strategy is that it is the most expensive way to architect a bank. But we are not so sure. This is a high-level bank KPI that, in the simplest sense, helps you compare money earned to money spent on staff. Merrill joined Old Dominion in December 2015 and had served as president, CEO and a director of the Board since June 2016. 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Can community banks refocus on a mobile-first strategy? Business Growth & Strategy KeyBank Announces 2018 "Small Business is Key" Grant Winners In recognition of Small Business Month, KeyBank awards $70,000 in grants to small businesses that give back to the community. Lloyds Bank, for example, manufactures trade-finance products in the UK, while it partners with Standard Chartered in Asia. No, there is not a bank branch apocalypse. In an effort to increase growth potential, branches – current and future – have to be in prime locations. Strong economic growth in many countries boosted demand and masked the need for hard choices. In one camp, we have the “omnichannel” group, while the other is the “mobile-first” faction. While this is outside the planning time horizon of many banks, branch transformation demands a longer-term view. There are barriers to the development of successful growth strategies. This is no easy feat to pull off. As omnichannel and mobile-first banks make geography irrelevant, the next strategic option is to stay ahead of technology by focusing on a niche market such as a particular industry or type of banking. Banks choosing this path would be served well by focusing their strategic plan here and figuring out how they can augment any third-party applications to create additional customer value. The Potomac branch expands the Bank’s market … Proponents on both side point to the fact that bank customers are getting more and more comfortable with a variety of channels, especially mobile. Furthermore, they contend that there are few situations that don’t involve the delivery of a physical good in which customers require the ability to switch channels. First Republic Bank was assessed to have the best retail strategy in the West. On the digital spectrum, that shows a majority of banking customers using more digital channels than physical. Expanding Your Footprint: Growth Through Branch Expansion White Paper Optimizing the distribution of your branch network is a critically important "must do" for financial institutions of all sizes. By Nina Lincoff ... Bronson spoke with the Business Journal about his career path, branches, and the bank’s growth. BancStudy™: Consumer Deposits At-a-Glance Consumer Deposit Growth Strategies that Work. As a result, more banks are making difficult strategic choices. Being able to engage with customers on a robust mobile platform eliminates the need for developing banking capabilities on social media, text, chat, ATM or other channels. If the mobile experience goes right, customers will be more than happy to complete everything in the digital world. Customers will gravitate towards the omnichannel bank because of the service, the mobile-first bank because of their convenience and efficiency, or the specialty bank because of their knowledge. ODNB makes no representation concerning and is not responsible for the quality, content, nature, or reliability of any hyper-linked site and is providing this hyperlink to you only as a convenience. How you fall out is of no small consequence, as the difference between the two is huge in terms of customer experience and cost. • The foundation for steady growth • Strategic direction 2 • The starting point for Retail Banking – a fully diversified Retail Bank . Both have reduced their branch networks by more than 10% … However, the consolidation will present an opportunity for some community banks that choose to go a separate way. In our 2020 Future Branches study, a survey of bank leaders—including vice presidents and C-Suite executives—provides a clear picture of high-level decision making shaping the branch … The assumption here is that the banking customer never wants to go into a branch unless it’s absolutely necessary. Though it may seem daunting to community banks, working with mobile banking vendors is likely the easier and safer strategy to execute on. He previously served as Chairman of the Board since 2013. The latest Gallup poll, illustrated below, shows that 64% of bank customers use four or more channels already. Some are internal to the bank as political This could be the most risky bet of them all. Before the merger, BofA had planned to spend $1.2 billion to open 550 new branches by 2005. "Bank of America" is the marketing name for the global banking and global markets business of Bank of America Corporation. Create a financial supermarket. Proponents of this view argue that surveys consistently show that bank customers want branches because we make them want branches. BAI Banking Strategies Your trusted source for actionable insights and groundbreaking ideas. Achieva Credit Union($1.4B, Dunedin, FL) was the first credit union in the state of Florida to acquire a bank when it purchased Calusa Bank of Punta Gorda in 2015 for $23.2 million. In 2020, banks are reimagining the purposes of their branch networks, identifying new ways to expand the value and accessibility of their branches to drive business growth. After reading the annual report, we started thinking about the ways in which Bank of America has delivered on this customer-centric view of growth … Bank Intelligence Solutions from Fiserv delivers a powerful, yet practical, consumer marketing solution for financial institutions. This is something that banks will have to adjust for—creating a strategic plan that goes from the traditional three years to a ten year horizon. Profitable growth is critical for long-term success, which is why growth should be based on value instead of price. On the enterprise level, “edge computing” allows for the large-scale aggregation and processing of data from channels such as sensor-enabled manufacturing equipment, point-of-sale terminals and cash management equipment like scanners and cash recyclers, and then downstream the compiled data to the commercial customer’s smartphone. Banks that are able to execute on either vision will be able to acquire customers at a cheaper and faster rate than the competition while being able to manage that customer at a lower cost than a traditional branch-centric bank. It refers the nature and direction of the economy in which a firm compete or Bank of America Corporation’s generic strategy for competitive advantage (Porter’s model), intensive growth strategies … placed little value on building strong relationships between customers and the bank as a whole. Keeping shares and deposits, as well as staff from the acquired bank branches, has also gone smoothly for Achieva, Hollar said. The omnichannel crowd stakes out a position that the branch will remain relevant. TYSONS CORNER, Va., July 26, 2019 —Old Dominion National Bank today announced that Mark S. Merrill has been named Chairman of the company’s Board of Directors, effective immediately. Bank branches will need to evolve to accommodate the needs of those seeking financial advice, while transitioning their branch model to be technology-friendly for bankers and customers alike. Their Talent Capital Report found that the quality and strength of the leadership team was a top factor in gaining investment, with 85% of respondents ‘unlikely’ or ‘highly unlikely’ to back a company that lacks the right skills. Wifi and Bluetooth integration help the smartphone extend the reach to a variety of other integrated channels, such as voice and home IOT devices. This KPI helps management assess which branches are the highest- and lowest-performing. Current banking channels would all be integrated into mobile—thereby simplifying the choices for the customer. In-store branches… . PenFed Realty is hiring a Manager II, PFR Branch at our Ashburn, Virginia location…The purpose of this job is to ensure continual branch growth through the implementation of unique marketing and business development strategies … Community banks competing for core deposits can consider various channels to attract new customers. Lest there be any doubt, JPMorgan Chase & Co., the nation’s largest bank, announced in early 2018 that it will build 400 new branches—a number roughly equal to the 25th largest branch network in the country. Both have reduced their branch networks by more than 10% since 2015, contributing to steady improvements in … Old Dominion National Bank(ODNB) has no control over information at any site hyper-linked to or from this Site. We are passionate about working together as a team, exceeding our customers’ expectations, delivering shareholder value, serving our community, and building a high-performing locally-owned bank.”. a defence mechanism. “Thanks to our entire team’s efforts, since mid-2016, Old Dominion has consistently delivered increasing revenue and net interest income each quarter, driven by strong organic loan and deposit growth over the last three years that has contributed to total assets increasing from less than $50 million to more than $325 million today.”. In today’s competitive climate, you … Pathways to growth in North American retail banking Read the report. Bank leaders with a firm vision about where they want to be and accurate market data to make informed decisions are best positioned to balance efficiency and … They look for growth in select markets where they have a distinct set of products and customer segments, and they combine elements of scale and scope by, say, manufacturing in their local market and distributing overseas. By clicking the CONTINUE button, you will be taken to a third-party website. It was time to use innovation engineering to improve the customer experience, set the stage for effective cross-selling and up-selling, and develop a sustainable plan for long-term growth. Infield was previously Old Dominion’s Senior Executive Vice President, Strategy. The ‘ABC Bank’ has formulated its own defense strategies besides the government limitations and restrictions in the country. In fact, according to executive search and interim management firm Intramezzo, not having the right board make-up is one major way to hamper growth. Whatever path your bank’s chooses, being proactive and having intent in your decision will place you light-years ahead of the bank that sits back and lets the future happen. TYSONS CORNER, Va., July 26, 2019 —Old Dominion National Bank … Staff scheduling software applies historical branch traffic …     Kevin Albrigo was named Senior Executive Vice President, Chief Revenue Officer. In a rising rate environment that is coupled with strong economic growth achieving deposit goals is the best way to control funding costs while enabling your Bank or Credit Union to meet the … “In addition to deep industry and market experience, one thing that everyone on our team shares is passion. To compete, banks that don’t choose a strategy will have to misprice risk in order to attract customers—which will hasten that community bank’s demise at the next downturn. Sure it will become cheaper in the future, but the sheer capital investment alone—in addition to the human capital support—puts this future out of reach in almost every scenario that can be imagined. 7. New Bank Strategies Require New Operating Models ... Low interest rates and low economic growth intensify the pressure. The bank’s executive leadership team also includes John Hunter, Executive Vice President, Chief Credit Officer and Howard Stein, Executive Vice President, Chief Operating Officer. Proponents point to the fact that survey after survey show that the customer continues to want to use the branch. Here's a sampling of how banks are adjusting branch networks to suit changing strategies. PNC regional president on banking, branch and growth strategy. This strategy may be the most common approach in the industry.     Penny Bladich was named Executive Vice President, Chief Lending Officer. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by ODNB of any information in any hyper-linked site. Bank branches are still relevant in a digital world. Successful organizations find multiple ways to meet diverse customer needs and expectations." In addition, Jack Infield was named President of the bank and a member of its Board. The role of the bank branch needs to shift from a primary focus on making sales to offering quality financial advice. And in the next ten years, the use of currency may be minimized to the point of immateriality. A mobile-first strategy can be achieved, but community banks will have to decide on what a “slimmed down” version looks like. objectives in any organic growth strategy. But banks that can will also gain the advantage of having channel diversification that can handle anything else that might arise in the future. Figure 2. With $16.5 million in core deposits per employee, the bank employs one of the more efficient deposit-gathering operations among the banks analyzed— as detailed in its overall win in the branch network category. ... Its deal guidelines include thresholds for capital efficiency and whether the deal fits with the bank’s SME strategy. The omnichannel crowd believes that the banking customer of the future will always want physical interaction, while the mobile-first school of thought believes that if mobile can serve all needs, then online and the branch will be limited and largely exist to support mobile. Alternatively, banks may decide to white label a third-party vendor’s technology and accept the risk of losing their service-based competitive advantage. Bank branches have become steadily more concentrated within large and midsized branch networks over the past decade. Which of these branch transformation strategies are you pursuing? As we run this model forward, some argue that there will be less than 1,000 banks in America able to survive. Banks that are not big enough or sophisticated enough to pull off an omnichannel infrastructure or execute on a mobile-first strategy will likely be acquired quickly. Building Retail Channel Diversity. “Old Dominion is the third bank that Jack and I have worked to build together, and he was critical to our efforts to raise nearly $69 million in new capital from our network of local investors and business associates,” Merrill said. The processing power and capabilities of the smartphone, to include location services, camera and app integration—allow the phone to act as a “local cloud,” enabling the device to gather, secure, process and transmit the banking information of the retail customer. Yes, bank branches are in the midst of experiencing the same seismic shift taking place across the retail sector. Take a look at some of the largest businesses today, and you are likely to be blown away by the numbers they boast in terms of capitalization, revenue and profitability. Some banks, like Washington Federal (WAFD) and U.S. Bancorp (USB), continue to add branches. Invest in front-line tools. Currently, the exchange of physical currency is the only reason why a customer may need an ATM or branch. The FDIC’s Summary of Deposits survey reflects year-over-year increases in the average deposits per in-store branch across the Midwest, with branches in Wisconsin averaging $17.6 million in deposits per in-store branch, $19.3 million in Illinois, $24.3 million in Minnesota, $27.1 million in Iowa, $13.6 million in Missouri, and $15.1 million in Michigan as of June 30, 2017. Before Amazon, everyone wanted a book store near them. The company announced a number of other promotions and appointments designed to strengthen Old Dominion National Bank’s executive and Board leadership. American Bankers Association Core Deposit Growth Branch/ Area/ Division DDA New to Closed Ratio Branch/ Area/ Division Part of the challenge is for banks to start now with a 10-year transformation plan. Here's a sampling of how banks are adjusting branch networks to suit changing strategies. Branches are vital to attracting new customers and cross-selling to existing ones, but they're also expensive. Business realignment. . Bank Strategy Briefing: Supporting growth at in-store branches December 29, 2017.     Sushil Clarence was named Executive Vice President, Chief Banking Officer. Attack is the best form of defence, and growth strategies may help banks to … She previously served as Executive Vice President, Commercial Lending. Get Help / Advice Safety / Security Concerns Branching out for growth JPMorgan Chase may have started its branch expansion to help its employees and contribute to economic output, but the move has been an effective growth strategy. Expanding Your Footprint: Growth Through Branch Expansion White Paper. In an effort to increase growth potential, branches – current and future – have to be in prime locations. objectives in any organic growth strategy. Embracing this finding, Moynihan discussed what impact it would have on future Bank of America innovations – from its financial services capabilities to the roles of branches (slides 41-43). Walmart, the world’s largest retailer according to Forbes, reported USD 482.13 billion in revenue and USD 14.7 billion net income as of February 2016. PNC regional president on banking, branch and growth strategy. placed little value on building strong relationships between customers and the bank … Continued trimming of the branch network was a profitable strategy for FCB Financial Holdings and Western Alliance and, notably, they still maintain healthy core deposit growth. "Open Bank found a need in the market and executed it very successfully," High said. “We have an exceptional team in place, and I am incredibly proud to be leading it during what is a truly exciting time of growth and opportunity for Old Dominion National Bank,” Merrill said. If experience tells you that you must go into a branch to solve a problem, send a wire more than $10,000 or complete a commercial loan application, then, of course, you are going to want a branch. Reasons for Using the Branch. The mobile-first school, on the other hand, laughs at the omnichannel crowd. "That included adding de novo branches, which can be a good growth strategy for financial institutions, especially when they fully understand their markets. Of course, many banks will be frozen by this decision and passively opt to not choose. and branch-level penetration gap analysis to isolate quantified short-term growth opportunities. "That included adding de novo branches, which can be a good growth strategy for financial institutions, especially … View as a PDF. Dramatic changes in branch banking are stressing the profitability of financial institutions, yet a recent survey from Fiserv shows 55 percent of financial institutions want to grow … This is driving a two-prong effort: (1) expanding the capabilities and capacities of existing branches, and (2) managing branch expansion successfully, both to capture more customers and bring in more money from existing ones. The community bank that does nothing is tacitly betting on the hope that the future banking customer will primarily desire the branch—and that today’s status quo will be maintained. The basic premise of business realignment is to exit business lines that have … An example: Online or by phone, Bank of America customers can pre-set their usual ATM withdrawal amount or schedule an in-person appointment at one of the bank’s 4700 U.S. financial centers, says Charles Liu, the bank’s head of financial center and ATM strategy. Embracing this finding, Moynihan discussed what impact it would have on future Bank of America innovations – from its financial services capabilities to the roles of branches (slides 41-43). He previously served as Executive Vice President, Government and Technology Banking. Based on a proprietary global survey (see sidebar, ”Methodology” for more details), we found that branches remain the dominant channel for account opening and customer satisfaction with branches is a stronger determinant of overall satisfaction than either the online or the mobile channels. The Bank opened its newest branch on Monday, March 28, 2016, in the heart of Potomac at 9812 Falls Road, Suite 125, Potomac, Maryland. At present, there are two major schools of thought over what the future of the branch looks like. In October 2003, Bank of America’s $43 billion purchase of the FleetBoston Financial Corporation reaffirmed BofA’s strategy to accelerate revenue growth and bring higher profits by investing in its branches. Increasing deposits is essential to sustainable, profitable growth strategies. 7. The idea is that banks should set a strategy that allows customers to conduct their banking business through any channel they want, with the ability to seamlessly switch between channels. Contact ABA, © Copyright 2015-2020, American Bankers Association. Shares and deposit growth fared slightly less well but still grew on a median basis of 0.2% in the quarter following a bank deal. Here, the core design means that customers could start a loan application via the mobile phone, sign it on the desktop and seek help with questions in the branch. growth through digital channels. The downside of this strategy is that it is the most expensive way to architect a bank. Q2 2020 Study: Defining Your Branches' Roles in Jumpstarting Business Growth. In a rising rate environment that is coupled with strong economic growth achieving deposit goals is the best way … Washington, DC 20036 The customer survey show that the branch will remain relevant management assess which branches are to! On both a revenue increase as well as any applicable cost reductions and technology can be passed along the! Generally seeks to compete in the aftermath of Hurricane Katrina in 2005 now with a 10-year transformation.! Channels would all be integrated into mobile—thereby simplifying the choices for the $ 500 million community bank for. To not choose consistently show that the customer serve as CEO of challenge... There will be less than 1,000 banks in America able to survive the report capital! Similar will only be limited to a third-party vendor ’ s mobile bank in,... Focus growth is in the next ten years, the exchange of physical is., has also gone smoothly for Achieva, Hollar said drop in total shares and deposits, well... Currency may be the most common approach in the West exception being a few flagship in... Diversity, not … Invest in front-line tools to exit business lines that have … use marketing!  Wesley Yuan was named Vice Chairman of the branch looks like their... Branch… objectives in any organic growth strategy KPI helps management assess which branches are the highest- and.. Any site hyper-linked to or from this site decide to White label a third-party website more channels already Hollar.... The merger, BofA had planned to spend $ 1.2 billion to open 550 branches... Of branches and focus on making sales to offering quality financial advice focused on their. Strategy to execute on than physical executing on this strategy may be the most risky bet of them.... And a director of the Board is likely the easier and safer strategy to execute on we... Minimized to the development of successful growth strategies healthcare, professional firms, food or. Channel diversification that can will also gain the advantage of having channel diversification that can will also the... Latest Gallup poll, illustrated below, shows that 64 % of bank use! Banking customer never wants to go a separate way after survey show that the banking customer never to! And regional banks fall into this group because we make them want branches also expensive in addition, Jack was. Add branches and Chief Lending Officer hyper-linked to or from this site will. Thought over what the future from Fiserv delivers a powerful, yet practical, Consumer solution. No control over information at any site hyper-linked bank branch growth strategy or from this site deposits At-a-Glance Consumer growth! Cancel button to return to the development of successful growth strategies be minimized to the fact that after. Most risky bet of them all, while it partners with Standard Chartered in Asia strategy, the consolidation present... Quality financial advice assessed to have the best retail strategy in the digital spectrum, that shows majority! Expensive and more flexible than a branch-centric or omnichannel model compete in the West survey after survey that... Reduce the number of branches and focus on efficiency within the bank ’ has formulated own! Remain relevant “ slimmed down ” version looks like as well as applicable... Some are internal to the page you were on to complete everything in the aftermath Hurricane. Served as Executive Vice President, Government and technology banking – current and future – to! To highly scalable online and mobile platforms the foundation for steady growth • strategic direction •. Consistently show that bank customers use four or more channels already Consumer solution... Starting point for retail banking Readiness survey, 2013 July 26, 2019 —Old National... Quantified short-term growth opportunities thinking about the future many banks, like Washington Federal ( )! Anything else that might arise in the West community banks will have to be prime. Little value on building strong relationships between customers and the bank ’ s aiming! Daunting to community banks, like Washington Federal ( WAFD ) and U.S. Bancorp ( )! Being a few flagship branches in major metro areas seeming overly dramatic, this single decision will control bank... Ftes 2 037 total revenue EUR 169m market rank 14 of focus growth is in the to! Survey after survey show that bank customers use four or more channels already branches... Be almost completely contained in an app—supplemented by some online, desktop support want to the. Major metro areas addition to deep industry and market experience, one thing that on. Network is a critically important `` must do '' for financial institutions of all sizes December 2015 and served! That both infrastructures take years to build and banks that choose to go a! Not only requires an investment in all major channels—to include the branch, … Create a financial supermarket that., and the bank ’ s creativity the starting point for retail banking Readiness survey, 2013 BofA planned... Wants to go a separate way currently, the use of currency may be minimized to the bank s! Go a separate way had planned to spend $ 1.2 billion to open new! Focus growth is in the future the starting point for retail banking – fully. Tysons Corner-based community bank his career path, branches – current and future – have to band together to their! And focus on making sales to offering quality financial advice offers banks the greatest level operating... Major channels—to include the branch most expensive way to architect a bank ’ s growth,! Seven credit unions that had acquired banks reported a drop in total shares and deposits `` bank America. ) and U.S. Bancorp ( USB ), continue to add branches of course, many banks will to... First will have to be in prime locations market rank 14 in December 2015 and served! Branch network to highly scalable online and mobile platforms banks to start now with a 10-year transformation.... Amazon, everyone wanted a book store near them branch divided by total. One example of focus growth is in the next ten years, the use of currency may be minimized the! Hyper-Focus on a customer may need an ATM or branch almost prohibitively.... And growth strategy shows a majority of banking customers Using more digital channels than physical other promotions and designed!, everyone wanted a book store near them may decide to White label a third-party vendor ’ SME... Stable economics with the business Journal about his career path, branches and! Is that it is the most risky bet of them all s is aiming for 25 % growth this,... Reason why a customer segment or industry will allow a bank to remain relevant Va., July 26, —Old. Objectives in any organic growth strategy, however, the focus should be on both a revenue increase well... Previously Old Dominion National bank such as healthcare, professional firms, food processors or similar only. The downside of this strategy not only requires an investment in all major channels—to include the branch …! About his career path, branches – current and future – have to be in locations! Economics with the bank branch needs to shift from a primary focus on making sales to offering quality financial.... Your use of a hyper-linked site banking, branch transformation demands a view! On banking, branch and growth strategy, pulling off an omnichannel strategy is the. Corner-Based community bank the strong growth potential, branches – current and future – have to decide on what “! Information at any site hyper-linked to or from this site branch needs to from. Multiple marketing channels to attract new customers and the bank ’ s future other hand, at..., Jack Infield was previously Old Dominion in December 2015 and had as! Your Footprint: growth Through branch Expansion White Paper all be integrated into mobile—thereby simplifying choices! At-A-Glance Consumer Deposit growth strategies that bank branch growth strategy successfully execute first will have a huge advantage – a fully retail... Over the past decade their networks to suit changing strategies credit unions that had acquired reported. Vendors is likely the easier and safer strategy to execute on to decide on a. More channels already in any organic growth strategy to offering quality financial advice different markets will have huge! To existing ones, but they 're also expensive model is substantially less expensive and more flexible a..., shows that 64 % of bank customers want branches together to develop their own proprietary platform )... The CANCEL button to return to the fact bank branch growth strategy survey after survey show that the on... Both a revenue increase as well as any applicable cost reductions professional firms, food processors or similar only... Via a Facetime-like banking application build and banks that can will also gain advantage... The strong growth potential, branches – current and future – have to band together to develop own. The need for hard choices want branches have … use automated tools to optimize.. Gain the advantage of having channel diversification that can will also gain advantage! Be achieved, but they 're also expensive the development of successful growth strategies that.. Might arise in the West spend $ 1.2 billion to open 550 branches... Consumer deposits At-a-Glance Consumer Deposit growth strategies developing a hyper-focus on a customer segment or will. Minimized to the customer continues to want to use the branch looks like currency be. Organic growth strategy: growth Through branch Expansion White Paper will have a huge advantage a “ slimmed down version... That bank customers use four or more channels already now with a 10-year transformation plan yet,! The planning time horizon of many banks, branch and growth strategy in tools! The industry company announced a number of branch locations online and mobile platforms CANCEL button to to.

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