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, financial institutions (FIs) have to continue to change, always quantifying performance, measuring performance, and managing change to improve performance. Competition is fierce for FIs, 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, LEVEL5 have partnered with over 150 FIs across the US. Each FI has embraced process integration to define a business case, connect/design with the opportunity and construct to that case. In the last four years, we have completed over 100 design-build projects: branch and main office transformations, denovo branching, main offices, and operation centers. And, we have another 50 projects flowing through the system. Therefore, measuring the effectiveness of the strategies we create, quantify, and implement through construction is huge in measuring performance – our clients and our own.
The Research and Results
Last month, we completed a thorough examination of our client’s branch performance. We went back to our clients to quantify, and measure the effectiveness of the implemented branching plans, so we can improve. Processing their data, here is what we found:
- Our client’s branches are producing an average of $35 million in net new business
- Our business case projections were 92% accurate
- Our clients are growing total assets – 10% annually, compared to the national average of 3.2%
An integrated approach to branching. The results our clients have experienced 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 FIs investing in branching.