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Branch Strategy Services

Every bank has a unique situation today with its branch strategy due to technology taking the majority of customer transactions out of the branch, or with marginal profitability of some branches, or looking for opportunities to expand into more high potential markets or locations.  Bank Strategies LLC has experience in improving the profit performance of existing branches and helping craft overall branch rationalization plans including new staffing mandates and design considerations.

Fitch: Branch Network Redesign Key Cost Focus for U.S. Banks

Thu Apr 11, 2013


(The following statement was released by the rating agency) CHICAGO, April 11 (Fitch) Fitch Ratings, Chicago 11 April 2013:


A sharpened focus on cost reduction by U.S. banks will continue to drive a decline in the number of bank branches as well as a rethinking of branch operations in coming years, according to Fitch Ratings. Facing a challenging revenue environment and stricter capital requirements, U.S. banks will likely focus on branch network rationalization as a critical aspect of cost restructuring efforts. A number of large U.S. banks have cut the number of branches in recent years, particularly as mobile banking options have expanded and the frequency of customer branch visits has fallen sharply. Branch operating costs are a significant component of a bank's total cost structure, given their large staffing and real estate requirements…


We believe rationalization initiatives undertaken by banks with high branch-related costs, will continue as the industry operating environment remains tough. However, much of the rationalization process will involve a redesign of branch footprints, functions and labor requirements rather than a sole focus on branch closings. We think the branch of the future could look very different, with a shift in emphasis to technology in place of direct contact with bank personnel. Despite their declining importance as a customer contact point, branches remain important for U.S. banks in such areas as mortgage origination and investment management, where a complete cut-over to digital relationships is unlikely.


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