Strategic recommendations
Category: Branches
Explain to the group that it is important to translate these reports by recommendations and to imagine orientations respecting the strategy of our bank.
How is the future of our branch network?
Is our network adapted to our potentials markets?
What are the different components of our branch network to change, to improve the efficiency of our branch network?
This shows that these thoughts lead to dramatic decisions concerning the branch network. Consistency between branch coverage and market reality may lead to close or create branches or other forms of business presence.
Recommendations
Is our strategy consistent with the local markets?
3 main options concerning branches:
However, a branch is something rather costly: fixed investment, IT systems, staff, etc. and if the local opportunities hardly justify such an investment, but the bank still wants to be present or develop business, a range of alternative possibilities exist.
Examination of alternative distribution channels that can be developed instead of branches on the potential markets:
External growth : take over local banks / networks
Develop local partnerships
Remote banking, Electronic transmission, E-business
Wandering office (travelling executives)
Exercise
Ask trainees to imagine during five minutes the alternatives they can implement for part of their own network.
Then gather the ideas, list them on a table (model below) and mention their comments.
Ask them to comment and ensure that each proposal is viable within the logic of their own bank. This could be restricted to 2 or 3 examples if trainees come from a vast variety of banks, for schedule reasons.
TABLE
| Strengths | Weaknesses |
| Our comments | |
| Our recommendations | |
Recommendations
Opening, relocating, closing a branch is not enough.
Insist on that being present on a market does not mean the bank is efficient