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Branch Network Optimization

Branch Network Optimization

Capital Performance Group provides the insight and guidance to help banks:
 
  • Fund new channel development through branch network consolidation, closures, and divestitures;
  • Allocate staff, marketing budgets, and capital investments to align with sales potential and customer needs;
  • Determine the appropriate number of branches and mix of facility types in each market;
  • Identify opportunities to automate transaction processing and downsize facilities to reduce labor costs;
  • Analyze and prioritize expansion opportunities across both new and existing markets;
  • Identify attractive acquisition targets and integrate delivery systems; and
  • Achieve management consensus for all of the above.
A Complete Decision Making Process
While we utilize and provide our clients with reusable models and analytics—including our proprietary BankRankTM program—we appreciate that most organizations need more than analytical tools. CPG assists banks to:
 
  • Utilize relevant market data and performance metrics to yield definitive and fact-based distribution planning strategies;
  • Develop customized models and analyses that reflect the bank’s positioning and unique business objectives;
  • Evaluate recent market trends, competitor movements, anticipated developments, and other critical factors often not reflected in quantitative modeling exercises;
  • Employ rigorous, field-tested financial analyses to qualify preliminary recommendations and help dictate performance requirements;
  • Devise a decision making process that cultivates consensus and ownership of the ultimate plan amongst all stakeholders; and
  • Create actionable strategies and implementation plans that provide momentum for moving forward and facilitate tracking and evaluation of execution results.

CPG’s approach to Branch Network Optimization
We guide clients through a four-step process designed to provide objective, fact-based analysis and ensure internal ownership of results.
 
1. Project Organization
  • Project objectives and required deliverables
  • Bank’s decision making process, including how to involve Regional Presidents and other key stakeholders
  • Analysis parameters and information requirements
  • Project work plan
  • Project working team and roles & responsibilities
2. Analysis
  • Macro market analysis
  • BankRankTM analyses
  • Qualitative outlook analyses
  • Physical office characteristics assessment
  • Micro market analysis
  • M&A candidate analysis
  • Analyses to determine necessary market coverage & channel mix
  • Financial impact analysis
3. Decision Making & Planning
  • Development of strawman recommendations
  • Presentation of analysis findings and strawman recommendations
  • Facilitated working sessions and stakeholder meetings
  • Documentation and confirmation of all decisions
  • Implementation planning
4. Execution & Ongoing Improvement
  • Implementation assistance
  • Regular status checks to assess progress and reconfirm plans
  • Development of scorecards to enable performance measurement and continuous improvement
  • Periodic refresh of analysis to confirm or refine optimization requirements
CPG’s Perspective Regarding Branch Network Optimization
We view branch network optimization as one of five critical elements of creating an effective branch distribution strategy.  We would be pleased to talk with you to determine how we can best assist your team in any of the areas below.
 
Role of the Branch Channel
Define sales & service objectives & office types
 
Branch Network Optimization
Determining network size, structure, & market placement
 
Branch Design
Specifying office layout, staffing, branding, & merchandising requirements
 
Work Process & Technology
Specifying how offices fulfill role objectives
 
Performance Management
Ensuring productivity, efficiency, & targeted customer experience
 
All within the context of:
  • The company’s strategic goals & financial objectives
  • The bank’s customer value propositions & positioning
  • The broader distribution system plan, requirements & capabilities
  • A changing macro-environment (market, competitive, regulatory)
  • Consideration of organizational strengths & weaknesses
 
To download a pdf of CPG's Branch Network Optimization services, click here. 
 
For more information, contact us at 202-337-7870 or via email.