Distribution: Traditional Bank Distribution (Branches/ATMs)

While there is a move away from the branch for everyday transactions (it is no longer the primary channel for researching products, checking balances, transferring funds, resolving issues or withdrawing funds), customers still are using the branch as their primary means of opening accounts, buying products and getting advice. Novantas helps clients optimize their branch network to the changing preferences of consumers through the use of rigorous branch siting models to understand the value of a branch or ATM investment, proprietary surveys to understand customer attitudes and behaviors, and proprietary databases to understand local potential and competitors.

Novantas helps our clients determine the optimal approach to a market given their target customers and the best way to serve those customers in the market. Local optimization plans will typically involve:

• Necessary changes to the existing branch network (e.g., renovations, relocations, consolidations and closures to respond to market and competitive changes)
• Optimization to determine the optimal number and placement of branches in the market (in some cases working with real estate partners to evaluate and adjust to available opportunities)
• ATM coverage optimization to determine the role and value of ATMs in the network
• Hours of Operations optimization to determine the best alignment between convenience to customers and economics of the branch network

Novantas differentiates its approach from other competitors by:

• Focusing on institution-specific segments of customers to ensure targeting is focused on opportunities relevant to the value proposition
• Taking a sophisticated view of competitors into account when modeling and optimizing (not just looking at where the competitors are but what target customers they are competing for)
• Network interaction analytics to take into account the impact on your network of changing the network, not simply looking at the marginal impact of a de novo/ATM
• Optimization is profitability driven — taking into account operating costs that vary based on the market and choices of the institution