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Steve Klinkerman
(212) 953-4444
sklinkerman@novantas.com
Novantas Probes Branch Network Performance Issue in Report Published by Consumer Bankers Association
October 17, 2005
NEW YORK - Novantas LLC, leading provider of management consultancy and information services to the financial industries, today released a joint study with BAI Research that shows how the rise of specialization in the deposit business could provoke important changes for large-scale generalist financial institutions.
According to its authors, Dave Kaytes, Rick Spitler, Peter Davis and Sherief Meleis, the modern retail bank must actively discern and then capitalize upon major differences among the regions it serves to achieve top-tier results.
The experts said each region should be examined in light of its potential, and that assessment should form the basis for resource allocation and performance measurement. Since each region differs, they said, it stands to reason that required resources and growth targets would differ as well.
The Regional Portfolio Management model requires each region in the branch network portfolio to be managed as a distinctive entity, said the Novantas experts. This approach, they said, demands radical changes to five core management disciplines focused on distribution: 1) planning and budgeting, 2) resource allocation, 3) performance measurement, 4) product pricing, and lastly 5) branch placement.
The report is part of The Defining Difference, a research series created exclusively for the CBA. Each quarterly report will delve into a particular aspect of targeted retail banking, detailing the business issues that executives face, providing specific recommendations on how to respond, and discussing the organizational implications.
The Consumer Banker's Association is the recognized voice on retail banking issues in the nation's capitol. CBA members collectively hold two-thirds of the industry's total assets, and include most of the nation's largest bank holding companies, as well as regional and super-community banks.
Novantas is the acknowledged leader in customer science and revenue strategy for the financial industries. The Firm specializes in applying advanced analytics and technologies to help clients make better decisions in marketing, product, pricing, customer management, and distribution.