Novantas Review Vol. 2 No. 1
Preserving old-style branches will be of limited value in a permanently changed market. For renewal, winning banks will look to the future of multi-channel retail distribution.
Acute pressure for branch cost reduction is much more than a temporary operating challenge. Instead, new strategies will be needed for a permanently changed market.
A national consumer survey by Novantas shows that customers are broadly moving online for basic banking activities, yet still prefer the branch for high-value transactions.
Retail branch banking has entered a period of radical change. Comprehensive strategies, as permitted by staff mapping, will be needed to transform the branch workforce.
Banks need to do far more homework on customers before rushing to market with mobile applications. A strict appeal to Generation Y sensibilities could backfire.
In an era of wrenching change for branch networks, small business banking has become a focal point for revenue growth and an outreach to priority customers and prospects.
In a challenging year, proactive measures to boost the top line are preferable to a strict focus on cost control, and their benefits can easily extend into 2012 as well.
With free checking and product push on the wane, branch management must now turn its emphasis to building an authentic sales and relationship culture.
As banks deploy more small business specialists across their branch networks, pressure is rising to make effective use of this expensive talent.