Today, nearly 50% of consumers no longer depend on a branch for regular transactions, and radically different cost, sales and delivery structures are needed to keep customers engaged.
StrataScape was built to anticipate the full breadth of network planning analytics and needs, providing data and strategic frameworks to support ongoing network management. The platform integrates vast amounts of public, bank, and proprietary data into a consistent analytical framework for banks to evaluate current and future state network configurations. Delivered in an easy-to-use web-based front end, StrataScape assesses market opportunity, monitors and analyzes customer channel preferences, optimizes format and location, and manages real estate assets — all in one place.
Prioritize Markets for Investment
Build a detailed network strategy based on hundreds of metrics evaluating in-footprint and expansion markets.
Identify Branch Actions with the Greatest ROI
Given customer patterns by segment, understand where and why de novos, consolidations, closures, or other actions will generate favorable or unfavorable returns.
Maximize “Perceived” Convenience
Analyze the potential upside to building to scale – either branches or ATMs – in order to improve awareness and visibility.
KEY MODULES FOR NETWORK MANAGEMENT
Develop strategies and recommendations for efficient investment allocations and identify the best and works communities in each area for growth. Features include a full suite of GIS capabilities via Google Maps API.
Run a variety of scenarios to identify the best combination of branch-level actions to maximize growth and minimize attrition loss. Features include Nodal Analysis and Branch Optimization.
Track, segment, and analyze channel transactions and customer segments. Features include reporting on segment distribution and trends.
Gather vital real estate and tactical information into a “one stop shop” for real estate decisions and branch planning. Features include a rubric for capturing qualitative scores for each site.
Billboard Value scores helps analysts evaluate which branches contribute to the bank’s overall visibility and perceived convenience in a market as well as identify the branches that are not contributing. Looking across the nation, our analysis shows that branches located in the best Billboard Value block groups (Tier A, top 10% in market) gathered 44% more deposits than branches that were not in a top tier block group ($71mm compared to $49mm). The percent increase indicates that Tier A locations are located in the more prominent retail areas of a market, attracting more customers through the door!
Billboard Value scores help analysts evaluate which branches contribute to the bank’s overall visibility and perceived convenience in a market, as well as identify the branches that are not contributing. Looking at the statistics, our analysis shows that National banks (2000+ Branches) and Super Regional banks (1000-2000 Branches) have two-thirds of their network in good Billboard Value areas (60-67% of their branch network). Each bank in this segment will have a higher range of Billboard Value when you analyze the scores at the market level. In comparison to this segment, Mid-Tier banks (400-1000 Branches) and Community banks (50-100 Branches) tend to have much higher Billboard Value scores, with some as high as 94% (First Republic). Regardless of size, every bank has the opportunity to improve the Billboard Value of their network.
Customer attrition analysis, one of the five analytic essentials banks use to better manage their networks, provides estimates for potential customer attrition when a branch is consolidated. Novantas’s research has shown that those who switch banks are driven more by issues with their experience (43% might leave after bad service or issues with accounts) or the products (41% might leave if their monthly fees increased) rather than any reason to do with the branch itself. Banks must use analytics to better understand which factors about a customer best indicate their potential to attrite in order to support better financial decisions and branch actions across the bank’s footprint.
In this research brief, Novantas presents current highlights from our ongoing Shopper Surveys of U.S. consumers.
Novantas Webinar Series
October 5th, 2016 –Novantas is honored to once again be recognized as a FinTech leader in American Banker and BAI’s FinTech Forward Top 100 Companies.