The following is a brief summary of the keynote Danny Tang presented at Mini Conf' 18 in Salt Lake City, March past.
This is 2 of a 3 part series.
You can find part 1 here.
You can find part 3 here.
This section of his talk dealt with the first level of the top-down model for Branch Transformation called the Distribution Model. He moved onto the second part of the distribution model here.
The second element of the Distribution Model deals with Branch Formats. As mentioned in the Previous post about “Topology”, Different areas will demand different branch formats i.e. A residential bank branch will not be the same as a commercial one. There are 5 to 7 different branch formats. They range mainly from the hub branch to self-service centres and in between there are several variations of satellite branches.
1. Hub/ Flagship Branches
In order to curb customer doubt in the bank’s reputation and maintain brand image banks continue to build flagship branches. It is important to customers to know that their branch still cares about innovation and isn’t trying to shrink all their branches. Therefore, the flagship branch is essential to alleviate any insecurity in the mind of the customer.
2. Satellite Branches
There are many Satellite Branch types. The are listed below with descriptions.
2.1 Project Branch
These are specialist branches. They focus on helping customers with specific activities e.g. opening up a new restaurant. Again, it is based on the demands of the needs of the different customer profiles within the area.
2.2 Micro Branch
They are very cheap, barebones branches with not a lot of services available.
2.3 Advisory-only Branch
Employees provide basic services to customers e.g. account opening and customer service. Staff-less Branches and Pop up branches are also options.
3. Self-Service Centres
Lastly you have self-service centres. These are ATM’s. They allow customers to perform transactions by themselves and not have to engage any member of banking staff.
The main thing to note about branch formats is thinking about the target customer and ensuring that everything has a purpose.
THE ELEPHANT IN THE BRANCH!
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