[VIDEO] | Branch Transformation Distribution Models: Part 1 of 3 by Danny Tang IBM

 

 

The following is a brief summary of the Keynote, presented by Danny Tang at Mini Conf' 18 in Salt Lake City, March past. 

 

This is 1 of a 3 part series. 

You can find part 2 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. 

 

Distribution Model

 

Within the Distribution Model are the following three elements:

  1. Topology

  2. Number of Branch Formats

  3. Locations

 

Topology

There are two approaches within Topology. They are:

1. Profit Centre (Monolithic)

2. Hub and Spoke

 

Profit Centre (Monolithic)

 

 

The first is the profit centre approach (Monolithic) which is sees each branch as an individual profit centre. They are seen to be separate from other branches. It is a competitive approach.

 

Hub and Spoke 

 

The second approach is Hub and Spoke. Within this model, The branches are all interconnected and support each other. Within any market that you choose to locate your branches, you will have three types of branches. They are: 

1. Hub branches

2. Satellite branches

3. Self-service centres

 

1. Hub Branch

 

The first is a hub branch. This is usually close to your headquarters. It is a full-service branch and keeps does the job of maintaining brand image and reputation.

 

2. Satellite Branch

 

 

Surrounding the hub branch will be satellite branches. They are smaller, and have less services available. As they are more focused on customer relationships, their goal is to provide only the most relevant of services to the customers within those areas to allow the costs to serve to be low. Understanding the area in which the satellite branch is located is key to knowing which services to provide. The services provided in a residential area will differ significantly to those provided in a commercial area.

 

3. Self-service centres

 

 

The third branch types are referred to as self-service centres. These are branches that deal mainly with transactions.

 

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