July 10, 2006

Improve Retail Branch Performance with BankPower                                  

Key Points:

  • Conduct an overall assessment of your market to select new branch locations where you have the most “wind at your back", using market area models that take into account your customer profile, growth rates, shopping patterns, and competitors

  • Launch new branches with a targeted sales and marketing plan that achieves growth and profit targets quickly

  • Identify the best growth opportunities in your existing branch trade areas and align resources,  sales goals and marketing efforts to capture them

  • Improve profitability by shifting resources from low growth to high growth opportunities

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Banks have re-discovered the value of the branch, and in some markets the pace of new branch growth is nothing short of torrid. In Austin, a developer built a complete 5,000 sq. ft. branch on spec, just waiting for your sign over the door! Chicago considered restrictions to limit the number of bank branches because so many retail stores were being converted into banks that the character of neighborhoods was changing.

You know the impact: increased cost of acquiring good branch sites, a competitor on every corner, and aggressive deposit price promotion as banks compete for market share and deposit growth.

In the face of these headwinds, it is even more important to fine tune your distribution management process. BankPowerSM  was specifically developed to help banks create sustainable growth – growth in your existing branches and growth because you make the best possible new location decisions.

  • BankPowerSM Index is a rigorous analytical model tailored to your bank. We use your customer data, analyze competitive strengths and weaknesses, and incorporate sophisticated retail shopping analytics to identify “hot spots” in your markets where new branches are most likely to be successful. This lets you select areas, and sites, where you’ll have the greatest wind at your back, rather than facing a headwind.

  • But “build it and they will come” only works in the movies. You need a program to profitably capture market share at your new location. BankPowerSM POP is a proven program for launching new branches so they achieve their growth and profitability objectives as fast as possible. We build a 12-18 month sales and marketing strategy that is unique for each branch, so you have a running start on profitable growth the day your new branch opens.

  • Don’t become so enamored with new locations that you forget about the tremendous growth potential in the branches you already have. Even if you aggressively expand your branch network by 10% a year it still means 90% of your investment is in existing locations. Plus, if you don’t have the process in place to successfully grow sales in your existing locations, why would you believe that your new branches will do any better? BankPowerSM MBA (Market Based Actions) identifies the strategies and tools to leverage each branch’s specific growth opportunities (specific targets and strategies for product growth and customers acquisition based on realistic measures of opportunity), combined with a training program to transfer knowledge to your branch managers to they can create sustained local market growth.

BankPowerSM is a proven, tested system that gives you the tools to improve your return on branch distribution investment. For further information about BankPowerSM and our work in helping banks and credit unions create sustainable, profitable growth, please call 616-454-9443.

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Peak Performance Consulting Group is one of the leading consulting firms specializing in financial services. For additional information please email info@peakconsultinggroup.com,call us or visit our web site.

Peak Performance Consulting Group®

616-454-9443

www.peakconsultinggroup.com

 

(c) Peak Performance Consulting Group, 2006