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Jon Voorhees is an advisor at Peak Performance Consulting Group Before joining Peak, he was head of Distribution Strategy and Execution for Bank of America. 

Banks and credit unions are opening fewer new branches, so they have to be more selective. That means picking the right sites in the right markets.

 

 

Over the course of my career, I’ve helped select sites for over 1,000 new branches. In my role as a consultant, I’ve found that many C-level executives at community banks and credit unions aren’t familiar with some of the most fundamental principles that (should) drive a branch distribution strategy.

 

When crafting a long-term distribution strategy for a retail financial institution, there are three basic elements that should determine which sites are appropriate for new branches: markets, locations, and sites.

  1. The right market
  2. The right location/neighborhood within the market
  3. The right site within the neighborhood

 

How much of a difference does it make to get the right alignment? It can be as much as 50% impact on sales and branch size.

 

Take the time to get it right. You are making a long term investment and when all three things align, success will follow.

 

Read the full article with detailed recommendations at The Financial Brand

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