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Financial Institutions are re-configuring branch networks to meet changing customer demand, closing bank branches and investing in new channels.

 

Jon Voorhees, Peak Performance Consulting Group consultant and former Head of Distribution Strategy at Bank of America discusses strategies to improve customer retention, sales performance, and cost savings.

 

Teller volumes have declined by about half in the last several years. With far fewer volumes going through largely fixed cost facilities, the cost per transaction done within the four walls of a branch will only climb.

 

Since the recent Great Recession, only about 5% have closed. When you take into account the number of new branches still being opened, the net decline is only about 4% in the last five years. So the question for banks is why aren’t you closing more?

 

Many banks have discussed the need to cut costs and close branches but few have been aggressive in doing so. The main reason more banks aren’t closing branches is fear pf customer attrition, but with the right data, analytics and implementation approach you can move forward with confidence.

 

 

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