3 Steps to Evaluate the Effectiveness of Your Branch Network
1. Determine the market potential and current operating status of each branch.
Extensive discussions should be held with your senior management regarding the perceived challenges and opportunities presented within the network and future growth strategies. This self-awareness is critical in the formation of a plan that is relevant and relatable to the broader mission of the organization.
Out of those discussions come two important tools for gaining market and operational clarity: the Market Analysis and Strategic Branch Network Plan.
2. Develop a Market Analysis: An in-depth study of a market area to determine demographic, economic, retail, and financial product demand trends. This analysis provides detailed insight into the long- term viability of a market for a financial institution.
The Market Analysis should consider the following:
- Factors such as market growth, demographics, competition, traffic and visibility, and network synergy
- The creation of a new branch or if an existing branch should be relocated, resized, or closed
- The profitability potential of the branch
- Target member demographics
