The branch of the future is a fundamental part of the overall channel strategy for today’s retail banks. However, branches are having to develop from their traditional form. The world’s leading players are moving away from branch network management and instead are managing distribution across all of the bank’s channels but with a critical role on a number of levels for the physical branch.
Retail banks across the globe are rethinking their branch strategy in the context of their overall distribution strategy including direct/self-service channels. Within their multi-channel distribution strategy, the branch strategies of the leading players include numerous branch models that balance the needs of both the individual and SME client with the cost of delivery.
Not all models work equally for all retail banks. Implementing a mixture of branch models based on targeted customer segments in the local market working together with the overall bank strategic goals is the most effective strategy.