Branch Banking in a Multichannel World, Part III: Case Studies in Branch Transformation

by Bob Meara, March 31, 2011
Case Studies
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Branch transformation isn’t just about ambiance. Although the minority, plenty of financial institutions are markedly improving branch channel effectiveness and efficiency by implementing time-tested technology alongside cultural and organizational change.

The first report in this series, Branch Banking in a Multichannel World: What Ever Happened to the "Branch of the Future?", August 2010, detailed the state of North American branch infrastructure along with its likely rate and extent of evolution. The second report, Branch Banking in a Multichannel World, Part II: The Many Faces of Change, February 2011, supplemented the quantitative picture with an analysis of the highly varied ways in which branch channel evolution is taking shape. This report presents multiple case studies in branch channel transformation from North America and Europe. Beyond what was done, these case studies look into how transformation occurred and the results obtained.

“The changing regulatory, economic, social and technological environment has created an imperative for branch channel evolution. Said simply, the branch isn’t dead, just different.” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “The good news is that well-established technologies and operating models are available. Financial institutions don’t have to be on the bleeding edge to transform their branch channel performance."

This report begins with a brief discussion of the “new normal” in retail banking: the factors driving the acceleration of branch channel transformation and their likely persistence. We then present four case studies in incremental branch channel evolution, which is where most financial institutions will start their journey: CRM lite, teller capture, teller cash recycling, and self-service. The report then presents four case studies in more comprehensive branch redesign efforts.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Branch Banking in a Multichannel World

5

 

The Many Faces of Change

6

Case Studies in Incremental Change

9

 

Kennebec Savings Bank: Electronic Banking Center

11

 

Northway Bank: Sales Effectiveness Solution

14

 

Sterling Savings Bank: Teller Capture

18

 

Webster Bank: Tell Cash Recycling

28

Case Studies in Branch Redesign

33

 

Coastal Federal Credit Union: Personal Teller Machines

35

 

Extraco Banks: Swarm Banking

43

 

Metro Bank: Love Your Bank at Last

53

 

North Shore Credit Union: iBranch

62

Conclusions

66

Leveraging Celent’s Expertise

67

 

Support for Financial Institutions

67

 

Support for Vendors

67

Related Celent Research

68

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