Branch Renewal & Channel Integration

October 1, 2003



Boston, MA, USA October 1, 2003

: A Case Study on Citizens Bank

Market consolidation, technology advancements, and new product offerings are all squeezing retail bank margins. In order to remain competitive, many banks are moving to renew their branches. Moreover, a few leading banks are leveraging the need to replace their obsolete branch technology as an opportunity to begin integrating their siloed channels.

According to Anjalee Davis, banking analyst at Celent and author of the report, "Most banks agree that they inevitably will integrate their disparate technology systems. Many banks, like Citizens Bank, view the branch and call centers as the core from which to begin their channel integration projects. In addition, web-based enterprise platforms are gaining traction. Banks almost universally agree on the value proposition of a web-based architecture, but most are waiting for a few large banks to successfully implement such a system before they launch their own."

Celent’s new report, " " examines Citizens’ one and half year branch vendor selection process. Unlike many banks, they were able to sufficiently balance short-term application and longer-term channel integration priorities. Moreover, they used a structured methodology to promote collaboration between their technology and business teams. Banks currently embarking on, or even in the process of, upgrading their branch technology will likely find their practices instructive.

Citizens Bank used a unique approach for their branch vendor selection process. For example, they engaged the final two vendors for a live pilot to compare the vendors development and management capabilities. Moreover, Citizens Bank is one of the few banks to by-pass the Windows client server configuration - the one favored by the majority of U.S. banks - for a web-based architecture.

Celent predicts that spending on branch technology will prompt channel integration initiatives. At the same time, increased spending on channel integration will also drive investment in branch renewal.

A is available online.


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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].

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Table of Contents


  Boston, MA, USA October 1, 2003

Branch Renewal &  Channel Integration

Return to report Abstract


  Case Study 5
  High-Level Technology Criteria 9
  Evaluation Team Structure and Process 10
  Stage 1 - The Long List 11
  Stage 2 - The Final Four 12
  Stage 3 - The "Shoot Out" 13
  Integration Strategy 19
  Implementation Process 20

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