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“Banking 2016—Next 2016—Next
“Banking The key components of “doing Optimizing the
Generation Banking” Banking”
Generation the basics right” are: branch network
foundation: doing doing
foundation: 1. Branch network optimization (number The most critical aspect of “doing the
and size of branches), reviewing network
the basics right right
the basics architecture (i.e. hub and spoke model) basics right” is improving branch network
performance, ensuring sustainable positions
2. Basic multichannel integration, and creating adequate foundations for the
What is “Banking 2016—Next Generation alignment of channels and “Intelligent Multichannel Bank” model.
Banking”? It starts with getting integrated governance processes Branch network effectiveness can be
the basics right to address banks’ for real-time banking maximized through strategic localization
most immediate challenges: eroding 3. Proactive and reactive management (closing low-performance branches
customer trust and satisfaction. interaction based on customer needs operating in markets with limited potential
4. Operational customer first), identifying the right number,
segmentation driven by a needs- type, and format of branches according
based offering structure to target customers and optimizing
5. Sales force effectiveness powered by branch processes to free up commercial
consistent sales behaviors and tools time and focus on sales generation.
6. Simple and clear communication
with customers Networks composed solely of full-service
7. Performance management (new branches with duplicate services and skills
customer-oriented metrics) and are no longer sustainable. The branch
tailored compensation schemes network model must be designed with
careful consideration to differentiated
formats and integrated in a multichannel
view that is able to maintain territorial
coverage, react to local customer needs
and optimize skills and capabilities. This
extends beyond full-service branches and
hubs to include light branches (with an
average of 4-5 employees), kiosks and
cash-less branches. By migrating low-
value activities to digital channels and
retail-based formats, banks can satisfy
new customer segments and further
overall branch network transformation.
An efficient “hub and spoke” branch
model can help enable a bank to decrease
the branches in its overall network by
15-20 percent and reduce average branch
staff by 25 percent with the proper mix
of flagship, full-service, light and kiosk
branches. Furthermore, by specializing in
specific services or activities, each branch
format is able to deliver a more tailored
customer experience and, ultimately, help
increase customer satisfaction and loyalty.
Accenture Distribution and Marketing Services
Accenture Distribution and Marketing Services
“Banking 2016—Next 2016—Next
“Banking The key components of “doing Optimizing the
Generation Banking” Banking”
Generation the basics right” are: branch network
foundation: doing doing
foundation: 1. Branch network optimization (number The most critical aspect of “doing the
and size of branches), reviewing network
the basics right right
the basics architecture (i.e. hub and spoke model) basics right” is improving branch network
performance, ensuring sustainable positions
2. Basic multichannel integration, and creating adequate foundations for the
What is “Banking 2016—Next Generation alignment of channels and “Intelligent Multichannel Bank” model.
Banking”? It starts with getting integrated governance processes Branch network effectiveness can be
the basics right to address banks’ for real-time banking maximized through strategic localization
most immediate challenges: eroding 3. Proactive and reactive management (closing low-performance branches
customer trust and satisfaction. interaction based on customer needs operating in markets with limited potential
4. Operational customer first), identifying the right number,
segmentation driven by a needs- type, and format of branches according
based offering structure to target customers and optimizing
5. Sales force effectiveness powered by branch processes to free up commercial
consistent sales behaviors and tools time and focus on sales generation.
6. Simple and clear communication
with customers Networks composed solely of full-service
7. Performance management (new branches with duplicate services and skills
customer-oriented metrics) and are no longer sustainable. The branch
tailored compensation schemes network model must be designed with
careful consideration to differentiated
formats and integrated in a multichannel
view that is able to maintain territorial
coverage, react to local customer needs
and optimize skills and capabilities. This
extends beyond full-service branches and
hubs to include light branches (with an
average of 4-5 employees), kiosks and
cash-less branches. By migrating low-
value activities to digital channels and
retail-based formats, banks can satisfy
new customer segments and further
overall branch network transformation.
An efficient “hub and spoke” branch
model can help enable a bank to decrease
the branches in its overall network by
15-20 percent and reduce average branch
staff by 25 percent with the proper mix
of flagship, full-service, light and kiosk
branches. Furthermore, by specializing in
specific services or activities, each branch
format is able to deliver a more tailored
customer experience and, ultimately, help
increase customer satisfaction and loyalty.
Accenture Distribution and Marketing Services
Accenture Distribution and Marketing Services
