new delivery channel modernization · 2019. 3. 28. · delivery channel modernization team...
TRANSCRIPT
Delivery Channel
Modernization
Providing Exceptional Service
through Retail and Digital Strategies
Discussion Outline
I. INTRODUCTIONS
II. INDUSTRY PERSPECTIVES | TRENDS
III. CHALLENGES TO COMMUNITY BANKING
IV. OUR THOUGHTS
V. Open Q&A
Delivery Channel Modernization Team
Solidus—Mark Charette
Accubranch—Mike Goman
NBS—Tom Grottke
t: 860.838.3888
t: 860.841.3271
t: 860.436.6149
Industry Perspectives | Trends
Fewer/smaller offices win
Mobile banking adoption
New account opening
Up against the Big Banks
Satisfaction up, defections down
Industry Perspectives | Drivers
Strategy & Policies
Labor & Technology
Channel Profitability
Real Estate
Type/Location
Synchrony Financial Report, “The Future of Retail”*
“Show me—Entertain me—Teach me—Help me.”
55% of consumers prefer an in-store experience “that entertains me”.
Retail will be about “making the tedious stuff invisible and the fun stuff beautiful”.
Convenience, tech-driven personalization and instant gratification
will drive retail industry behavior through 2030.
“A new model of delivering not just products, but also
genuine brand experiences is emerging.”
* Guardian News, Edward Helmore
Branch Transformation: The Inline Branch
1,200 sq. ft.
Branch Transformation: The Inline Branch
Dialogue Tower
Brand Wall
Instructional Tech Bar
Digital Media
Hoteling Office
Branch Transformation: Market/Data-Driven Ground-Up Branch
Branch Transformation: Ground-Up Branch
Branch Transformation: Market/ Ground-Up Branch
Ground-Up Branch
1,462 sq. ft.
“Egg-shaped” interior
Ground-Up Branch
Branch Transformation: Dialogue Towers
ITM Machine
Branch Space 1,330 sq. ft.
Tellerless Branch
Challenges to Community Banking
“Will our costs be too high?”
No access to potential customers
Community message lost in cyberspace?
Attracting/retaining needed talent
Industry Perspectives | People Must Change
Branch Office Staffing
# Positions/Titles
1 Branch Manager
2 Assistant Branch Manager
3 Cust Service Rep (2-3 levels)
4 Head Teller
5 Tellers (2 to 4 levels)
VS.
1 Universal Banker (2 levels)
Industry Perspectives | It Must Be Lower Cost
Non-Main Office, Non-"Lge Branch" Typical Operating Model (Suburban/Rural)
Avg FTEAvg Cost
(000)Total Annual
CostBase Staffing Plan -
Branch Manager 1.0 $ 55.0 $ 55.00
Assistant Branch Manager 0.5 $ 45.0 $ 22.50
Cust Service Rep (2 to3 levels) 1.0 $ 37.5 $ 37.50
Head Teller 1.0 $ 32.5 $ 32.50
Tellers (2 to 4 levels) 1.0 $ 25.0 $ 25.00
Part-time Positions 0.5 $ 20.0 $ 10.00
5.0 $ 182.50
Universal Banker (2 levels) 3.0 $ 42.5 $ 127.50
Base Office Labor Savings - Per Office $ 55.00
Building Costs (avg.) - Sq. ft. Cost/FtTotal Annual
Cost
Traditional Avg. Branch 3,750 $ 28.0 $ 220.3
New Model Building Costs 1,800 $ 35.0 $ 157.6
Base Office Building Savings - Per Office $ 62.70
Total Base Office - Average Annual Savings/Office $ 117.70
Industry Perspectives | Trends
Data-driven decision making
Distribution channels & locations
Communications & branding
Market Analysis & Real Estate Activities
Data & research used to
identify the best locations
for strategic expansion.
Bank avoids costly mistakes in
planning, lease/purchasing &
permitting process.
Bank’s real estate dept. or
trusted partner applies
comprehensive expertise.
Market Analysis & Real Estate Activities
Account Holders
Drive Time Market Area 8 Min 15 Min
Front Porches 27.90% 17.00%
Parks and Rec 7.90% 14.40%
Savvy Suburbanites 8.40% 11.00%
Comfortable Empty Nesters 12.40% 8.50%
Metro Fusion 0.00% 6.50%
Account Holders
Savvy Suburbanites 19.41%
Parks and Rec 13.61%
In Style 11.27%
Comfortable Empty Nesters 10.20%
Green Acres 9.88%
Market Analysis & Real Estate Activities
Tapestry Segments (examples)
Tend to Bank Online Tend to Bank In Person
Market Analysis & Real Estate Activities
“On the ground” research.
Market Analysis & Real Estate Activities
Deposit Estimators
A scientific projection of
deposit growth over a
5-year period.
Based upon a specific address
Our Thoughts
The branch has a future
Can’t grow as exclusively online banking platform
“Local” is an advantage
Our Thoughts—”Must Do’s”
Lower your cost structure
Provide competitive digital delivery
Be a modern, fresh, attractive & friendly presence
Embrace the universal banker staff model
Open Q&A
Thoughts and Feedback
What are Bankers’ Views?
What Do Bankers Expect of Other
Neighboring Competitors?
Delivery Channel Modernization Team
Collaborative/Holistic Approach
Delivery Channel Modernization Team
Solidus—Mark Charette
Accubranch—Mike Goman
NBS—Tom Grottke
t: 860.838.3888
t: 860.841.3271
t: 860.436.6149