Branch Optimization: Choosing the Right Path for Long-Term Success

increase Growth and Profitability with curated branch network strategy

branch exterior depicting branch network strategy by Level 5

What is important in branch network strategy?

When it comes to strategically managing branch networks, financial institutions face crucial decisions about whether to keep, remodel, relocate, or close branches. These decisions can significantly impact growth and profitability over many years. While data plays a vital role in informing these choices, there are several factors to consider beyond mere numbers to ensure your resources and efforts are allocated correctly for healthy growth.

In this article, we delve into the strategies for making the right decisions and highlight the importance of strong leadership in shaping a successful credit union or bank branch network.

The Four options

Keep: Identifying High-Performing Branches

Identifying branches worth keeping involves a comprehensive assessment that goes beyond immediate performance. It requires evaluating various factors such as financial benchmarks, forecasts, and environmental considerations.

By examining both internal and external data, financial institutions can determine branches that not only perform well in the present but also show promising long-term potential.

Branch Remodel: Breathing New Life into Branches

Sometimes, a branch in the right market may experience a decline in performance. Instead of closing it outright, a remodel can be a viable option.

how the remodel helps

Through incorporating new technologies, design elements, and layouts, financial institutions can rejuvenate the member experience and attract and engage more customers with a fresh and modern ambiance. An updated branch remodel design enables them to tap into the untapped potential of existing locations.

interior depicting level 5 branch network strategy

Relocate: Unlocking Potential through Strategic Moves

Under-performing branches in suitable markets might benefit from relocation. The decision to move can arise from factors such as branch type, traffic patterns, or location restrictions.

data for relocation

Analyzing external data, including market trends and demographic information, helps financial institutions identify areas with greater growth potential.

By strategically relocating branches, they can leverage favorable conditions and improve overall branch performance.

Close: Making Tough, but Necessary Decisions

Closure is a challenging decision for any financial institution. However, there are instances where it becomes necessary to maintain the network’s performance. Branches that not only underperform but also adversely impact the entire network may require closure. Strong leaders must rely on internal and external data to make the tough call of closing branches that are no longer viable.

Work with Credit Union & Bank Growth Consulting Experts

Effective branch management involves making strategic decisions about keeping, remodeling, relocating, or closing branches.

In the dynamic landscape of branch network management, making informed decisions is vital to maximizing your credit union’s or bank’s growth and profitability. Financial institutions need a partner that can provide expert guidance and data-driven insights to navigate the complexities of keeping, remodeling, relocating, or closing branches.

That’s where LEVEL5 comes in. As a leading growth consultancy and best-in-class branch design and construction firm, we’ve specialized in branch transformation for over 20 years, offering actionable, comprehensive solutions tailored to the unique needs of financial institutions.