2020/08/12

Digital Efficiency for Bank Branch Networks

Optimization of Bank Branch Structures Based on Data Analytics
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"The number of bank branches will decline sharply over the next ten years," according to the results of a Bitkom survey from 2019, "The bank branch is in a difficult situation," it says. This has already been the case in the past, as branch networks have been thinned out for decades. In the age of online banking, the question even arises again and again of abandoning branches altogether.

In fact, another Bitkom study from 2019 shows that only 22 percent of those surveyed use online banking exclusively. By far the greater proportion are hybrid users (47 percent) together with customers who only go to the branch (30 percent).

This seems to paint a relatively clear picture: The branch still has its place in the market and branch services are in demand by customers.

However, the situation has worsened again due to corona. According to a study by Investors Marketing, the number of bank branches is expected to decline by more than eight percent on average over the next few years. According to the study, 3,500 branches are expected to be eliminated by 2025.

In this area of conflict - reduction vs. preservation - pressing questions arise: Where should the branches ideally be located? How can I get more customers to come to the branch? What services must I offer in the branch to be attractive to customers? Am I using the branch building and its space correctly? How can we improve our "operational resilience"? 

To answer these and many other questions in this context, Detecon International has developed an integrative approach together with partners: "Digital Efficiency for Bank Branch Networks". This approach combines procedures from "Smart Spaces", "Crowd-sourced Data Analytics", and "Building Information Modeling" and thus allows a holistic view of the bank branch world.

This approach goes far beyond a purely sales-oriented reduction approach. It provides real optimization for branch networks based on facts and extensive support for decisions within the framework of the respective branch strategy.

You can get an insight into this approach (in German language) here.

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