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BAI Banking Strategies Publishes FMSI Article About Tweaking Branch Hours



By W. Michael Scott
August 12, 2013

BAI Banking Strategies Article:  Tweaking Branch Hours with Analytics

"With branch transaction volumes declining more than 45% since 1992, financial institutions (FIs) are struggling to keep branches profitable. While branches are important to FIs as a resource for developing business relationships and customer loyalty, banks struggle to support the financial drain of branches whose transaction volume does not justify the corresponding operating expense.

One means of reducing overhead in these low-volume branches (LVBs) is adjusting hours of operation, yet many managers are uncertain where they can cut hours without impacting customer service. When asked why they don’t open a particular LVB an hour later, a bank retail vice president is likely to say, “Because this is how we have always done it, and it meets our customer’s expectations.”

A better approach is engaging in a detailed hours-of-operation analysis that examines actual customer transaction patterns. After such an analysis, these same senior level managers are often surprised to learn there are so few transactions occurring during the first hour of operation at their LVBs."

Read the entire article here: Tweaking Branch Hours with Analytics