Distribution

Retail banking distribution is changing rapidly as the industry faces the combined force of regulatory pressure, technological innovation, and evolving customer preferences. Novantas helps client anticipate and react to these changes, and to develop better sales and revenue yield from existing and future investments in branches, ATMs, and people.

With revenue under severe pressure from economic conditions and regulatory changes, we estimate that perhaps 27% of branches in the US are structurally unprofitable, and won’t ever become money-making in the future. Consumers are increasingly willing to consider alternative channels, and in fact many of the highest value customers are already largely online and mobile-centered in their preferences and behaviors. Productivity in branches is falling nationally at 5% per year, yet under current staffing practices, there are minimum size levels for branches which constrain banks abilities to shrink staff. Banks have to decide where to go next: bet big on mobile, focus online, invest in the network, build a sales force. These are all multi-year decisions, so getting them right matter not only now, but in 2015.

Having an in-depth understanding of customer preferences, now and in the future, is central. So is developing a detailed roadmap of the changing patterns of demand in the local market and among customers and prospects, for different channels of the distribution network (branches, phone, online and mobile). Knowing how much to spend on mobile and online (and where) is now increasingly as important as knowing how many branches to build and where. Determining what type of customer experience will be delivered within and across channels matters more and more, as customers become more distinctive in their behavior. Finally, knowing both how many staff are needed to deliver these experiences, at what skill level, and against which set of performance benchmarks determines whether the best strategy in the world can be effectively implemented.

Novantas Retail Banking Distribution offerings are designed to help banks with challenges from understanding their customers distribution preferences to developing network, online and mobile strategies, to developing new staffing models and managing performance. We provide services including strategic advisory, primary customer research, detailed strategic planning and financial modeling support, and tools and methods for enhancing banks own in-house capabilities.

Please click on one of the detailed products for a deeper discussion of each and examples of recent work.

• Segment & Channel Strategy
• Market Analytics
• Network Optimization
• Customer Experience