Gina Bleedorn and Sean Keathley take on the critical role of data intelligence in making smarter location-based branch decisions.
With shifting consumer behavior and rising competition from all around, banks are looking at ways to capitalize one of their best points of differentiation – the local branch. With the branch cited as consumers’ most critical factor for new financial institution consideration (Novantas, 2020), and a record percentage of consumers and businesses considering switching primary financial institutions (KPMG, 2020), the opportunity to leverage the physical channel for growth is at an all-time high.
Mapping the right data to the right decisions remains a challenge for financial institutions. “With all the data available to them, institutions are really struggling to get what’s useful out of it, and turn it into action,” according to Gina Bleedorn. “There are some key questions that you need to answer, starting with this one: Who is really in the market where you currently are and where you want to go?” Market and competitor data provide directional insights on area profiles, competitive density and projected growth. “All of these are macro factors to help select markets and weigh one market against another and the places within markets generally to go.”
What really matters in data-driven decision making (DDDM) is finding ways to activate the right data and mapping it to the right decision, and for that, we need to get more granular. “Beyond that first layer of data for decisioning, there is a new type of data called a few different things – mobility data, location data, traffic data, movement data,” according to Gina Bleedorn. “It’s essentially data that’s anonymized and aggregated from mobile devices that are giving us a far more accurate picture – who people are, where they are going and when.” Post-COVID this more precise data for patterns of traffic, movement, behavior and profiles has even more heightened importance because there has been such movement during the pandemic.
So what kind of decision-making does this data drive? Depending on your network strategy, it can tell you where to double down and where to expand to with a new build. “In thinking about data as a backdrop to make these decisions, opportunities become clearer,” according to Sean Keathley. “Potential sites in existing markets or adjacent markets – that may be a renovation opportunity – but certainly we’re seeing a new trend where people are thinking about building new in a new market where people have moved.” These opportunities include renovate, relocate or building new in opportunity markets.
This kind of mobile movement and market data insights translated into actionable branch network strategies are the keys to transforming your physical delivery. This optimized network will do two things – drive efficiency and growth at the same time. Aligning branch investment with potential can create a roadmap for both savings and growth. “Often thinking about investing, like with a home renovation, knowing where to stop becomes the challenge,” according to Sean Keathley. “Data helps you decide your high water marks and site analyses start to reveal the existing opportunity, so you can start to understand how to best deploy your dollars.”
For more insights about building a powerful data-driven strategy for expansion and growth, watch the on-demand webinar “A Whole New World: Translating Data Intelligence into Actionable Branch Location and Format Decisions.”
For more information and insights on decision-making from the brand to the branch, visit Adrenaline’s Insights channel and see Believe in Banking for the latest data on branch banking. To speak with one of Adrenaline’s branch experts about developing an optimization plan for your network, especially important in the post-COVID era, contact us at firstname.lastname@example.org.
Adrenaline is a brand experience company that creates and implements end-to-end branded experiences through creative and environmental design. We enhance our clients’ customer experiences across digital and physical channels, from their branding and advertising to design and technology in their spaces. After transforming an organization’s brand, Adrenaline extends it across all touchpoints — from employees to the market to in-store environments. And, we focus on serving industries that sell human experiences including financial, healthcare, sports and entertainment.