Does your bank’s long term business plan identify branch consolidations or closures as a strategic action item? That is the question that Paul L. Simoff, Principal, asks community bankers in his timely report, What You Need to Consider…Before Closing a Branch (link below).
Since the Great Recession, the number of bank branches nationwide has declined for eight consecutive years. This unprecedented trend is projected to continue once year-end tallies are finalized. Branches are projected to decline to approximately 90,000 offices by year-end 2016, a 10 percent reduction from their 2008 peak of about 100,000 branches.
According to Paul, now is the time for community bankers to evaluate their branch networks by vetting options and implications. In addition, he suggests that community bankers: understand branch profit metrics; develop realistic assessments about each branch market’s growth potential; reconfigure the branch servicing model; migrate toward digital/online sales and service channels; consolidate branch networks where feasible; and close branch offices when other options are exhausted. To read his report, click on the link below.What You Need to Consider…Before Closing a Branch