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How Does Branch Consolidation Affect Your Results?

Most regional banks have reduced their branch networks over the last three years, but there’s been significant divergence in their results, according to Curinos’ BranchScape (see chart).  

Institutions in the lower-left quadrant of the chart have aggressively reduced their networks, but their average deposits per branch remain below the industry average. There’s a risk that they let the savings fall to the bottom line without reinvesting some of it in marketing, digital and salesforce to drive growth.  

The lower-right quadrant represents banks that have closed branches more slowly than their peers but still lag in deposits per location. For some of them, more network consolidation may be in order, especially if their bubble – which  represents their average branch density across their top 20 markets – is relatively large. 

Banks at the top half of the chart have higher average balances per branch. Bold consolidations may have driven them from the bottom half to the top. Higher levels of branch profitability have positioned them for continued investment to propel future growth. 

Three-Year Branch Count CAGR By Average Retail Deposits Per Branch

Top 100 Banks In The US By Retail Deposits*
The pace of branch consolidations should drive larger branch size,
but only with reinvestment to drive growth.​
Note(s):*HSBC removed as significant outlier​
Sources: Curinos Analysis, Curinos BranchScape

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  • Author
    • Andrew Hovet

      Andrew leads the Distribution and Sales Performance practice at Curinos.  His work includes leading advisory projects for clients in these domains and providing a series of benchmarking and analytic platforms to help accelerate retail banking performance.   Andrew assists clients with their distribution network and workforce challenges, with a specific focus on the transformation needed in light of changing customer behaviors.  Andrew’s career of more than 25 years has included roles in both retail banking and consulting.

      View all posts Managing Director
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