Background
You are engaged in a project with one of the nation's top super-regional banks, which operates in eight contiguous states. The bank is reevaluating its traditional local branch model in light of the evolving landscape of electronic banking and commerce. The concept being considered involves replacing branches with Calling Centers offering a wide range of live and automated phone-based services. Your task is to set up the engagement and determine the viability of this new concept.
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Issues to Consider
Market Analysis: Examine the customer segments attracted to the Calling Centers and those turned off by them. Hypothesize which customer groups are more likely to adopt this service based on age, profitability, and preferences.
Revenue Generation: Explore potential services that could be added to increase revenues. Consider services like automatic bill payments, fund transfers, and more.
Cost Savings: Evaluate the costs associated with establishing Calling Centers and assess the associated risks. Consider factors such as branch closures, reduced foot traffic, and potential staff reductions.
Possible Solution: Structure the engagement as a comprehensive cost-benefit analysis. Calculate the value by estimating the number of new customers attracted to the new service, the expected revenue from these customers, the additional revenue generated by potential new services, and the cost savings. Ensure that these benefits outweigh the potential loss of revenue from customers who might be driven away by this shift.
Conclusion
By following this approach, you can determine the viability and potential benefits of transitioning to Calling Centers. This analysis will aid the super regional bank in making an informed decision regarding the shift from traditional branches to modern electronic banking services.
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