Restoring Branch Profitability

The cumulative impact of regulatory and legislative changes on the banking industry means that, for many banks, the number-one job is determining how to make the current branch network profitable. Some see the branch network as a high cost earnings drain that can only be fixed with more expense cuts. Others believe that the branch network is the key to future profitability. But to get there, banks need to leverage their branches to generate more face to face sales of higher profit margin products such as investments, insurance, and trust.

For the most part, banks have had the people and products in place to earn substantially more revenue per customer by cross selling. And, for years, senior management at many banks has made it a primary goal. Yet, on average, banks’ provide only two of the 10 financial products purchased by their customers. The big question on bankers’ minds – What can we do to build our share of wallet?