How banks use MarketMix to assess branch performance

November 19, 2020

Bank uses MarketMix to assess branch performance

Bank needs to assess branch management strategy

CHALLENGE:

Objectively measure branch performance

A leading bank wanted to enhance its branch management strategy. The bank knew which branches
had the highest AUM but did not know how they compared to other branches in the area. 

The bank wanted to:

  • Set realistic growth goals for each branch based on market opportunity

  • Identify underperforming locations

  • Assess if branches were best located to meet market demand

  • Optimize staff and resource deployment given market need

SOLUTION: 

Bank leverages MarketMix™ to compare branches by market size, share and growth

The bank used MarketMix to gain estimates of the total invested assets for defined geographic regions over time. By comparing branch AUM to MarketMix data, the bank could:

  • IDENTIFY the market share for each branch

  • DIFFERENTIATE growing branches in stagnant markets vs. growing markets

  • PINPOINT low market share branches in high growth markets (growth opportunity) vs. in low growth markets (consider reducing expenses)

RESULTS: Bank effectively segments branches by performance and market opportunity

 Using MarketMix, the bank was able to RETHINK BRANCH GOALS AND RESOURCE ALLOCATION. Findings included:

Several branches thought to be high performers were in low-growth markets or had low market share

Several branches thought to be low performers had high market share

Some geographies had too many branches given market demand

Some geographies required an additional branch to meet rapid market growth

Results may vary based on actual data and situation.

 
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