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- W2993221336 abstract "Branches have mushroomed up in New York City, Atlanta, and Chicago as well as in new beltways and developing rural zones, making it, once again, the channel most on bankers' minds and leading their strategies in 2003. Daily has reminded retail bankers that the is where they tend to open the most new accounts and where significant selling gets done, says Mark Sievewright, president and CEO of TowerGroup, Needham, Mass. this three-part report, we'll look first at the notion of a much-touted branch mania. By this, we're referring to the activity of many retail giants, who've begun to build their network, and in some cases, move into new geographic territories. response, community banks are often keeping pace with the building spree, too. What are the implications of dramatic expansion? We'll tell you what experts say. the second section, we'll revisit the notion of experience banking touted by design and branding firms that include Willey Brothers, Rochester, N.H., and Newground, Manchester, Mo. How has the concept held up and what, if anything, is being handled differently in the quest to improve atmosphere? Third, we'll look at that most important ingredient of all: personnel. Are employees prepared for the increased sales and service task being given to them and how is the design-and tools in it-helping them do their jobs better? Experts entranced by technology had long predicted that the would disappear, but Federal Deposit Insurance Corporation data show that, in 2003, with over 87,000 branches in the system and more announced, they couldn't have been more wrong. At every level of the industry, there is a renewed interest in the physical network with activity announced or underway, notes Steve Reider, president of Bancography, a planning and market research firm in Birmingham, Ala. And, it would seem, bankers have been breaking ground in every nook of every state of the union. Some attribute the recent construction we've seen-especially in big cities--to the inflow of deposit money in response to volatile capital markets. The industry is flush right now, says Mark Sievewright, president and CEO of TowerGroup , based in Needham, Mass. Bankers want to attract and retain high net worth customers by creating inviting, sophisticated retail environments that offer an umbrella of services. Yet bankers would be foolish to build dozens of costly branches merely to chase after cyclical cash flows of a select segment, notes Sievewright and others. fact, the industry is responding to multiple trends in their push to build branches, often in regions that are break out for them. First, they're appealing to mass-market demand to shave minutes off errand times and make consumers more efficient in coping with their finances. We're a society that thrives on convenience, says Reider. We want it now and we want it delivered simply. Marketing plays a role in this. In pace with other he says, commentary tells bankers that if they want to reinforce brand and build market share, they have to have a corresponding physical presence. Anjalee Davis, a retail-banking analyst with Celent Communications, Boston, agrees that bankers are minding the Ps and Qs of their research on customer preference-which is clearly in favor of the and the face-to-face contact it provides for handling complicated applications or receiving advice about products. Banks are also fighting the tendencies of standard customer attrition and simultaneously trying to grow market share by reaching to newcomers. our increasingly transient nation, says Reider, bankers are building friendly locations to attract the perpetual stream of new arrivals. Finally, the industry has also been affected by the urban sprawl that's impacted other retailers, and so are building to be closer to customers. …" @default.
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- W2993221336 date "2003-08-01" @default.
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- W2993221336 title "Branch Mania: A Look into the Expanding Branch. (Cover Story)" @default.
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