Are Retail branches a Liability or an Asset?

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What if we looked at Bricks and Mortar from a different angle? Are they more valuable than we previously thought? We have created new KPIs to make a better assessment in determining the true value of branch network for banks. 

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Needless to say that the future is mobile banking when considering long-term consumer trends as well as the cost benefits of servicing clients. However, one of our client is Rethinking Retail banking, whilst the competitors follow an aggressive strategy of branch closures. We will be looking to disrupt the market and establish a USP to fend off competition from the Tech giants as well as incumbent players. 

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There are luxury brands located on Regent street in London that do not make sufficient sales to cover their premises cost, let alone make a profit. However, a spot amongst the World's famous parade of shops is considered important for the purpose of advertisement and prestige. Having branch presence for a bank in a town negates the need for a Billboard, the branch itself is the poster. It saves the rent and/or commission for installing ATMs. It serves as an outlet in dealing with customers affected by fraud and verifying their identity. A branch fulfils numerous valuable functions and most importantly reassures customers of its presence in times of a downturn. Therefore, a full analysis must be conducted before deciding which real estate assets to keep open. Also, a branch must attract new Revenue in order to maximise the ROI, therefore, in-branch processes must be optimised to speed up service and customer on-boarding.