Branch transformation 3.0: Construction of regional retail banking's core competence
Released by Deloitte China's Global Financial Services Industry Center of Excellence, this report analyzes the challenges facing branches and presents insights for branch transformation for regional banks.
A branch is the fundamental component of a retail banking business. It is also a microcosm of the bank, reflecting a bank's strategy, management and operational capabilities. With the continuous development of domestic retail banking and the increasing customer demands on branches, regional banks are in an urgent need for a branch transformation to change from a traditional transactional branch network into a retail business unit. The branch transformation for regional banks has now entered into the "branch transformation v3.0" era. Under the premise of overcoming the disadvantages of branch transformation v1.0 and v2.0, banks need a comprehensive upgraded transformation with a true "customer-centered" approach, in order to enhance the performance of the retail business, improve customer satisfaction, lower operation costs and increase operation efficiency.
The transformation is a deep-seated revolution of the branch network based on the bank's overall development strategy, from the view of customer segmentation and target customer positioning. It aims to improve the overall business scale, quality and value, and to enhance the soft power and sustainable competitiveness of branches from three major aspects: institutional process system, team and personnel, and mechanism. In the process of transformation, banks need to design the entire branch transformation blueprint, identify the breakthrough point, develop a collaborative roadmap, and implement the transformation step by step through pilots and promotions. Only through these can regional banks build their retail banking's core competence by fully playing out their advantages: having flexibility in their strategy and being close to the local market and customers.