Confronting the Revenue Growth Challenge

Revenue generation in traditional banking comes from the interest rate spread on taking deposits and making loans while collecting fees in the process. With the economy now treading water (or worse), loan growth is hard to find and banks are investing their deposits in low-yielding bonds. Meanwhile, recent regulations have greatly reduced overdraft fees and debit card Read More

By |2020-05-27T18:01:30-05:00August 15th, 2011|Comments Off on Confronting the Revenue Growth Challenge

The Future of Branches: Reinvention

Many industry analysts and practitioners clearly believe the future of retail banking requires a dramatic reduction in the absolute numbers of bank branches across the U.S. In a recent column, banking investor and analyst Tom Brown went as far as to say that “sprawling branch networks are about to become high-cost millstones.” There’s a problem with this Read More

By |2020-05-27T18:01:31-05:00June 24th, 2011|Comments Off on The Future of Branches: Reinvention

Enlisting the Customer in Branch Productivity

Mired in a long-term revenue drought, the retail banking industry now must deal with the reality that the current branch banking model is unsustainable. Along with eroding sales productivity, today’s staff-intensive outlets are sliding in transaction efficiency as well. Between 2003 and 2010, the average U.S. branch experienced a roughly one-third decline in the number of daily Read More

By |2020-05-27T18:01:31-05:00June 20th, 2011|Comments Off on Enlisting the Customer in Branch Productivity

Planning for Delivery Channel Optimization

Channel management is arguably one of the most important functions in today’s banking industry as institutions are caught between the eroding viability of traditional branches and the need to accommodate emerging channels such as mobile. How do banks plan for future changes in customer channel preference while still meeting the needs of today’s customers? We posed that Read More

By |2020-05-27T18:01:32-05:00May 11th, 2011|Comments Off on Planning for Delivery Channel Optimization

The Choice of Banking Green

In 2008, Jon Levey and Steve Sherman, both former LaSalle Bank lenders, and Steve’s father Harold Sherman, a long-time Chicago-area community banker, began pursuing a dream to develop a community bank that would re-shape how banking is done, with an emphasis on environmental sustainability. Despite a tumultuous time in the lending industry, GreenChoice Bank, calling itself the Read More

By |2020-05-27T18:01:32-05:00April 29th, 2011|Comments Off on The Choice of Banking Green

Branch Culture: Farewell to Order-Taking

At a time when roughly 40% of U.S. branches are financially underwater and new regulations are further curtailing revenues, it is painfully clear that banks can no longer count on “free” products and single-shot promotions to drive customer traffic and sales volume. Branches that formerly were organized to efficiently fulfill marketing-generated product orders now must rise to Read More

By |2020-05-27T18:01:33-05:00December 31st, 2010|Comments Off on Branch Culture: Farewell to Order-Taking