Course Overview
This course explores the “world-class” approaches of leading banks to organising & managing their branch networks, and how delegates' banks could emulate them to boost profitable growth:
- To provide a comprehensive review of modern branch network strategies
- To assess alternative branch network marketing strategies
- To explore how leading banks boost selling and upgrade credit risk management across their branch networks
- To examine modern approaches to organising, planning and controlling branch networks
- To practise the use of a range of analytical methodologies which are key to managing branch networks successfully
- To assess ways that delegates’ banks could upgrade their own approaches to branch network management in order to increase market shares, profits and profitability
Benefits of the Course: What Delegates Will Take Away
This 5-day, general management level course will help delegates to:
- Understand how to formulate branch network strategy for generating higher profits
- Segment the banking and financial services markets in which their networks are active
- Develop successful network marketing strategies and guide their practical implementation
- Reorganise their banks in a way that supports branch network management
- Restructure their branch networks to improve selling, customer service and profitability
- Refocus branch planning, budgeting and control systems on to marketing priorities
- Calculate correctly the profitability of products, customers, segments and branches
- Set priorities for upgrading branch network strategy and management in their banks
Methodology
The course is intensive, participative and delivered in English. Various methods are used:
- Formal presentations, including many real case histories, with discussions
- Case studies and “question and answer" plenary discussion sessions
- Discussion group sessions followed by presentations developed by delegates
To ensure that discussions at the course are specific to the banks represented at it, delegates will be invited before the course to provide information about their bank’s organisation structure and deployment of their workforces to the course director. This will permit discussion at the course about how the organisation structures and use of time in delegates’ banks and networks could be made more effective. This, in turn, will give delegates specific recommendations they can make to their colleagues after they return to their banks.
Learning Level
This is an advanced course for senior bankers who need to advance the organization structure and management of their branch networks with the aim of increasing market share and profitability.
Who Should Attend
This course is for the top executives of banks, senior managers who are expected to reach this level soon, and those who support directly the top management teams of their banks:
- Executive chairmen, CEO’s, and members of boards and top executive committees
- General managers, executive vice presidents, executive directors responsible for "profit centre" divisions and subsidiary companies involved in:
- Branch network management
- Personal (“retail” or “consumer”), premium and private banking
- SME, commercial and corporate banking
- Other financial services such as investment and insurance
- Senior executives responsible for support divisions, including those involved in:
- Strategy, planning and financial control
- Marketing and sales support
- Credit and other types of risk management
- Human resources and information technology management
Day One
THEME 1: STRATEGIES FOR BANKS AND THEIR BRANCH NETWORKS
Introduction and Overview
- Programme Overview: Themes and Topics
- Introduction of Delegates
Presentation: Strategies for Increasing Branch Network & Bank Profitability
- Setting Priorities Across Market Segments, Products, Services and Locations
- Fixing Service Quality Levels, Pricing Policy and Branding Strategy
- Focusing Selling on to the Best Customers and Business
- Harmonising Strategies for Marketing, Credit and Asset & Liability Structure
- Adjusting Organisation Structure to Reflect Network Marketing Priorities
- Reengineering Network Processes and Operations
- Reassigning Personnel to Sales & Service
- Exploiting Information Technology Across Branch Networks
Coffee Break
Group Work: Phases in the Evolution of Branch Networks
- Marketing Focus and Selling Intensity
- Credit Management
- Network Organisation Structure and HR Management
- Operations
- Planning, Budgeting & Control
Lunch Break
THEME 2: FOCUSING BRANCH NETWORK MARKETING
Presentation: World-Class Standards and Examples of Personal Banking
- Main Strategic Elements of Personal Banking
- Most Attractive Sub-Segments of Retail, Premium and Private Banking
- Best-Practice Management Functions: Marketing, Selling, Credit and Operations
- World-Class Standards of Personal Banking
- Discussion About Improvement Possibilities at Delegates’ Banks
Coffee Break
Presentation: Market Segmentation in Branch Banking
- Nature of Market Segmentation in Branch Banking
- The Need for Clear Market Segmentation
- Formulating Branch Market Segment Strategies
- Organising Banks and Networks to Serve Priority Market Segments
Group Work: Segmenting the Markets of Delegates’ Banks
- Choosing and Defining Market Segments and Sub-Segments
- Estimating the Sizes and Contributions of Market Segments
- Technical and Political Barriers to Market Segmentation
- Practical Steps in Segmenting a Bank’s Whole Customer Base
- Training Bank Personnel and Customers About Segmentation
Close of Day Summary
Day 2
Presentation: Case Histories – ‘Winning’ Branch Network Marketing Strategies
- Methodology for Deciding Marketing Priorities
- Case History: Setting Marketing Priorities Across All Businesses
- Case History: Formulating Retail Banking Marketing Priorities
- Case History: Fixing International Development Priorities
- Important Practical Lessons from the Case Histories
Coffee Break
Case Study: Formulating a ‘Winning’ Network Marketing Strategy
- Choosing Which Mutually-Exclusive Market Segments to Use
- Assessing the Attractiveness of the Different Market Segments
- Assessing the Bank’s Competitive Strength in Each Market Segment
- Setting Priorities Among the Market Segments
- Developing Action Plans
Case Answers: Formulating a “Winning” Network Marketing Strategy
- Strategic Development Priorities
- Priority Tasks and Action Plans
- Implementation Timetable
THEME 3: INTENSIFYING SELLING ACROSS BRANCH NETWORKS
Presentation: Modern Sales Channels for Branch Networks
- Segmented Branches
- Point-of-Sale (POS) Offices
- Mobile or Direct Sales Forces
- Outbound Call Centres
- Direct Mailing
- Campaign Management
Lunch Break
Presentation: Case History - How One Bank Intensified Network Selling
- The Meaning of “Selling” and the Importance of Increasing Selling Time
- The Link Between Selling Time, Cross-Selling Success and Profitability
- The Case History Bank Before Reengineering
- The Case History Bank After Reengineering
- Specific Jobs Removed and Added
- Impact of Changes on the Bank’s Performance
Coffee Break
Group Work: Intensifying Selling Across Delegates’ Branch Networks
- Creating New Types of Selling Job
- Increasing Existing Types of Selling Job
- Moving Staff Into Income-Generating Jobs and the Retraining Needed
- Increasing the Time Spent Selling in All Selling Jobs
- Managing Major Sales-Intensification Programmes
Close of Day Summary
Day 3
THEME 4: WORLD-CLASS CREDIT MANAGEMENT IN BRANCH BANKS
Presentation: World-Class Credit Risk Management in Branch Banks
- The 250 Elements of Credit Risk Management
- World-Class Standards of Credit Risk Management
- Case Histories: How Some Banks Became World-Class at Credit Management
- Discussion: Advancing Credit Policy and Processes in Delegates’ Banks
Coffee Break
Group Work: Characteristics for Assessing Personal Credit Risk
- Financial Characteristics of Retail Borrowers
- Non-Financial Characteristics of Retail Borrowers
- Choosing the Best Combination of Characteristics for Assessing Risk
Presentation: Credit Scoring for Modern Branch Network Banks
- Nature of Credit Scoring Schemes
- Steps in Developing a Credit Scoring Scheme
- Uses of Credit Scoring Schemes
- Practical Problems and Solutions
Lunch Break
Case Study: Target-ROE Risk-Adjusted Pricing of Loans – “TRAP”
- Explanation of Target-ROE Risk-Adjusted Pricing of Loans
- Calculating Margins Needed to Meet the Bank’s Target Return on Equity
- Estimating Margins to Cover Funding and Opportunity Costs
- Building in Margins to Pay for Credit Operating Costs
- Calculating Margins Needed to Cover Bad Debts
- Adjusting Margins to Exploit Competitive Dominance
Case Answers: Target-ROE Risk-Adjusted Pricing of Loans
- Loans to Accept With More Cross-Selling
- Loans to Accept if Bad Debts Can be Reduced
- Loans to Accept if Operating Costs Can be Cut
- Loans to Reject
Coffee Break
THEME 5: ORGANISING MODERN BRANCH NETWORKS
Presentation: Best-Practices in SME Banking
- Main Strategic Elements of SME Banking
- Marketing to the Best SME Sub-Segments
- Selling & Cross-Selling to SME’s
- SME Credit Risk Management
- Organising to Grow SME Business Fast & Profitably
- Planning & Controlling SME Business
Close of Day Summary
Day 4
Presentation: Reorganising Banks and Their Branch Networks
- Design Principles for Bank and Network Organisation Structures
- Organisational Options for Progressive Banks:
- Territorial and Product Structures
- Segment Structures
- Functional Structures
- Choosing the Best Organisation Structure for Branch Networks
Coffee Break
Case Study: Reengineering Networks for Marketing, Sales and Quality
- Adjusting Service Quality Levels for Each Market Segment
- Improving the Ratio of Front to Back Office Staff Across the Network
- Boosting Branch Selling Intensity
- Establishing Special Branches for Key Market Segments
- Adjusting the Role and Size of Head Office
Case Answers: Reengineering Networks for Marketing, Sales and Quality
- Alternative Strategies for the Branch Network
- Option 1: Refocusing the Branch Network and Down-Sizing the Bank
- Option 2: Refocusing the Branch Network and Expanding the Customer Base
- Comparison and Evaluation of the Strategic Options
Lunch Break
Presentation: Best-Practice Relationship Management of Key Customers
- The Objectives of Best-Practice Relationship Management
- Choosing Key Customers
- Organising Relationship Teams
- Focusing Relationship Managers on to Sales & Service
- Planning & Controlling Relationships
- Assessing & Training Relationship Managers
- The “12 Rules” of Best-Practice Relationship Management
Coffee Break
THEME 6: PLANNING & CONTROLLING BRANCH NETWORKS
Presentation: World-Class Branch Planning, Budgeting & Control
- Effective Approaches to Market-Focused Strategic Planning
- Using Action Planning in Implementing Network Marketing Strategies
- Segmented Key Performance Indicators and Budgeting
- Segmented Financial Control Reporting
- Measuring & Rewarding Branch Performance
Group Work: Choosing Key Performance Targets for Branch & Relationship Managers
- KPT’s for Branch & Relationship Managers
- Deciding the Relative Importance of KPT’s
- 52 Examples of KPT’s Commonly-Used by Leading Branch Banks
Close of Day Summary
Day 5
Presentation: Boosting Retail Banking Profitability:
- Introduction to the Case History Bank
- The Challenge of Achieving High Profitability in Retail Banking
- Best-Practice Calculation of Retail Banking Profitability
- Impact on Profitability of Individual Best-Practices
- Impact on Profitability of Combined Best-Practices
- Priority Actions for Boosting Retail Banking Profitability
Coffee Break
Case Study: Measuring the Profitability of Services, Customers & Branches
- Explanation of Alternative Transfer Rate Systems for Calculating Profitability:
- Traditional Profit & Loss Account Method
- Psychological Methods
- Cost-of-Funds Method
- Single Pool Rate Method
- Dual Pool Rate Method
- Market-to Market Method
- Pros & Cons of Alternative Transfer Rate Systems
- Calculating the True Profitability of Products and Services
- Calculating the True Profitability of Customers and Market Segments
- Calculating the True Profitability of Branches and Branch Networks
- Deciding How to Change Segment and Product Priorities, and Pricing Policy
Lunch Break
Case Answers: Measuring the Profitability of Services, Customers & Branches
- Profitability of Products, Customers, Segments, Branches and ALM
- Choosing the Best Transfer Rate System
- Decisions to be Taken:
- Re-pricing Decisions
- Allocation of Profit to the Correct Units and Managers
Coffee Break
THEME 7: PRIORITIES FOR PROGRESS
Group Work: Priorities for Modernising the Branch Networks of Delegates’ Banks
- Setting Priorities for Upgrading Networks
- Defining the Actions to be Taken
- Proposing Timetables for Moving Ahead
Summary of the Course
Evaluation of the Course
Presentation of Certificates