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Branch Banking Still Expanding in 2011?

July 25, 2011

An expansion in branch banking in the state of Massachusetts was recently reported in the July 7th 2011 Mass. Market online article by John Chesto called—Capital One’s expansion in Boston is indicative of bank branches’ surprising  resiliency.
“A spokesman for the Division of Banks tells me there were 2,230 bank branches in  the state as of Dec. 31, 2010. That represents an increase – albeit a tiny one – of 1.4 percent from the 2,199 that were open on Dec. 31, 2009.”

Is this a trend the rest of the country is seeing?  With 2010 being the first year the FDIC reported a decline in the number of branches in the United States, maybe 2010 will just be a blip on the radar.  Will technology ever halt the growth of branches in this country?

Before building your next branch you should complete a comprehensive analysis of the effectiveness of your branch network.

The FMSI HOA process compares branch teller transaction traffic patterns, by time of day and day of week, to current hours of operation.  After making this comparison, FMSI determines recommendations, if any, on adjustments to hours of operation.  Bringing the retail hours of operation of each branch in-line with historic consumer traffic patterns leads to an average savings of $11,000 per branch per year.

How does the process work?

FMSI collects various data sets from the financial institution’s core processor and runs them through the proprietary FMSI Hours of Operation Analysis model.

Based on the proposed weekly hours of operation, FMSI calculates resulting productivity, unit labor cost, and potential total labor cost savings.

Please contact us to learn more about FMSI’s Hours of Operation Analysis.

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