Many are sounding the death knell for the retail banking branch but it remains the key channel in the banking delivery mix. That’s according to a new report by RBR, entitled Branch Banking II: Case studies for the next generation.

This shows that the continuing strategic role of the branch has been recognised by the many banks that continue to invest in this area. Certain banks stand out for their longstanding commitment to the development of cutting edge branches. Case studies of long-term branch innovators profiled in the new research include Barclays in the UK and ING Group in the Netherlands. Some banks, such as Jyske Bank in Denmark and CUA in Australia, have more recently made strategic decisions to invest in branches in order to differentiate themselves in crowded, competitive, retail banking environments. Newer banks are also investing heavily in their branch networks. For example ICICI Bank is making a push in the rapidly expanding Indian retail banking market. ICICI Bank, also profiled in the new research, is held up as a good example of how self-service can be deployed to support a branch-led strategy.

While most banks operate a universal customer strategy – where all branches are aimed at all customers – some are pursuing a more segmented approach, for at least a share of their outlets. Dedicated branches, or zones, focus on specific customer segments, as a way of convincing specific customers that they are focused on their requirements. An interesting example of this is UniCredit Bulbank in Bulgaria which has spotted a need to accommodate an increasingly powerful and financially savvy women’s sector. The bank has opened a dedicated women’s branch and separate zones within other branches, all with their own distinct branding.

Deutsche Bank is well known for its targeting of premium customers. Its recent acquisition of Postbank extends this segmental approach, but this time using a branch-led multi-channel strategy to attract the mass market. Some of the most interesting examples of customer segmentation are DBS and OCBC in Singapore. Both banks have bold initiatives to attract the increasingly critical younger generations of customers. Such initiatives are not limited to Singapore however, as, in addition to DBS and OCBC, the report presents a case study of the work Standard Bank in South Africa has carried out to target young people.

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