Planning for Alternative Delivery

by Mercator Advisory Group 0

For most bankers annual budget time is coming up and it’s time to dust off the three year plans and update them for what lies ahead. Overall delivery budgets are changing with new mobile solutions coming to market, and retooling branches for the future is an important issue that requires discussion. Some suggestion on how to approach the review might be in order if you are planning to review your plans for retail, small business, and corporate alternative channel.

Most banks are asking a variant of two questions: How do we decide which technology to deploy, and in what order, to generate the greatest positive impact to our current business model? And, in the future, how do we assess the new technology or functionality as it becomes available?

Creating and maintaining an alternative delivery plan that is aligned with the bank’s strategic goals can help answer both of these questions. Such a plan helps banks address the many factors that influence the allocation of limited investment dollars among a complex array of choices. A problem that can occur is the lines begin to blur between retail, small business and commercial users as customers ask for access to new features and functionality through alternative channels, which puts pressure on current fee structures.

They suggest a four step program:

1. Perform an Information Technology (IT) staff and system assessment against peers and best practices.
2. Conduct a competitive market analysis focusing on alternative delivery offerings for retail, small business and commercial customers.
3. Create detailed strategic technology plans by business line.
4. Develop a combined, prioritized list of initiatives and a timeline aligned with the goals of the individual business lines.

For more information read the article in Banking Strategies:

Featured Content