There is no doubt that over the next five-ten years, branches will undergo substantial changes. Some experts believe that most branches will NEVER again return to profitability on a stand-alone basis. While banks need to develop new distribution models and alternative channels, they also need to continue to consider how to gain as much profit as possible from branches TODAY. In many cases, we see undermanaged branch systems in which the organization structure is not designed for success, and the staff needs to be upgraded to improve results.

The attached article that Ric Carey and I wrote for Banking Strategies discusses some of the practical steps that banks can take in the near term to improve branch performance and make sure that branch personnel are fully engaged with customers. Too often, management relies too heavily on technology rather than more fundamental and effective actions.