Branch transformation isn’t just about ambiance. Although the minority, plenty of financial institutions are markedly improving branch channel effectiveness and efficiency by implementing time-tested technology alongside cultural and organizational change.

The first report in this series, Branch Banking in a Multichannel World: What Ever Happened to the "Branch of the Future?", August 2010, detailed the state of North American branch infrastructure along with its likely rate and extent of evolution. The second report, Branch Banking in a Multichannel World, Part II: The Many Faces of Change, February 2011, supplemented the quantitative picture with an analysis of the highly varied ways in which branch channel evolution is taking shape. This report presents multiple case studies in branch channel transformation from North America and Europe. Beyond what was done, these case studies look into how transformation occurred and the results obtained.

“The changing regulatory, economic, social and technological environment has created an imperative for branch channel evolution. Said simply, the branch isn’t dead, just different.” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “The good news is that well-established technologies and operating models are available. Financial institutions don’t have to be on the bleeding edge to transform their branch channel performance."

This report begins with a brief discussion of the “new normal” in retail banking: the factors driving the acceleration of branch channel transformation and their likely persistence. We then present four case studies in incremental branch channel evolution, which is where most financial institutions will start their journey: CRM lite, teller capture, teller cash recycling, and self-service. The report then presents four case studies in more comprehensive branch redesign efforts.