The Problem

Since the credit crisis of 2008 commercial banks continue to navigate lingering industry challenges.

Efficiency initiatives remain a top priority for bank management teams considering elevated regulatory compliance costs. Another challenge facing banks is the ongoing costs associated with maintaining expensive brick & mortar branch networks.

Advancements in technology have resulted in new retail bank customer behavior patterns. With technological innovations, the need to conduct routine business in a bank branch has declined considerably. Statistics reveal branch foot traffic is and has been declining by 10%, on average year over year.

The Options

Banks currently have two options to address efficiency around their retail networks: close existing branches, or reduce staffing levels.

Unfortunately challenges exist for both options. Since banking is a regulated industry, it is difficult to close a bank branch. Also, a bank loses market visibility when it closes a branch location.

Reducing staffing levels can help reduce some costs; however, understaffed and empty branches create other challenges for banks and their customers.

"The conundrum facing most banks the world over is that even as their customers make less use of branches for everyday transactions banks have yet to find an equally good way of drawing in new customers and doing more lucrative business with existing ones."
− The Economist

"If banks respond to the increasing branch operating costs by closing branches, they are completely eliminating the chance for the all-important account-holder 'face-time’, an element of service that mobile and online banking are already taking away."
− FMSI

The Solution

NPC’s core values are based on restoring order to a chaotic environment. NPC helps institutions optimize their branch networks by reducing operating footprints while growing new client acquisition opportunities with increased branch foot traffic.