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Banks, like many organizations with multiple offices and functions, are organized in two ways:
The functions that need to be close to the customers are decentralized, and are organized in separate branch offices.
The functions that don’t need to be close to the customers are centralized, and are performed in a few central offices.
As there is a perceived economies-of-scale, whenever possible, the organizations prefer to use the centralized model. 
However, there are some hidden costs with this approach, and some opportunities can be missed as a result. 
This paper questions this conventional wisdom, and proposes some new, out of the box ideas for organizations. 


Over the past ten years, banks have deployed a wealth of new branch technologies and retail marketing initiatives to increase revenues, reduce operational costs, and improve customer service.  Yet most banks find it too difficult to tell whether these efforts are producing significant results.  To understand what really does work, and why, growth-oriented banks are turning to process improvement methodologies like Six Sigma to guide their retail banking strategies.  These banks are enjoying significant increases in both earnings and customer satisfaction ratings.  


November 2012: Branch Data Collection
“You cannot manage what you don’t measure” is a fundamental scientific management principle. In terms of the retail banking, you need to measure in order to assess branch performance, cost, what works and what does not. 
Some of the decisions that require branch measurement include: ...




October 2012: Fallacies of Queuing
Since early 2000s, as the drive to scientifically manage the branches spread in the banking industry, queuing theory became a common methodology to determine the branch staff levels. However, as the real life does not fit to the queuing paradigm, ...



September 2012: Forecasting Accuracy
Why it is important and how to accomplish it? 
Forecasting of the transaction and sales volumes is the first step of the branch capacity planning. 
The results, along with the activity standard times, are...