Branch network modernisation

Context

Universal bank UZ with 65 branches across regions. Foot traffic decline 8% YoY. Cost ratio increasing. Strategic question — close, modernise, or maintain.

Diagnostic (6 weeks)

Per-branch analysis:

• 25% of branches at <30% capacity utilisation.
• 40% standard productivity, room for advisor model.
• 15% flagship — high-value customer destination.
• 20% strategic regional presence (low traffic but brand value).

Customer interviews: 70% perform routine transactions digitally, but advisory / complex — branch needed.

Approach (14 months)

Months 1-3. Strategy design. Tier framework: Flagship / Standard / Express. Per-branch assignment.

Months 3-7. Tier transitions. Express conversion first (smaller branches without advisor cost), Flagship investment in second wave, Standard updates in parallel.

Months 7-10. Operating model. Staff retraining: tellers → advisors / specialists. Compensation tied to customer outcomes.

Months 10-14. Closure of 8 branches with lowest viability + opening 2 new in underserved regions.

Results

After 14 months:

• Branch count: 65 → 59 (net 6 closure after opening 2).
• Cost per transaction: −34%.
• NPS in retained branch users: +15 points.
• Cross-sell ratio in branch interactions: +28%.
• Advisor productivity: 2.4x revenue per advisor.
• Real estate optimisation: $1.2M annual savings.

What is critical

Customer-centric branch closure — alternative coverage mandatory.

Staff communication transparent — affected staff retrained or relocated.

Tier strategy gradual — no disruption.

Regional regulator engagement — some closures political.

Related

• /en/solutions/banking-branch-modernization-platform/ — branch platform
• /en/decisions/banking-branch-network-future/ — branch decision
• /en/insights/banking-branch-economics/ — branch economics
• /en/insights/banking-channel-mix/ — channel mix