How to Choose

Branch network: shrink, maintain, or expand

Foot traffic falls 5-10% per year. Cost pressure high. But cbu.uz biometric requires physical visits for some scenarios.

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When the fork appears

CFO wants cost reduction — branch is major line. CIO digital-first. CMO worries about regional brand presence. cbu.uz biometric mandates make physical visits sometimes mandatory.

Frame criteria

Foot traffic trends per branch.

Customer demographics per region. Older / rural — branch matters. Younger / urban — digital adopted.

Branch productivity. Revenue per advisor / per square metre.

Real estate cost. Tashkent rent vs regional smaller cities.

Competitor presence. If competitors closing — opportunity for consolidation.

cbu.uz biometric scenarios. Some sensitive transactions — physical visit mandatory.

Brand strategy. Regional flagship presence value.

When shrink

Foot traffic <30% capacity for a significant number of locations.

Digital adoption strong (>70% of active customers in app).

Cost pressure significant.

cbu.uz biometric coverage achievable through partnerships (e.g. with post offices) or a few flagship locations.

When maintain

Network is already optimal size.

Customer satisfaction strong on current model.

Regulator expects branch presence per region.

When expand

Underserved region (geographic gap).

Specific use case requires physical (e.g. high-value FX, corporate banking).

Strategic positioning shift to premium / advisory.

Tier strategy (most banks settle on this)

Flagship (large, full-service, advisory) — 5-10% of locations.

Standard (mid-size, mostly advisory) — 30-40%.

Express (small, ATM + identity verification + appointment-based) — 50-60%.

Where decisions usually go wrong

Shrink without alternative for regional / vulnerable customers — backlash.

Expand for marketing reasons without unit economics.

Maintain status quo in a digital-first market — eventually forced shrink.

/en/solutions/banking-branch-modernization-platform/ — branch modernisation
/en/insights/banking-branch-economics/ — branch economics
/en/insights/banking-channel-mix/ — channel mix
/en/insights/banking-biometrics-april-2026/ — biometrics

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