Here are 10 commandments to accelerating success of

your new branch _ Tips

Location! And 9 other things to consider when opening a new branch

It seems as though every our internal report today has an article about branch opening and
performance. Much reported is that banks still open about 1,000 or more new branches annually. In
fact, we opened nearly 253 new branches in the five-year period between 2013 and 2018, according
to RDD records of latest update ,and are preparing our budget to open nearly 80 more next year.

During the year 2012 to 2016 of my career I opened about 160 new branches and learned a great
deal about the factors that drive a successful launch. Taking t h i s opportunity, I want to share some

of my 10 best insights which I call them in short, THE TEN COMMANDMENTS to accelerate SUCCESS OF

NEW BRANCH OPENING.

1. Location. Location. Location.

Anyone who’s ever worked in any capacity of a banker really knows what Location means to the
success of the branch. Without a single doubt, your location and site selection impact your customer
attraction efforts in a big way. We usually prefer retail and business areas, however if it is heavily
trafficked and inaccessible it may not be chosen by the client. Besides, hard corner and first floor
sites tend out to perform less, Selection of highly visible and accessible sites unlike to a saturated
market with a cafe of branches in each side and door of a building make to boost the branch
customer profile in short period.

As economic principle states "supply creates its own demand" Surely, we can mobilize a
significant level of customers if opened in a standalone site but accessible and visible to
customers and if able to make the service pleasant to the customer.
2. Marketing.

Spend some money to marketing the new site; it could be through a soft opening celebration with
recognition of the loyal proxy branch exciting customers for the others new to follow and
establish strategic link right from the outset or any some other type of event to make sure people
know we are open for business. I’m always amazed when we pay 3-5 million for rent a new branch
and zero for marketing it. I think NOW is right time for you to request budget for same for your next
year branch expansion endeavor.

3. On boarding.

When you open a new branch, it will likely outperform the existing branch in a new market that
expands your bank’s footprint. If you build an excellent service team having the experience,
unlike fresh graduates at least temporarily, the quality of the service will influence the client.
The following will serve you this purpose and to attract more.

"A 2 by 2 by 2" s e r v r c e s In the first lew months A "2 by 2 by 2 "imply the

following:
The f i r s t "2” imply two days after a new customer opened a n account, c a l l and
thank him/her for doing business with us.
The Second "2" imply two weeks after follow-up and ensure whether
he/ she has applied for card b a n k i n g , received c h e c k s , a n d o t h e r services. Ensure also
he refers the Bank to two potential c u s t o m e r s .
The third "2" imply two months after the operung of the account, call to
ensure that everything is going smooth and see if there is anything you can help.

4. New customers are critical and the big reason for expansion.

In this connection, the branch shall identify new developments in the target
market, ongoing investment projects, business undertakings and planned national mega
projects in the target market that are likely to bring opportunity for the banking business,
The data, among others, might include new economic infrastructures to be developed
 (such as industrial parks), planned private investments and sector/sub-sector for such
investments, population etc. Hence, the target shall be attracting NEW clients to the bank
unlike account transfer from exciting branch. This is like transferring cash fro me left to
right pocket.
Instead, old customers who closed or inactivate there account due to distance are now
potential new customers for this new market. Invite these customers via telephone, e-
mail or direct personal interview to reactivate their dormant accounts or reopen via
"Back-to-your-Bank" strategic campaign.

5. Will an ATM substitute for a branch?

Consider deploying stand-alone, A TMs as infill points in markets where you have a upright
network. They only require about 2 percent of a branch's operating expenses and can help boost
local sales by as much as 10 percent in their trade area. Make sure you use the same site
characteristics you would for a branch (e.g. highly visible, high traffic area, easy to access site,
etc.). Also make sure cash is well loaded and available 24-hours. The Current trend observed in
all banks is, a branch plus an ATM if a branch isn't nearby, in all likelihood an A TM is . Avoid
placing inside , invisible location.

6. Size of the branch.

Looking for a building to rent, choose wisely. Financial institutions are not "one-size-fits-all."
You may ask yourself what exactly you are looking for in a bank vis-a-vis the survey result
conducted regarding banking prospects and market share and level of the development of the
market. A key observation reveals presence of extra space in our branches beyond the present
and future expansion need. Extra space is extra cost; additionally you have limited usage over
this space.

7. Adequate Staff.

Make sure you have adequate staff on hand from day one. Don't open a branch with under
staffing even if you have limited initial transaction traffic and compromise the service. Your
 service quality in the early months will make a major impact on the ultimate size of the branch.
First impression is ever lasting.

8. Signage.

Wherever you open, make your signage as visible and as the standard as you can get it.
Customers need to find your location. Some districts open with plastic banner with "we are
opened" type of message. That is really unappealing. So plan ahead carefully and consider the
standard branch signage in coordination and collaboration with concerned work unit.

9. Manuals, procedures, guidelines etc.

Any branch would be bound by the procedures outlined in the various policy document of
the bank to ensure consistency of services across the bank. These require the branch to avail
all the necessary manuals, procedures guidelines to all staffs right from the outset and in
doing so enable them to give efficient services. Hence, checklist of the required documents
shall first be established and submit to the branch up on opening at all time.

10. Get staff on board early.

Hire the new branch's staff early and get them into the specific branch talking to local
businesses, language, and culture in order to "pre-sell" accounts. It not only shows that your
branch is committed to the local community but also helps ensure a good business
communication.

There you have it, 10 things to consider before making your new branch operational.

Director, Research and Development Department