The way customers use banking services has changed significantly, but location still matters. Digital banking may have reduced the number of everyday transactions taking place in branches, yet banks still need to understand where their customers are, how accessible their physical services are and where there may be gaps in provision.
For banks managing a network of branches, ATMs or other customer-facing locations, Location Intelligence can bring together customer, demographic, competitor and movement data to provide a clearer picture of how different areas are being served.
Here are four ways it can support better decisions.
1. Understand where your customers are
Knowing where customers live in relation to existing locations can reveal how effectively a branch network serves its customer base.
Mapping anonymised customer data makes it possible to understand the size and shape of branch catchments, see how far people travel and identify areas where customers may be using locations differently from expected. Some branches may predominantly serve their immediate neighbourhood, while others draw customers from a much wider area because of transport connections, surrounding amenities or the services they provide.
Adding demographic and consumer data provides further context. Different areas can have very different populations and requirements, so understanding the people within each catchment can help banks make more informed decisions about how their physical network supports them.
2. Identify gaps in the network
A map showing existing branches and ATMs is useful, but it becomes much more informative when you add customer and market data.
There may be areas with a significant concentration of customers but relatively limited access to existing facilities. Elsewhere, several locations may have overlapping catchments and serve many of the same people. Location Intelligence allows these relationships to be viewed geographically and considered alongside population, demographics, accessibility and other relevant factors.
This can help banks identify areas that warrant further investigation, whether that means reviewing the role of an existing branch, considering alternative provision or understanding where there may be an opportunity to improve access to services.
3. Understand how locations are being used
Not every banking location plays the same role.
A city-centre branch may serve commuters and workers as well as local residents, while a suburban location could depend much more heavily on the surrounding residential population. Footfall and movement patterns can help reveal these differences by showing how people use an area at different times of day and on different days of the week.
Accessibility also matters. Public transport, road networks, parking and journey times can all influence which location a customer chooses to visit.
Looking at these factors together can provide useful context when comparing branch performance. Rather than judging a location purely on transaction numbers or customer volumes, banks can better understand the environment in which it operates and the potential market it serves.
4. Support decisions about the future network
Location Intelligence can also help banks plan how their physical networks need to evolve.
When considering a new location, relocation or changes to an existing estate, the decision involves more than simply looking at current customer numbers. Banks need to consider how changes could affect surrounding locations, whether catchments overlap, how accessible alternative services are and how customer demand is distributed across an area.
It can also be useful for scenario planning. If one location were changed or removed, where would its customers be likely to go? Which neighbouring branches could see additional demand? Are there customers for whom the next nearest location would be considerably less convenient?
Looking at the network as a whole can help businesses understand the potential consequences of a decision before making it.
Location still matters in banking
The role of the bank branch has changed, but geography hasn’t stopped influencing how customers access services.
The challenge is to understand what each location contributes, who it serves and how it fits within the wider network. Customer data alone provides part of that picture. Demographics, accessibility, movement patterns and the location of other services add the context needed to understand it properly.
Periscope® brings these different sources of location data together, helping organisations analyse catchments, compare locations and make more informed decisions about their physical networks.
See how Periscope® can help you understand your locations and plan your network with greater confidence.
