Wednesday, February 23, 2011

BranchInfo 2011 Released With Major Enhancements

The new BranchInfo update is now available, and includes locations and ownership as of January 2011 and deposit balances as of June 30, 2010.   As always, it includes years of deposit history trends, mergers and acquisitions, closures and consolidations, dates opened, facility type, and more.  For this release, we have improved the geocoding even further for previously hard-to-match locations.   

But best of all, we have added a lot of new value. And how did we do that?  Well, with geoprocessing, of course!   We measured the relationship of branches to each other and to market potential, and added that back to the branch layer.

The result is that BranchInfo 2011 now contains additional metrics that are useful for quickly evaluating a branch's - and an entire network's - market potential and competitive environment.  This includes the addition of many new variables, including deposit potential, loan potential and investment potential; and the degree of competition in terms of branch density and concentration.

How can we use the new data?  We can relate deposit performance to the degree of competition and the amount of market potential, and analyze that in terms of all other branch characteristics; and do so both from within BranchInfo (like facility type, date opened and ownership changes) and among primary branch site and location characteristics like signage, business compatibility, parking and access.  Just click on these links if you missed our 101 lecture on this, Blind To Site I and Blind To Site II.

And that is key to placing resources where they will do the most good.  So you can dominate where deposit performance and potential are high and competition low; target where deposit performance is lacking but potential is clear and competition not overwhelming; maintain where deposits are OK but potential is weak and/or there’s too much competition chasing too few dollars; and just plain avoid everything else.

We’ll be sharing a lot more about the new BranchInfo 2011, and how banks are using it, in the coming weeks.

Add: Speaking of sharing, BranchInfo 2011 also includes the share of deposits among branches within one mile for each branch we could accurately estimate, which is the vast majority of all U.S. branches in the 50 states.

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