Friday, April 15, 2011
Common Characteristics of Closed Branches
That's because John Belushi and Dan Ackroyd drove the Bluesmobile through it.
... and out.
What happened to Dixie Square Mall, and to all the other dead malls? RPM has looked into that, with our friends from Edens and Avant. We first presented the results at the 2004 ESRI UC, and they have found their way into the MIT curriculum as an example of how to site a shopping center.
Our real story today is, what makes a bank branch die? What common characteristics can we identify, using geospatial and statistical analysis, and incorporate into our site selection solution to avoid bad, bad mistakes?
RPM has been collecting data on every branch closed this year, from the weekly FDIC feeds designed to update the RPM BranchInfo Branch Locations Performance & Potential database. Analysis of the first quarter 2011 data is underway, and is sure to reveal some of the keys to the kingdom. So, stay tuned.
In the 80's and 90's, we used to say that a bad branch decision was a million dollars bad. Now, depending on the architecture, location and site it may often be a significant multiple of that. This is why a bank's GIS, incorporating internal and external data and a means to distribute analysis and intelligence tying everyone together across disciplines and departments, is one of the most valuable information investments that can be made.