{"id":632082,"date":"2023-11-07T06:03:44","date_gmt":"2023-11-07T14:03:44","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&p=632082"},"modified":"2024-02-14T06:44:37","modified_gmt":"2024-02-14T14:44:37","slug":"diebold-nixdorf-banking-transition","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/diebold-nixdorf-banking-transition","title":{"rendered":"Advising an Industry in Transition"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","transcript_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[477032,581,471991,238001],"department":[476812],"wherenext-category":[],"industry":[],"class_list":["post-632082","wherenext","type-wherenext","status-publish","format-standard","hentry","tag-customer-analysis","tag-digital-transformation","tag-market-analysis","tag-site-selection","department-business-growth"],"acf":{"short_description":"Location analytics helps these consultants guide financial institutions toward what consumers want, where they want it.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"As consumers change everything from how they spend money to where they deposit it, an old law of banking\u2014build a branch and they will come\u2014is breaking down. In a sign of the shifting times, over 40 percent of core retail banking sales in 2021<\/a> were digital in nature, according to a McKinsey survey. To cope, financial institutions (FIs) are deploying advanced ATMs, self-service banking kiosks, and online services."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"Article snapshot:<\/strong> A strategic adviser to the banking industry enlists location analysis to guide financial institutions to the right customers.","snippet":""},{"acf_fc_layout":"content","content":"Many FIs are turning to consultants to analyze banking preferences in specific markets and determine the best mix of touchpoints for clients\u2019 needs. Longtime ATM manufacturer Diebold Nixdorf has parlayed years of experience with FIs into an Advisory Services group that guides branch transformations.\r\n\r\nDiebold Nixdorf advisers use geographic information system (GIS) technology<\/a> to analyze local financial habits and shape the bank networks of tomorrow.\r\n\r\n\u201cWe get really granular on our recommendations, and the deeper we get, the more we use the spatial component<\/a>,\u201d says Scott Weston, global adviser for banking channel transformation at Diebold Nixdorf.\r\n\r\nBy analyzing demographics, technology preferences, bank transactions, real estate data, retail indicators, and other metrics, Diebold Nixdorf consultants help FI leaders reimagine expansion or consolidation plans, sometimes in surprising ways.\r\n\r\n\u201cLocation and what you\u2019re trying to do strategically becomes very, very important to help drive revenue and do it efficiently,\u201d says Simon Powley, head of Diebold Nixdorf\u2019s Advisory Services team."},{"acf_fc_layout":"quote","image":632062,"text":"If you think about what we do, we can't do this without a GIS. It's just not possible.","author_name":"Scott Weston, Diebold Nixdorf","author_profession_organization":""},{"acf_fc_layout":"content","content":"

A Location-Based Approach to Banking Optimization<\/strong><\/h3>\r\nBuilding a new bank branch can be a multimillion-dollar proposition. Location analytics might reveal that a strategically deployed mix of ATMs could accomplish the same goal for a much smaller price tag. If a new branch location is the most effective move, Diebold Nixdorf\u2019s Advisory Services staff can steer banking executives to neighborhoods that will be the best fit based on population, age, spending, and other factors.\r\n\r\n\u201cThey picked towns within counties that would be in line with what our long-term strategic plan is,\u201d says Jackie Hoonjan, president and CEO of Pacific Cascade Credit Union, a client of Diebold Nixdorf\u2019s based in Eugene, Oregon.\r\n\r\nUsing location analysis, the consultants recommended nine towns where new branches or ATMs could help Pacific Cascade reach members. Seeing the data on maps helped win over the company\u2019s board of directors.\r\n\r\n\u201cWe were kind of wowed with the numbers that they gave us, with the details that they gave us,\u201d Hoonjan says.\r\n\r\nThe Diebold Nixdorf team recently worked with a financial institution in Jacksonville, Florida, that was planning branches to fill gaps in market coverage. Weston\u2019s GIS analysis indicated that adding 15 to 20 off-premises ATMs could cover 85 percent of area households, while bolstering the FI\u2019s visibility in the area.\r\n\r\n\u201cBy leveraging this kind of mapping technology<\/a>, we can help [FIs] decide the best place to run a pilot or where you are going to be more successful,\u201d Powley says. \u201cWe\u2019re not a one-size-fits-all shop. And that\u2019s where our analysis and data capabilities really come into place.\u201d"},{"acf_fc_layout":"quote","image":632072,"text":"For the C-suite, I would say a map or a visual piece is 10 times more important than a PowerPoint slide with words on it, because they want to see and feel and touch it, and it becomes real life to them.","author_name":"Simon Powley, Diebold Nixdorf","author_profession_organization":""},{"acf_fc_layout":"content","content":"

Right Number, Right Location, Right Technology<\/strong><\/h3>\r\nWhen Weston, fellow consultant Marilyn Howe, and their Advisory Services colleagues analyze data to optimize a branch and ATM network, they\u2019re looking at the interplay of three factors: the right number of touchpoints, the right locations, and the technological proficiency of users in the area.\r\n\r\n\u201cWe are looking to understand how customers are leveraging various channels and what that tells us about their preferred engagement with their financial institution,\u201d says Howe, a senior manager in Advisory Services. \u201cWe\u2019re always looking at consumer behaviors through the technology-usage lens, which is different from the traditional consulting perspective.\u201d\r\n\r\nTo determine the best locations, Howe and other Diebold Nixdorf consultants use GIS to analyze banking and shopping activity across neighborhoods. A hot spot analysis might highlight areas with high or low deposits. Metrics like borrowing capacity and spending enhance the view.\r\n\r\nFinally, Diebold Nixdorf advisers add data that reveals local consumer comfort with online banking or ATMs. \u201cWe\u2019ll use consumer insight surveys blended with demographic data<\/a> to understand pockets of opportunity within the market,\u201d Howe explains.\r\n\r\nIn the case of Pacific Cascade Credit Union, Diebold Nixdorf\u2019s analysis helped Hoonjan push past generalizations. In Roseburg, Oregon, where the CEO is finalizing on one of the suggested properties, Howe found that 40 percent of members were younger individuals and families, suggesting a familiarity with technology. But Hoonjan has also found that young people still enjoy the human touch of a physical bank. Location analysis can help leaders fine-tune decisions that strike the right balance.\r\n\r\n\u201cThe research part of it was showing [that] with all the statistics and the demographics of that area . . . we would pick up the membership that falls in line with what Pacific Cascade is all about,\u201d Hoonjan says."},{"acf_fc_layout":"quote","image":632052,"text":"In the organizations we work with, I'm seeing that C-level leaders really find value in the complex data analysis we provide. Many of them have never had a GIS specialist on their team providing the spatial perspective.","author_name":"Marilyn Howe, Diebold Nixdorf","author_profession_organization":""},{"acf_fc_layout":"content","content":"

A Granular View of Banking Markets<\/strong><\/h3>\r\nRather than relying on general market trends, Diebold Nixdorf advisers like Howe and Weston root their recommendations in a bank\u2019s own data\u2014and the results can sometimes come as a surprise.\r\n\r\nOne credit union in San Jose wanted to identify which members might be at risk for attrition as the firm looked to consolidate branches. The organization\u2019s leaders, who expected to lose hundreds or even thousands of clients, were shocked at Diebold Nixdorf\u2019s GIS-backed projection that only 80 or 90 members might be at high risk of attrition at one location. In the end, the results confirmed the GIS analysis.\r\n\r\nWhen trends like branch transformation disrupt industry norms, executives need guidance tailored to their unique markets, clientele, and strategic goals. Diebold Nixdorf\u2019s approach, informed by location analytics, reflects the reality that not all customers are the same, nor do they all want to bank in the same way. Taking a geographic approach<\/a> to data is one key to that granular view."}],"references":null},"yoast_head":"\nIn Transition, a Banking Industry Turns to Analytics<\/title>\n<meta name=\"description\" content=\"As brick-and-mortar and online habits evolve, banking executives are using advanced analytics to understand customer paths.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/diebold-nixdorf-banking-transition\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Advising an Industry in Transition\" \/>\n<meta property=\"og:description\" content=\"As brick-and-mortar and online habits evolve, banking executives are using advanced analytics to understand customer paths.\" \/>\n<meta property=\"og:url\" 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