BIRMINGHAM, Ala.--()--Bancography, a financial services consulting firm, today announced that its Bancography Plan now offers the ability to forecast the impact of possible branch closures.

Bancography Plan is a market analysis and branch planning tool, enabling bankers to evaluate the performance and profitability of new and existing branches.

The new function forecasts the potential impact ‒ in terms of account and balance runoff ‒ of possible branch closures. The analysis forecasts the likelihood of retaining versus losing accounts as a function of each account’s distance to the institution’s nearest surviving branch, and of the population density in that branch’s trade area. After the institution uploads an account file for the potentially impacted branch, Bancography Plan will generate the following reports to assist in evaluating the impact of branch closure:

  • Distance to closing branch, or the number of accounts and total deposits within each mile band of the branch under consideration for closure;
  • Distance to closest surviving branch, or mileage bands for how far each account would be from the institution’s closest remaining branch;
  • Closest surviving branch, or the top branches likely to receive the customers from the closed branch; and
  • Forecasted runoff, using the distance-density function described above to calculate runoff likelihood for each account, and aggregating those totals to yield estimates in accounts and dollars for total runoff.

“Determining whether to close a branch can be as critical as determining where and when to open a new branch – and it is not a decision that should be made based on vibes,” said Steve Reider, president of Bancography. “The closure analysis feature enables bank and credit union executives to make these critical decisions with the support of quantitative data, empowering institutions to better align their physical network with their strategic priorities.”

Click here for an overview of Bancography Plan.

Bancography recently published its Bancology Winter 2024 Newsletter, with deposit and branching trends and guidance for financial modeling for branch relocations. The full newsletter is available for download here.

About Bancography

Bancography provides branch planning solutions and primary marketing research for financial institutions across the U.S. Bancography offers custom branch network optimization services in addition to Bancography Plan, our market analysis and branch planning software tool. Bancography’s Branch Network Optimization service provides a market-wide assessment of any region to deliver a long-term plan for branch openings, closings, relocations and acquisitions. Our branch planning projects have addressed every region in the U.S. In support of our clients’ current operations, Bancography performs primary marketing research to measure customer experience and brand awareness.

For more information, visit bancography.com, connect with us on LinkedIn or contact info@bancography.com.