Enhancing branch digital transformation for an Indonesian commercial bank with location analytics
Financial Services
The Results
- Non-performing branches were identified and relocated to locations with the highest concentration of the desired target audience.
- Strategic locations with a richer concentration of high-affluent populations (wealth managers, businesses, and employee personas) without any banking service presence were identified.
- ADA’s Location Planner insights were integrated into the core of the client team’s five-year branch transformation blueprint.
The Challenge
As Indonesia’s banking landscape grew more competitive, the client needed to find their competitive edge to continue growing in times of critical uncertainty.
The client turned to ADA to leverage our data analytics expertise to evaluate several key locations to determine the presence and distribution of Syariah banking competitors. In addition, our heatmap enables our client to optimize the blueprint of their branches for the next five years.
The Strategy
1 Derive insights from XACT, ADA’s proprietary DMP
We were able to draw fundamental information to assess location opportunities for customer profiling: Audience Movement, Area Density, and Competitive Intensity.
2 Identify low / non-penetrated hotspot locations
We identified unpenetrated “hotspots” by using customer and Point of Interest (POI) filters to validate the branch model and identify new locations with minimal competition.
3 Identify underserved hotspot locations
Besides identifying underserved areas for a new branch concept, we also assessed competitive intensity and uncovered underserved hotspots for the right branch mix.
4 Determine whether to retain or relocate branches
Using a heatmap, we determined whether several existing branches should be retained or whether a new branch or relocation would be necessary.
The Execution
1 Regional Location Planner
Split into eight different regions with multiple filters, such as home vs. footfall density, customer segment, age, affluence, and more, to verify customer behavior at a particular location.
2 Commercial Dashboard
The Commercial Dashboard enables the client to choose multiple variables by province and industry type, with color-concentration intensity.
3 Customer ZIP Dashboard
Displays the density of the client’s customers in particular areas based on customer segments such as companies, merchants, and premier customers, along with activity status (dormant vs. active).
Explore More Resources on Commerce Personalization
