TRANSFORMING YOUR
NETWORK
AFTER A MERGER OR ACQUISITION
FIVE FOUNDATIONAL CHALLENGES TO A SUCCESSFUL NETWORK TRANSFORMATION
A merger or acquisition can be a hazardous road to short-term gain and long-term frustration, or a smooth drive to gainful expansion, increased market share, and prosperity.
Merging right requires more than the understanding of legalities and the signing of contracts; it requires a full branch network strategy and transformation.
Financial institutions have to be careful. A merger or acquisition has the potential to push consumers away toward a competitor. In fact, consumers are three times more likely to switch financial service providers when their current provider merges or is acquired by another financial institution.
However, with careful planning, mergers can be a great opportunity for growth and positive change. For these changes to be the most effective, a branch network transformation should encompass the entire network and address five foundational challenges:
- BRAND EQUITY
- THE CONSUMER EXPERIENCE
- RETAIL STRATEGY
- CULTURE TRANSFORMATION
- COMMUNICATIONS
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” CONSUMERS ARE SUSPICIOUS AND WARY OF ANY CHANGE, ESPECIALLY WHEN IT COMES TO THEIR FINANCES.”
“Just changing the name on a building is not only inadequate, but it could damage the organization as a whole – reputation and all.”
WHEN DETERMINING THE VALUE BEHIND EACH BRAND, FINANCIAL INSTITUTIONS AND RETAILERS SHOULD CONSIDER THESE FACTORS:
- Which is the dominant brand in the market?
- Can the two brand histories mesh? In what ways?
- Is the acquisition driven by the gaining of
new markets? - Whose consumers are more willing to try new
products or services? - Whose consumers are more willing to pay a fee
for your products and services? - Who can better leverage distribution channels?