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Market Screening
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MACRO-TO-MICRO APPROACH
GRFI's Market Screening allows organizations to prioritize
markets and larger geographies prior to the involvement
in site details. This Macro-to-Micro approach to
retail branch distribution planning allows the
financial institution to:
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Identify
and target only high quality/high value
markets FIRST |
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Determine
competitive market penetration levels |
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Quantify
all market development opportunities |
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Determine
a Strategic "Phased" Market Development
Plan |
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Provide
a solid business plan that is cost justified
with an emphasis on return on investment
for any considered opportunities |
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QUALITY OF THE MARKET VS. QUALITY
OF THE SITE
Any good real estate agent will say that the key
to a good site is Location, Location, Location. Well,
that's partly correct. The most common mistake we
see financial institutions make while selecting sites
is to value the quality of the site with little heed
to the quality of the market. A good or great site
can often bring the organization into a marginal
market. For instance, a city may be planning for
a certain amount of growth or have infrastructure
improvement proposals in their own budgets which
are highly publicized and that may or may not come
to pass.
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"A
GREAT DEAL"
Sometimes the colleague/customer of the financial
institution that is in the real estate business has
a "Great Deal" or a "Steal" on
a given property. These "Steals" rarely
work to the actual benefit of the institution. Keep
in mind that while the cost of the "Class A" property
may be moderately expensive to very expensive, this
cost will pale in comparison to the ongoing operating
costs of the new facility. Better to be sure that
the organization is serving the right market first,
and that the market-site has the ability to pay off
for the sizable capital investment made.
Call GRFI/The Frerichs Group for more information
on how market screening can help select the best
profit-planning new branch location for your financial
institution. 888-856-5161 |
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