A bank with 5 branches offering home loans centralized the lending operation to the main branch, resulting in a drastic drop in loan takers. What should the bank do?

Question

Accepted Answer

Centralizing loan operations led to a drop in customers; the bank needs to reassess its strategy to regain clientele.

Reevaluate the centralization decision: Consider the benefits of local branches in customer service and accessibility.
Implement a hybrid model: Allow branches to handle certain aspects of loan processing while centralizing complex tasks.
Enhance digital services: Invest in online platforms to streamline the loan application process, making it more accessible.
Gather customer feedback: Conduct surveys to understand why customers prefer local branches and address their concerns.
Increase marketing efforts: Promote the centralized services effectively to attract new customers and retain existing ones.

A bank with 5 branches offering home loans centralized the lending operation to the main branch, resulting in a drastic drop in loan takers. What should the bank do?

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