Answer & Explanation:Ok, so the topic for this data analysis paper
will be:
Running Head: An Open Data Analysis on specific policy tools and the role of
public administration in reducing welfare caseloads.(welfare caseloads consist of food-stamps, TANF, energy assistance programs, housing assistance programs, daycare assistance programs, etc.)
Please go in depth in this research study…include graphs and charts at the
end to support data analysis. Do extensive research to get your information. I’m also
attaching a sample MSA data analysis research that was approved by the school completed by another student.
You’ll need to follow the outline of this paper, as far as the format goes very closely:
table of contents, chapters, appendixes, cover page, etc. Please remember that
you cannot copy and re-word any content at all or plagiarize, it’s an automatic
FAIL for the class and I will not be able to graduate with my MSA degree,
this is my last class. REMEMBER THESE STEPS:1. Follow the example MSA paper for formatting and required sections 2. Paper must be at least 20 pages long with at least 10 references.3. NO PLAGIARISM (This paper will be put through all plagiarism checkers)4. Include graphs and data analysis charts5. USE CORRECT U.S. ENGLISH FOR EDITING AND GRAMMAR CHECKS PLEASE!1 Good Reference (find at least 9 more):http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6210.2004.00391.x/full
capstone_data_analysis_paper_example.pdf
Unformatted Attachment Preview
ANALYSIS OF IMPACT ON MEMBERSHIP FIGURES DUE TO BRANCH CLOSURES
OF CREDIT UNION ONE
SUBMITTED BY
JUDITH L. DESILETS
EXECUTIVE SUMMARY
The purpose of this research project was to analyze the membership of the branches of
Credit Union ONE that were closed over the past three years, determining what has happened to
these members.
A literature review of journals and trade publications was completed that spoke to the
effects of the economy on financial institutions, the effects of the internet and electronic banking
systems, and the future of brick and mortar establishments.
Secondary data was extracted using an electronic data mining process of historical credit
union files on member statistics before the branches were closed and after the closures so that
comparisons could be statistically calculated.
The most important data collected revealed that although remote services are on the rise,
a large percentage of members still want to be able to come to the traditional branch to conduct
certain transactions. Members want both the remote services and the branch accessibility.
Conclusions made by the researcher were: 1) the branches that were closed were not
needed, 2) the vast majority of members that closed their accounts were non-productive
members, and 3) over 73% of the members were retained from the three branches that closed
which shows loyalty by credit union members.
A recommendation was made to continue to evaluate the current branches to cut and
grow where needed. Also recommended was marketing in several targeted areas where the
opportunity for growth is greatest.
ANALYSIS OF IMPACT ON MEMBERSHIP
FIGURES DUE TO BRANCH
CLOSURES OF CREDIT UNION ONE
MSA 685 Project Report
Submitted in Partial Fulfillment of Requirements
For the Degree of
Master of Science in Administration
(Concentration in Leadership)
By
Judith L. Desilets
Project Instructor
Dr. Susan DuFord
March 30, 2010
Acknowledgements
The researcher would like to thank Gary A. Moody for his visionary leadership and
support throughout this program. You are truly appreciated. The researcher would also like to
thank Dr. Susan DuFord for her guidance, persistence, and genuine spirit as she made the process
of completing the program much more enjoyable. Thank you to Steve Smith, my research guru,
who without his assistance, the researcher would still be trying to sort through the data. Last, but
most importantly the researcher would like to thank her husband and son for their
encouragement, support, patience and helpfulness. Without you I would have given up. I love
you both.
i
Table of Contents
CHAPTER 1: THE PROBLEM DEFINED
Background Statement ……………………………………………………………………………………………1
Problem Statement …………………………………………………………………………………………………1
Purpose of Study ……………………………………………………………………………………………………1
Research Questions ………………………………………………………………………………………………..2
Definition of Terms………………………………………………………………………………………………..2
Limitations of Study ………………………………………………………………………………………………2
CHAPTER 2: LITERATURE REVIEW ……………………………………………………………………………..2
CHAPTER 3: METHODOLOGY
Data Collection Methods ………………………………………………………………………………………14
Data Analysis Methods …………………………………………………………………………………………14
CHAPTER 4: DATA ANALYSIS ……………………………………………………………………………………16
CHAPTER 5: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary …………………………………………………………………………………………………………….34
Conclusions …………………………………………………………………………………………………………36
Recommendations ………………………………………………………………………………………………..37
REFERENCES ………………………………………………………………………………………………………………40
ii
List of Figures
1. Member Count ………………………………………………………………………………………………………….17
2. Gender of Members …………………………………………………………………………………………………..18
3. Age of Members ……………………………………………………………………………………………………….19
4. Branch Usage ……………………………………………………………………………………………………………20
5. Transference to Other Branches…………………………………………………………………………………..22
6. Shared Branching ………………………………………………………………………………………………………23
7. Home Banking Services ……………………………………………………………………………………………..25
8. ATM Usage ………………………………………………………………………………………………………………26
9. Members with Checking Account ……………………………………………………………………………….28
10. Members with Savings Balances …………………………………………………………………………………31
11. Members with Auto Loans …………………………………………………………………………………………33
iii
Chapter 1: The Problem Defined
Background Statement
Research for this study took place at the headquarters of Credit Union ONE, a financial
institution located in Ferndale, Michigan where it began back in 1938.
A state chartered credit union, Credit Union ONE grew steadily over the past seventy
years and became one of the largest credit unions within the state. Currently, Credit Union ONE
has nineteen branches; seventeen located in the metropolitan Detroit area, one in Grand Rapids
and one in Traverse City. At year-end 2008, Credit Union ONE had $739 million in assets. The
membership of Credit Union ONE is very diverse, as the field of membership is open, which
means that anyone can join. At the end of 2008 membership was over 117,000 (Credit Union
ONE 2008, Annual Report).
Four hundred individuals are employed at Credit Union ONE serving the membership.
The CEO of Credit Union ONE has expressed concern over the closure of branches in the
past few years and the impact that it has had in terms of overall membership of the credit union.
The regional economy has experienced a downturn in most industries and financial institutions
have had their share of shrinkage as well. Closures as well as consolidations and mergers have
been the norm over the past several years.
Problem Statement
Although branches have been closed at Credit Union ONE, it appears that the
membership numbers remain the same.
Purpose of Study:
The purpose of this research project was to analyze the membership of the branches that
were closed over the past three years, determining what has happened to these members.
1
Research Questions
This research paper answered the following questions about the behavior of the members
of Credit Union ONE and whether or not closure of branches had any impact on these members.
1. Where are the members from the closed branches of Credit Union ONE currently
conducting their business?
2. Based on the research, what does this say about customer loyalty?
3. Was it even necessary to have the branches that were closed?
Definition of Terms
For the purpose of this paper, the following terms are defined:
Member – Individual who maintains an active account and transacts business with
Credit Union ONE.
Transaction – May be completed in person, by mail or through electronic services.
Branches – Facilities that service members; refers to three specific locations that were closed –
Farmington Hills, Rochester, and Bloomfield.
Limitations of Study
One limitation of this study was the data collected was from a single facility, Credit
Union ONE; and therefore had to be measured against other institutional information nationally.
Another limitation was if a member closed their account with Credit Union ONE, it was
not possible to track where they were conducting their business afterwards.
Lastly, if members’ accounts were not coded with their branch name before the branch
was closed, it was difficult to tell what branch they were originally from (for tracking purposes).
2
Chapter 2: Literature Review
The literature available on the topic of this paper is vast in some areas and sparse in
others; therefore the researcher has considered all types of financial institutions for the purpose
of this literature review in order to have optimum resources available for use. No differentiation
was made between the types of institutions that were discussed, as all were considered equal in
this research. The majority of sources reviewed were trade publications and financial journals.
In the past few years economic conditions have suffered throughout the United States,
more in some parts of the country than others. This stands to reason that depending on how
distressed economically an area is will affect the number of institutions that will be closed or
merged into other more viable institutions. Conversely, according to Amos (1992) areas with
strong economies will thrive financially and will see fewer closings.
Mendonca and Nakache (1996) focused on a discussion about creating services that
would allow customers to conduct transactions more remotely and would not require a visit to a
traditional brick and mortar location to complete business. The authors felt that with the increase
of automated teller machines (ATM’s) and online banking that branch banking would start to
decline and eventually become non-existent. However, many sources disagree with this, and feel
that there are always going to be those who choose to go to the branch offices in person; online
services will just enhance the experience.
“The goal for banks’ senior management is to turn today’s “all things to all people”
branch networks into highly differentiated systems for distributing multiple products”
(Mendonca & Nakache, 1996, p. 139). Knowing the customer base is essential in creating the
channels of distribution that will be a winning combination for the organization. According to
3
Anderson, Hosten, Latimore and Malhotra (1996) the needs and wants of the customers, and
what the cost will be to provide services has to be determined, as well as a plan to direct
customers appropriately to the right channels once put in place. Those institutions that are able
to accomplish this successfully will succeed, but those who fail cannot maintain constant growth
and will be susceptible to closure (Mendonca & Nakache, 1996).
The development or redevelopment of a strategy to best serve the customers’ needs and
generate growth for the financial institution will include evaluation of current branches, which
according to Bekier, Flur and Singham (2000) determine where branches need to be cut, and
others grown.
Bekier et al. (2000) found that branches could be closed, with the majority of the
customers being retained if care was taken to properly analyze what types of transactions were
occurring the most at a particular branch and by what type of customer; and offering alternatives
that would allow customers to still have the convenience needed, even if the branch was no
longer available. “With thoughtful migration levers like this, banks can actually retain ninetynine percent of their valuable customers from a closed branch” (p. 85).
In an article by Dahl (2009) the focus was on how to determine whether or not to close a
branch and what goes into the decision. Consideration was given to what the financial condition
of the branch looked like, how many customers used the branch, the prospect for a larger
customer base at that particular location, and what kind of products were most used. A thorough
evaluation of the location of branch was conducted, assessing propinquity to employment,
shopping and neighborhoods and growth opportunities. Before a final decision was made to
close or relocate a branch, an evaluation of remote services was made to determine if the
customers could be served through this channel. If the answer was favorable, then the decision
4
was made. Although the decision is never an easy one to make, a financial institution can save a
significant amount of money depending on the particulars of the branch and the handling of the
customers and assets.
Another article from the Credit Union Journal (CUJ, 2009) stated that financial
institutions need to periodically look at the branch network and determine if operations are
occurring at optimal capacity, or if there are gaps in the performance that need to be addressed.
If operations are not able to be ramped up to a level that is acceptable, then the institution should
consider closing those branches that do not hold muster. Caution should be taken about how
closing a branch might affect the entire branch network, as the closure could have little or no
effect on customers and financial performance, or could be extremely detrimental to the entire
financial institution and its’ viability. Some branches are found to be too large for the target
market that the institution is trying to serve. In order to reduce costs and maximize profits, a
shift to a more efficient type of branch may be indicated. Therefore, a thorough review is
necessary to determine if a plan of action is needed.
According to an excerpt from the Credit Union Executives Society (CUES, 2009)
Complete Guide to Credit Union Facilities, in 1998 the forecast was that bank branches would be
a thing of the past within ten years, but that has not happened. What has taken place is that
larger, older style branches have seen a decline in physical visits by customers, and an increase
in remote activities; such as online bill pay, online applications and deposits, and account
maintenance. The decline has led to more smaller-type branches popping up in all sorts of
venues, such as hospitals, department stores, and universities. This study goes on to say that
although branches may change in location and design, there will always be a need for branches;
as customers want both the physical and remote accessibility at their finger tips. In order for
5
financial institutions to stay even or ahead of the curve, there will be a need to stay on top of the
latest trends, have the most educated staff members, and always be evaluating where they are
economically versus where they want to be.
A commentary by Mark Sievewright (2008) reviewed seven trends that the author said
financial institutions should be equipped for given the statistics that traditional financial
transactions (inside branches) by 2010 will have dropped over the past ten years to forty percent.
The trends include: Growth – branch growth will continue but at a much slower rate, however
the rate of remote services growth will increase dramatically; Customers – because banking
behavior will be different, employees will need to be tech savvy and customer service focused;
Look and Feel – branches will need to be different, both in the look and ability to meet the need
of the customer, with the majority of the space in the branch used for customer needs, with little
space dedicated to behind-the-scenes work; Younger Customers – will not frequent the branch
often, as this customer will be mostly interested in what can be offered in the way of remote
services, but when coming into a branch will expect to see that the branch offers the latest in
technology; Beyond-the Branch Capabilities – technological advances will be made in great
strides for all areas of life, customers want financial institutions to keep up with the changes;
Myriad Advances – the latest in remote services will be the standard for all financial institutions,
as well as branches on social media websites, with some representatives time dedicated solely to
this purpose. This is what can be expected in the next decade for financial institutions that wish
to stay viable.
Writing about the future of the branch, Stein (2009) interviewed different banking
executives across the country to see how financial institutions are dealing with the current
economic crisis and what strategies are being put into place to help better manage the change
6
these organizations may be faced with. Some of the common topics that came out of the
interviews included: using metrics to track sales performance goals and the effectiveness of
employees to achieve the target goals set for themselves and the branch, and giving employees
sales tools that will allow them to be able to effectively sell the benefits of the financial
institution to customers. Stein stated that branch closures in 2009 were projected to be down
approximately thirty percent over 2008, not because of increased branch transactions but because
real estate prices have dropped and financial institutions cannot afford to sell existing branches at
the going rate. However, once the economy starts to turn around and real estate prices rise, the
expectation is that branch closures will increase dramatically. For the time being though, bank
managers are struggling to make current branches more profitable and productive. Many are
working with just what they have – doing more with less, while others are investing in
technological advances. More self-service features will become available at branches, such as
personal teller machines (PTM’s) to assist customers by video. Branch functions will stay the
same – new account openings, mortgages, loan, certificates of deposit, and credit card
applications. However, employee responsibilities will change dramatically. Now all employees
will be expected to be able to sell all product types. Customers can go to one person who can
take care of every transaction, instead of having to be shuffled from one employee to another.
Training will be paramount as this is a major culture shift and most banking staff have never had
that type of training. The wave of the future points to relationship banking, where not only do
banks have customers’ checking and savings accounts, but also their mortgage, investment
accounts, credit card, and online bill payment accounts. Once a customer is tied in to a financial
institution from several different aspects, the harder for customers to sever the relationship and
move to someone else.
7
A branch plan is needed to grow, according to Jooss (2008), but surprisingly not all
financial institutions have one. The plan needs to be in place as part of the strategic plan to guide
the development and growth of the institution. When developing a branch plan five levels of
information need to be looked at. The first area is membership data, when detailed will be
visible as to where your customers are located, where they business is conducted, and how much
business is with your organization. The second area is demography, which tells population and
growth information, basically the potential for new growth. Third, is competition, which
indicates where other financial institutions are located. Fourth is economic development,
basically what is going on in the busine …
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