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The thesis deals with the optimization of retail banks ’ branch and Internet banking channels resulting from 1) the use of Porter’s competitive strategy model which is suitable for the outside-in research approach adopted; 2) the potential for realizing improved efficiency and effectiveness; and 3) customers ’ requirements and satisfaction with products and services. Six research questions are posed: 1) Is M. Porter’s competitive strategy appropriate for use among retail banks? 2) Is it correct that large banks are more cost efficient than are small – medium sized banks? 3) Are mass market retail bank customers generally satisfied with the products and services received? 4) Are there points of differentiation banks may use to remain competitive? 5) Does gender, age, place of residence, or occupation imply different banking requirements and satisfaction levels? 6) Are there customer segments in the marketplace with requirements not fulfilled by traditional retail banks? Banks are encouraged to balance inside-out and outside-in strategic approaches. Banks shall optimize learning, innovation and leadership capabilities as suggested by the Resource Based view to enhance customer experience and reduce inefficiency. Porter’s competitive strategy ha