Retail banking: business transformation and competitive strategies for the future

The world of retail banking is changing. While previously a purely money-making entity, the industry has brought social responsibility onto its agenda, and the ground rules for success have altered. Traditional convictions, rules, and values that have influenced all banking business in the past are brought into question by this shift, and banks are adopting bold strategies in order to win out over competitors. Taking both multidisciplinary and holistic approaches, Retail Banking is a comprehensive analysis of how traditional retail banks can meet the challenges of the emerging competitive landscape. The book outlines the importance of considering the traditional fundamentals of banking and fitting them into the modern times, where technology is pervasive and developments in the macro and micro scenarios have changed the landscape of the industry. It highlights that modern retail banking is a conscious step away from the past, and suggests that for banks to succeed in this field, they must step away from ad-hoc initiatives and instead encourage loyalty and a life-long confidence in each of their customers. This book will be of interest to those with an interest in retail banking, bank management, business models, strategies, and financial services. The future opportunities for retail banks still lie in the needs of their customers. Sometimes banks have seemed schizophrenic. They have not always operated in the market with a clear strategy that is a synthesis of their internal and external vision, while consistency and order are both a prerequisite for good functioning. The danger is that certain strategies in some ways lag behind the present, leaving the market without adequate leadership. It is time to wake up. Retail banking is becoming a battleground where competition is getting more and more multifaceted. As it remains of utmost importance and utility to individual customers and to businesses, Banks need to differentiate themselves, and in doing this they must provide a new concept of customer-focused activity, which other banking and non-banking competitors are unable to emulate, rendering each customer relationship unique, while still maintaining a dominant position in financial services. The new challenge for retail banks is going to be how to educate customers to assess the bank value offering, and to deliver real wealth-generating services to them. I think that only in doing so can banks gain an advantage and put themselves in a position to build lasting customer relationships. This means recognizing that tailoring services to meet customers’ financial needs requires not only incorporating cultural, social, lifestyle, and life events into their value proposition, but also recognizing that more sales do not always lead to better service, but better service almost always leads to more sales. In other words, the bank product is a service and the seeds of the future for retail banking lie in this fact. The framework of the book is managerially focused