The changing competitive landscape of retail banking in the e-commerce stage

The Internet and e-commerce have changed the competitive landscape of retail banking by eroding the barriers to entry created by physical branch networks and by increasing the commoditization of banking products and services. Retail banking was historically the domain of deposit-taking retail banks, credit unions, and building societies. These banks now face competition from Internet-only banks, branded non-financial firms, multinationals such as universal bancassurers, and other specialist technology providers. This study outlines strategies that traditional banks can use to reconfigure their value chains in order to survive in the new competitive landscape. Strategies include outsourcing Internet technology (IT) functions, forming alliances with technology providers and competitors, becoming a global player or a product manufacturer, and focusing on niche markets