Transformations in Retail Banking.
While continuing to maintain and control costs, retail bankers are focusing on achieving growth, updating core systems, improving sales and service for greater customer satisfaction and adopting sourcing strategies that will also help meet regulatory demands.
Findings from the 2006 World Banking Report, reveal retail banks are in a highly competitive market where local banking prices declined slightly by 1.5% and the average price of basic banking services was €76 down from €78 the previous year. Fierce competition in the US and evolving retail banking markets (Eastern Europe, China) are prompting changes in pricing structures while in Europe prices continue to converge in the eurozone.
How will banks compete in this competitive market?
Banks expect 1/3rd of their sales to come from remote channels by 2010. Remote channel sales are expected to increase dramatically in importance as banking services loose their human touch and branches focus more on proactive advisory sales. Find out how bankers have physically separated sales and service while developing their remote channels and the impact its having on their distribution models in The Rise of Remote Channels: Building a New Client Relationship Model.
Capgemini helps financial institutions face the highly competitive Retail Banking market with solutions in four areas:
- Sales & Service Innovation
- Branch Optimization
- Multi-Channel Management
- Back-Office Scaling
The solution area where a bank chooses to concentrate its efforts depends on which of the three main competitive levers an institution’s strategy is founded: products, pricing, or customer service.
Each of the four solutions can impact one or more of the three levers. The impact that each solution achieves will vary, so significant efforts planned for any one of the solution areas must be conducted in the context of a bank’s overall strategy, and be coordinated closely with efforts in the other solution areas.