 Financial institutions that own retail banks are facing a major challenge. How do they re-invigorate their franchises? As the retail market matures, many banks are struggling to grow their customer base and their revenues.
With intensifying competition driving down prices and increased switching between providers, customers in the United Kingdom are more price-sensitive and less loyal than ever before. Retail financial institutions are struggling to connect with their customers. It is not enough simply to acquire customers with an attractive new rate. Banks must now work hard to retain customers, generate more revenues from them and increase the number of financial products sold to each individual.
To address these issues Deloitte have undertaken a major research project based on a consumer survey of 1,000 UK adults, in-depth interviews with key influencers in the retail banking market, and a series of in-house focus groups.
Our conclusions suggest financial institutions should seek to change the basis of competition by creating a value-added proposition that attracts and retains customers by leading on service rather than price. To re-connect with customers, the fresh proposition should be based on the principles of convenience, value and service. We suggest in the battle for customers – and their hearts and minds - the key instrument will be the branch.
We have identified six disciplines required for branch transformation. These are:
In order to win with branches, banks need to complete a fully executed transformation across all six disciplines. As a result, branch networks can become not only valuable assets, but the leading channel that underpins a new customer experience based on the principles of convenience, value and service.
For more information, download our publication the outlines the six key disciplines for branch transformation. (521KB, PDF)
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News release: Back to the future - branches vital to success of retail banks, says new Deloitte report.
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