UK Retail Banks have recently been able to profit from a successful industry but as the market place continues to develop rapidly retail banks will face greater challenges.

To maintain reputation and financial growth in line with ever increasing regulatory requirements banks will need to consider the following industry issues:

• Offshoring 2.0. - as banks have located operations in India seeking a skilled workforce at much lower labour costs, the cost advantages that attracted them initially are eroding quickly. Banks will need to consider their options carefully as they enter the next stage of offshoring.
• Private equity competitors enter the fray - banks are increasingly facing competition from mid-tier specialty finance companies that have been acquired by private equity firms. Less encumbered by regulation, and free from satisfying the demands of the public markets for short-term results, they are shaping up as formidable competitors.
• The radical cost reduction imperative - banks are facing an earnings squeeze, driven by declining net interest margins, limited opportunities to generate additional fee income, and the demands of regulators for increased transparency in fees.  Banks will need to develop a new set of competencies in order to dramatically increase efficiency and drive down costs.
• Designing a global branch strategy - as they expand around the world, banks confront wide variations in the number and nature of branches in different countries. Global banks need to understand the key factors driving success for this critical distribution channel in different markets around the world.

Solutions that work in the real world

Deloitte can help to analyse, develop and execute solutions whilst providing you with a 360 view of your business.

Deloitte has been able to provide UK Retail Banks with expertise in areas such as IT, HR, actuarial, offshoring, finance transformation, programme management and regulation which has enabled banks to dramatically reduce costs whilst maintaining quality service.

Knowledge where it counts

Basel II, IFRS and Financial Crime are other areas where we can provide guidance.  The ability to bring a variety of expertise to our clients has earned us strong credentials in the retail banking sector.  Our clients include major financial providers within the UK and Europe.

To ensure we keep our clients up to date on topical issues we work closely with industry bodies and the FSA.