Retail Banking

Not only do retail banks have to meet the challenges posed by increased competition, customer expectations and regulations, they now also have to deal with the impact of the Covid-19 pandemic. In this increasingly competitive market, retail banks find themselves looking at cost control and reduction, as well as new revenue streams, given the downward pressure on interest rates. In addition, banks have both an increased opportunity, but also a pressure, to digitise, with customer demand exponentially rising on digital channels.

Forward-thinking banks are increasing digital spend to serve growing customer needs and expectations around onboarding, digital servicing, mobile payments, personalised analytics, seamless omnichannel user experiences, along with more demand for support, guided journeys and advice. Given this rapid acceleration of digitisation across the industry, those that follow too late may well find themselves left behind and struggling to retain customers. 

Many banks see technology as the ultimate solution in its power to ‘do more with less’. Indeed, the right technology not only reduces costs while increasing automation and efficiency but can also become a USP, providing an experience and gaining data insights that competitors don’t have. Data has become one of the most important assets in retail banking – one that technology helps make sense of and monetise. It has become a critical internal currency, with every bank department seeking to better understand their data, and therefore their customers, to deliver enhanced experiences and ultimately achieve revenue uplift.

Another strategic imperative for banking is to reinvent its value chain by focusing sharply on the banking capabilities that truly differentiate from the competition and invest there. When capabilities do not differentiate, other sourcing opportunities are emerging, including the mutualisation of some parts of the value chain with other banks such as KYC and CLM.