Reinventing the Retail Bank

Through Greater Customer Intimacy

High-street banks can differentiate themselves from online competitors by creating their own disruptive business model – based on a customer-focused revival of their branches

As online and mobile banking become increasingly dominant, many observers of the retail banking industry are asking whether high-street branches actually serve a purpose any longer, or whether they are just costly anachronisms. Indeed, the humble high-street branch faces some hefty challenges, including: high running costs; regulatory and consumer pressure limiting overdraft fees; and new entrants into the market such as Metro Bank, supermarkets, telcos, phone manufacturers and online start-ups with innovative business models such as Kabbage and Wonga.

However, at Fujitsu, we believe that forward-thinking high-street banks with the vision to reinvent their branch networks have an exciting opportunity to disrupt UK retail banking. The challenge is to be the first mover to apply some smart business thinking, combined with lessons from the wider retail industry, to rewrite the role of the branch in order to create greater customer intimacy and loyalty, and to attract new customers. By reviving their branches, banks will be able to differentiate themselves from the competition – both online and offline – and reap lucrative rewards.

Jeremy Worrell is a Managing Consultant in the Private Sector Division at Fujitsu UK & Ireland

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