Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

A CX first strategy is critical for the perfect storm surrounding retail banking

Blog
2nd February 2018

The UK retail banking sector is developing quickly. In fact, banking is one of the fastest changing industries in the world at present with some experts predicting dramatic changes ahead if major banks don’t revise their business model. A perfect storm of change is taking place:

Anyone who studied Michael Porter’s Five Force Analysis at business school can see that retail banks are in a jam. Porter’s model described the various ways that competition can enter a market or become more intense. The number of competitors and technological change mean that change is coming from all directions for most banks.

Yet there are some interesting foreign entrants to the UK market. The US banking giant Goldman Sachs announced in 2017 that they are entering the UK retail banking market in the middle of this year. Goldman Sachs is taking an interesting approach. They are focusing only on the savings and loans business. They will provide a digital-only service to keep costs low, and they will position their rates at the top of the market.

Goldman Sachs expects to be able to build a considerable business by offering better rates and they know that they will get considerable media attention because of their own brand and US heritage.

The leading UK-based retail banks are facing competition from all sides. They have their long established reputation and tradition and they still have millions of customers – many of whom are quite happy staying where they are. But they need to invest in the customer experience and developing digital services if they want to be able to match the services being launched by challengers and digital startups. The customer experience is going to be a key factor in the next decade for this industry. What changes do you think retail banks need to make to be more customer-centric? Leave a comment below, or get in touch on LinkedIn and let me know.


Leave a Reply

Your email address will not be published.Required fields are marked *


David Turner
Article by: David Turner

News & Insights

Recommended for you
Solution Designer
Service Provider
Technology Enabler
Blog
Reflections on partnership models

I’m really looking forward to participating in the CCA Keynote Debate later today. I’ll be joining peers from across the industry to debate the importance of partnerships in business process outsourcing (BPO) – specifically focused on Customer Experience. As I’ve been preparing for the debate, I’ve been reflecting on the views of various management gurus that I’ve come across during...

News
Webhelp’s market expansion strategies in the contact centre outsourcing market earn it accolades from Frost & Sullivan

Webhelp's keen focus on agile customer experience (CX) solutions has helped it grow across Europe in an intensely competitive market Based on Webhelp’s successful growth strategy across Europe, Frost & Sullivan has recognised the company with the 2018 European Market Leadership Award in...

News
Gobeyond merges with OEE consulting creating a customer experience leader

Webhelp, Europe’s BPO industry leader, accelerates differentiation with new consulting investment KKR backed Webhelp today announces the acquisition of OEE Consulting and its merger with gobeyond to create an industry leading customer experience (CX) transformation services business with...

Whitepaper
B2B Marketplaces are blossoming

Following our publication last year of " The Spring of B2B Marketplaces ": it is time to look back and to answer these questions: has there been some movement in the market? Have B2B players evolved in their marketplace business models? Is launching a new market observatory worthwhile? The answers...

Case Studies
Webhelp People Analytics

...

×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the cookies policy.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp cookies policy outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook