When it comes to retail businesses, whether it is banks or other retail forms, customers expect interactions to be intuitive, simple, and seamlessly connected across physical and digital touchpoints. Banks are now investing in meeting these expectations but have struggled to fulfill it.
Fremont, CA: Retail banking industry has undergone a lot of changes over the past few years. Retail banks have kept pace with evolving customer demands and worked to improve customer experience. Apart from this, few banks stand out for their innovation in customer interaction models or branch formats. Traditionally, marketing investments have focused on brand building and increasing loyalty. However, today retail banks are struggling to protect their brand and security from attackers.
• The Traditional Distribution-Led Growth Formula No Longer Effective: the financial crisis in 2007, a retail bank’s total share of deposits was closely linked to the size of its branch network. Over the past years, this relationship between deposit growth and branch density has withered. Deposits at the 25 largest US retail banks have become twofold over the past decade, while their combined branch footprint reduced by 15 percent during the same period. This reverse correlation is even more distinct for the top five US banks. Previously happened branch contractions were linked to economic downturns. However, this most recent wave of retrenchment has persevered through a period of robust economic growth. Customers’ willingness to purchase products via digital channels has forced banks to review their readiness to make online sales.
• Customer experience: When it comes to retail businesses, whether it is banks or other forms of retail, customers expect interactions to be intuitive, simple, and seamlessly connected across physical and digital touchpoints. Banks are now investing in meeting these expectations but have struggled to fulfill it. Many retail banks are held back by legacy IT infrastructures and siloed data. As a consequence, only a few banks are successful in improving customer experience.
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