Overview
Listings
Change and changing mindsets
A transformation is sweeping through the retail banking sector, and major names are beginning to rethink their operating models in order to prepare for a more consumer-focused future
No other segment of banking is more closely tied to the whims of the consumer than retail banking. Here is an industry that on a daily basis features in the lives of billions across the globe, but has come up against the pressures of rising customer expectations, technological advancements, shifting demographics and changed regulatory requirements. Faced with a torrent of fresh challenges and forced to deliver in a new operating environment, retail banking must reshape and innovate to equip itself more appropriately for the future.
As part of the World Finance Banking Awards 2015, we have taken a look at what it takes to succeed in today’s retail banking climate. With the industry at a crossroads, the retail segment must hone its focus on the consumer more completely than ever before if it is to match the standards shown by the winners of this year’s Banking Awards, and pave the way for generations to come.
Future-proof
“Many have predicted the fall of the traditional bank, as disruptive new entrants win [market] share by offering a better customer experience through new products and channels”, according to a PwC report entitled Retail Banking 2020 – Evolution or Revolution. “Yet, despite the emergence of new competitors and models, we believe the traditional bank has a bright future – the fundamental concept of a trusted institution acting as a store of value, a source of finance and as a facilitator of transactions, is not about to change.”
“Many have predicted the fall of the traditional bank, as disruptive new entrants win [market] share by offering a better customer experience through new products and channels”, according to a PwC report entitled Retail Banking 2020 – Evolution or Revolution. “Yet, despite the emergence of new competitors and models, we believe the traditional bank has a bright future – the fundamental concept of a trusted institution acting as a store of value, a source of finance and as a facilitator of transactions, is not about to change.”
True, the transformation of financial services, particularly in banking, has given rise to a host of fresh faces whose operations are slimmer and more technologically advanced than the powers of old, yet the steps taken by the established banks have done much to stave off the advances of the new kids on the block – so much so that some of the more storied brands in the retail banking landscape are among the most forward-thinking in the industry.
What has emerged is a model fit for future generations, as banking repositions itself to thrive in a post-financial crisis climate, focused on profitability rather than revenues. “Banks will have to reinvent themselves,” according to EY’s Global Banking Outlook for 2015. “Those that do, developing new products and leaner, more flexible business models for the future, will be able to deliver the returns their investors are looking for, even against the headwind of low global economic growth.”
Economic growth in the developed world leaves a lot to be desired, and even in fast-growing emerging economies, the rate of expansion has slowed, leaving opportunities few and far between. To gain an edge in today’s competitive landscape, retail banks must sniff out what possibilities remain and do more to satisfy customers for whom convenience and personalised services have become the norm. This new operating environment asks much of
retail banking. Only by looking to underserved sectors of society and pioneering new products and services can forward-thinking banks better compete in today’s market.
retail banking. Only by looking to underserved sectors of society and pioneering new products and services can forward-thinking banks better compete in today’s market.
Click to enlargeCustomer focus
One development that has taken hold recently is a commitment to satisfy lofty customer expectations, and to do so by employing new technological solutions (see Fig. 1), namely data analytics capabilities. “Banks, especially some larger institutions, expanded their use of analytics for deeper customer insights. Investments in mobile offerings continued to receive top priority, but upgrades to core systems were not as widespread a phenomenon as expected. Meanwhile, creating a fully differentiated customer experience remains an ongoing journey for most institutions”, according to Deloitte’s 2015
Banking Outlook.
One development that has taken hold recently is a commitment to satisfy lofty customer expectations, and to do so by employing new technological solutions (see Fig. 1), namely data analytics capabilities. “Banks, especially some larger institutions, expanded their use of analytics for deeper customer insights. Investments in mobile offerings continued to receive top priority, but upgrades to core systems were not as widespread a phenomenon as expected. Meanwhile, creating a fully differentiated customer experience remains an ongoing journey for most institutions”, according to Deloitte’s 2015
Banking Outlook.
In this digital world, new service providers have emerged, promising customer-centric alternatives and easier means of accessing personal finance. The development means there are new opportunities, though also challenges. PwC findings show that 55 percent of global banking executives believe these new players pose a threat to traditional banks, while 31 percent believe these same names present new partnership opportunities. Opinions on the subject are divided, though this new focus on the customer is highly characteristic of the changes that have gripped retail banking recently (see Fig. 2).
Click to enlargeWith new customers proving increasingly difficult to come by, and demands sometimes bordering on the undeliverable, the need to compile and process complex customer information is proving a key point of differentiation. “The retail banking industry faces a period of transformation. Those that embrace the opportunities that the technical revolution presents will differentiate themselves from their competitors”, reads Grant Thornton’s retail banking outlook. “However, building a long-term strategy during this time of economic uncertainty and increasing economic demands will be challenging.” With the transformation still very much underway and customers unsure about what they can expect from high street banks, a deeper understanding of changing consumer sentiments must first be ascertained.
“In the banking industry, connecting consistently with customers will require that banks understand the demographics of their markets, including the characteristics that define their best customers, and knowing which products and services they are willing to pay for”, reads KPMG’s banking outlook. “It also means developing the right distribution channels, as consumers increasingly use more than one channel.”
This same philosophy applies to digital banking as a whole, and where major names have taken strides to boost their big data competencies, they must seek also to apply this principle to areas that could benefit from technological gains.
The drive to digitise
Returning to the twin issues of stringent regulatory ties and tighter margins, the value of technology in cutting costs and in boosting productivity cannot be ignored by retail banking. The drive to digitise has occupied an important spot on the industry’s priority list in recent years, not least 2014, as traditional players look to incorporate consumer analytics, security, mobile and internet banking to keep pace with new market entrants.
Returning to the twin issues of stringent regulatory ties and tighter margins, the value of technology in cutting costs and in boosting productivity cannot be ignored by retail banking. The drive to digitise has occupied an important spot on the industry’s priority list in recent years, not least 2014, as traditional players look to incorporate consumer analytics, security, mobile and internet banking to keep pace with new market entrants.
Doing so has brought a swift and decisive end to the standalone solution that is bricks-and-mortar banking, and by optimising its distribution channels and streamlining operating models, the retail banking segment is a much-changed proposition. Still, the transformation is far from complete, and there is work to be done before major names in retail banking can compete with their technology-first counterparts. The sector requires only that major players, much like those contained in our banking awards, continue to push the envelope, and do what they can to prepare for a future where technology is king and innovation imperative.
The winners of this year’s awards are important because they offer an insight into the major steps taken towards this end. Should others take heed of their accomplishments, the retail banking sector will fast become a playground for innovation.
Search by company
|
Search by country
|
View all
angolaBanco BFABFA has grown and diversified into a market leading financial services provider with coverage across Angola. The bank provides personal and corporate products as well as investment advice and other retail services. In its 22 years, BFA has kept customers as its main focus, improving its quality of service and maintaining the security level of its banking services.
argentinaHSBCAlthough it is not the largest bank in the country, HSBC stands out for its product range and, with the significant backing of HSBC proper, has flourished in Argentina. The bank has been present in the country since the beginning of the 20th century and has since grown into one of the most sophisticated financial outlets available.
australia Commonwealth BankAs the country’s leading provider of integrated financial services and Australia’s most recognisable brand, Commonwealth Bank has done much to spearhead the latest industry advances not just locally, but globally. The bank’s retail division offers a range of services, designed to meet the needs of individuals and small businesses.
AustriaBank AustriaBank Austria boasts the distinction of being the number one bank in Austria, and so maintains an extensive network of clients throughout the region. Employing 7,000 people across 250 branches, the bank serves as UniCredit’s main base of operations in reaching out to customers in both Central and Eastern Europe.
belarusAlfa-BankWith 17 branches across the country and headquarters located in Minsk, Alfa-Bank’s leadership in the retail banking sphere in Belarus is distinct and far-reaching. The bank offers many different leading services as part of its retail offering, and through its presence across Eastern Europe has built a strong brand affiliation.
belgiumBNP ParibasIn Belgium, BNP Paribas offers a full range of products through its three core businesses: retail banking, corporate and institutional banking, and investment solutions. Together they amount to a comprehensive range of products for more than 3.6 million individual consumers, entrepreneurs, companies, public institutions and institutional customers.
boliviaBanco GanaderoWith a strong presence across Bolivia, Banco Ganadero’s retail presence in the country has raised the standard of performance in the market. The bank operates under a strong social ethic that translates into the promotion of a number of goals and objectives over the short-, medium- and long-term, all of which help local communities.
botswana Standard CharteredWith a history dating back to 1897, Standard Chartered Bank Botswana is the country’s oldest bank. Today it has a network of 17 branches across the country, and offers retail clients a wide range of services that include wealth management, SME banking and lending. It benefits from its extensive global network of partners.
brazilItaúProviding a full stable of asset management tools and services, Itaú’s Brazilian outfit offers clients expertise to help them make the most of daily banking and financial solutions. From direct portfolio management to trust and fiduciary services, the bank offers a diverse range of products to a growing number of Brazilian clients.
cambodiaANZ Royal BankThe go-to place for everyday banking and financial services, ANZ Royal continues to surpass the competition through competitive rates, a plethora of products and exceptional service across a large-scale branch network. The bank’s lending system is said to be of utmost transparency, providing borrowers with confidence and clarity.
canada RBCAs Canada’s largest bank measured by market capitalisation, RBC currently ranks as the continent’s leading diversified financial services company and a major provider of retail banking solutions. The bank’s ambition is to be seen as the country’s undisputed leader in financial services and a major contributor to the national economy.
chileSantanderBanco Santander is the largest bank in Chile with regards to loans and deposits. Boasting more than 500 local branches, it provides commercial and retail banking services to its customers – including Chilean peso and foreign currency denominated loans to finance commercial transactions – and retail banking services, including mortgage financing.
china Bank of ChinaFor many years seen as a smaller player among China’s more heavyweight banks, the Bank of China reset its stall and started to build an institution that would rival any in the international marketplace. Now, the bank is in a healthy position, having created a variety of new products and set the bar for service in a tightly woven retail market.
colombia BancolombiaGrupo Bancolombia is built on a culture of establishing personal relationships with its customers and helping individuals fulfil their dreams through financial support. With its efforts to streamline its services and provide easy-to-use platforms, Grupo Bancolombia has gained a reputation for always putting ‘human banking’ at the forefront of its activities.
croatia Erste GroupErste Group was established a little over 190 years ago and aims to provide its customers with a quality, all-round banking service. It works to ensure that the needs of its clients are satisfied every step of the way, and provides dedicated, professional staff to offer support to its customers on any and all financial matters.
dominican republicBanco de Reservas de la República DominicanaFounded in 1941, the Dominican Republic’s leading retail banking institution dominates the local market. With a range of established products, the bank prides itself on creating a welcoming experience for new and existing clients. BanReservas has the largest branch network in the country, and has succeeded among strong local competition.
ecuadorBanco PichinchaEcuador’s premier retail banking establishment is well rooted in the country’s retail banking sphere. Benefiting from scale economies, the country’s largest private bank has renowned customer service and wide-reaching products. Considered a leader in online banking products, Pichincha is well regarded for its technological investments.
germanyDeutsche BankThe main provider of retail banking in its homeland, Deutsche Bank has long since dominated a competitive and forward-looking market. The firm’s branch network continues to grow across the continent while drivers at home are customer service and technological advances. Furthermore, the firm’s responsibility track record is second to none.
ghana Standard CharteredWith a range of world class banking products and services to its name, Standard Chartered Bank equips customers with the right tools to safeguard and grow their savings. Focused above all on its relationship with clients and customers, the bank is the highest priced stock on the Ghana Stock Exchange. Further local expansion is on the cards.
greeceEurobank ErgasiasEurobank Group is a pillar of the Greek banking system, safeguarding the savings of millions of depositors. With assets of €75bn, Eurobank holds a strategic position in retail and business banking in Bulgaria, Romania and Serbia; offers discerning wealth management services in Cyprus and Luxembourg; and has a presence in Ukraine and London.
indiaUnited Bank of IndiaHeadquartered in Kolkata, UBI offers its customers an array of products and plays a significant role in extending banking services across the country, particularly in Eastern and Northeastern India. UBI makes commendable efforts to reach those living in isolated areas, such as establishing floating mobile branches that move from island to island.
indonesia HSBCHSBC has operated in Indonesia for nearly 130 years, meeting customer needs through 47 branches located in the country’s major cities. With an impressive portfolio featuring retail banking products and services, ranging from credit cards and mortgages to savings and wealth management, HSBC Indonesia continues to go from strength to strength.
jamaicaNational Commercial Bank JamaicaWith a vast array of products and services designed to meet the banking needs of its customers, National Commercial Bank Jamaica has helped to create a stable and advanced retail banking environment in the country. With a plethora of deposit, loan, and private banking services, the bank leads the way in an increasingly competitive marketplace.
japanNomuraEngaging in a wide range of banking services, Nomura’s retail offering characterises the high standard of the Japanese market. The bank offers high-quality investment information while retaining the simplicity of traditional retail services. Enhancing client satisfaction is of paramount importance, and Nomura holds monthly customer improvement discussions.
jordanJordan Kuwait BankFollowing years of dedication to modernising the domestic private banking landscape, JKB is now a standard setter in its community. The bank has taken great steps to encourage the active management of assets in an impressive range of markets, while simultaneously offering treasury and investment management services.
kazakhstanHalyk BankThe Halyk Bank of Kazakhstan was established after the reorganisation of the Savings Bank of the Republic of Kazakhstan. Since then, the bank has grown in scope, providing its customers with a wealth of expertise in banking, insurance, pensions, securities and leasing. The bank remains committed to its clients and continues to improve its offering.
kenya Commercial Bank of AfricaUnderpinned by an ambition to enhance the wealth and wellbeing of its customers, Commercial Bank of Africa is the largest privately owned bank in East Africa (CBA), a feat that the bank has achieved by working closely alongside its customers. CBA was also the first name in Kenya to introduce full digital banking channels.
kuwaitKuwait Finance HouseThe first bank to offer Islamic finance services in Kuwait upon its launch in 1977, Kuwait Finance House (KFH) is now a listed retail bank that serves a growing number of both Kuwaiti and international clients. It offers sharia-compliant banking, real estate, and investment services across its 52 branches in the country.
lebanonMEAB BankWith a focus on providing excellent customer care, MEAB Bank offers a wide range of products and services carefully tailored to individual clients. The firm is widely popular as a result of its easy-to-use internet banking platform, exceptionally competitive interest rates and high level of compliance with international standards to ensure safe and secure banking.
luxembourgBanque International à LuxembourgLuxembourg’s premier retail banking institution has set the standard in a tightly competitive sector. BIL offers a full range of retail products and services and has won a range of awards over the course of its history. From insurance to tax requirements and mortgages, the bank has an impressive reputation for considered, client-focused operations.
malaysia AmBankAs AmBank Group is one of the biggest banking groups in Malaysia, customers can benefit from the country’s largest ATM network. Established in 1975, the bank’s highly esteemed reputation has been enhanced further by its international partnerships with the likes of ANZ, IAG and MetLife Inc, which should help it to develop further.
mexicoBanorteMonterrey-based Banorte ranks among the top four banks in Mexico, measured by assets. With almost 1,300 branches and some 7,300 ATMs to its name, the bank boasts a high standing in the country, and has high ambitions to maximise the financial opportunities for its customers and for the country overall.
mongoliaXacBankXacBank was established in 2001, and since then it has tried to promote sustainable growth in the banking and financial systems in Mongolia. This vision has helped the bank to become one of the largest retail banks in the country, and one of the most respected. Its large market share is down to its dedication to its many customers.
moroccoBanque PopulaireCrédit Populaire is a group consisting of the Banque Centrale Populaire and Banque Populaire regional banks. True to its spirit of enterprise, Banque Populaire has set itself a goal for offering short-, medium- and long-term lending in an array of areas. Its serves its clients with a range of customisable products and services, catering for varied investment needs.
myanmarKBZ Bank (Kanbawza Bank)With a growing branch network – the bank operates more than 200 outlets across the country – Kanbawza Bank is renowned for serving retail customers with international-standard product and service ranges. The firm continually reviews its output in order to create daylight between itself and its competitors.
netherlands INGING is not just the most powerful banking group in its native Netherlands, it is also one of the most important financial brands globally. The Orange Lion is a major player in retail banking in the region, but also runs direct, commercial and investment banking operations, as well as asset management services. Its coverage is second-to-none in the country.
new zealandBank of New ZealandFar from offering the standard retail banking products and services, Bank of New Zealand has set out its stall to create advanced and transformative customer service of the highest quality. With a nationwide branch network, New Zealand’s premier banking institution has a significant edge over its local competition.
nigeriaFirst City Monument BankHeadquartered in Lagos, the First City Monument Bank has over 270 branches across the country. As sustainability is anchored as one of its core values, the bank continually strives to promote a positive social and environmental impact, while ensuring that it achieves economic value for its shareholders through customer-driven decisions.
omanBank SoharBank Sohar is one of the fastest growing banks in Oman, and the primary reason for its success is the fact that it believes in delivering the very highest quality service to its customers. It is why Bank Sohar offers the banking solutions that it does: its products and services are able to meet the demands of each and every one of its diverse clients.
pakistanSummit BankOne of the fastest-growing commercial banks in Pakistan, Summit Bank has helped to revolutionise the online banking market in the country since its launch in 2006. Based out of its head office in Karachi, Summit Bank also offers corporate, investment banking and trade finance services in addition to traditional retail banking.
panamaBanistmoBanistmo is always striving to help its customers and the citizens of Panama attain their dreams. The bank has helped to significantly develop local communities and the lives of those that live within them. With 138 years experience in the market, and with a presence in 10 countries, the organisation’s impact is now being felt both at home and abroad.
peruScotiabankHaving significantly expanded in Peru over the last few years, Scotiabank has found a market in which it excels. The bank has been in Peru since 1997 and, since then, its growth has been exceptional: Scotiabank now has well over a million customers and has redefined the retail banking landscape in the Latin American country.
poland mBankFounded over 27 years ago, mBank helped to establish corporate banking as an everyday activity in Poland. Since then, it has taken what it learned in that field and used its vast experience to offer a selection of products and services to serve retail clients. It continues to expand into Czech and Slovak markets, drawing in new customers as it goes.
portugalSantander TottaWith over 150 years experience in the market, Banco Santander Totta is the country’s fourth largest bank and has been an important part of the national banking community for some time. Supported by its Spanish parent, the bank has done a great deal to further the development of financial services in Portugal and the wider region.
qatarBarwa BankAs one of the newest Islamic banks in Qatar, Barwa has approached the market with a fresh perspective and drives sharia-compliant operations through a number of different avenues. The bank has gone from strength to strength in recent years, and finds itself at the pinnacle of financial services in the area with an ever-expanding portfolio of clients.
romania Piraeus BankExpanding quickly throughout Romania, Piraeus Bank is driven by helping clients to manage their monthly budget and saving them time. This has been achieved further through the recently launched winbank, a new version of its online banking service, which comes with innovative features for security, trading and facilitating payments.
saudi arabiaBank AlJaziraSpecialising in sharia-compliant retail banking solutions, Bank AlJazira delivers all manner of banking products and services to customers across Saudi Arabia. The bank’s ambition is to meet each individual’s unique specifications and to ensure it maintains the highest degree of client-centricity in all that it does.
slovakiaUniCreditWith a dominant position in Central and Eastern Europe, UniCredit’s customers are able to access the international market and forge new partnerships. The bank’s customer service is truly exceptional as employees take the time to approach every client individually and pride themselves on building relationships based on mutual trust and confidentiality.
sloveniaNLBNLB takes its responsibility to clients and employees very seriously and is acutely aware of the impact of its operations within the broader social context. NLB has developed a profound understanding of different customer needs, which has led it to optimise distribution channels and develop time-saving and user-friendly e-solutions for their benefit.
south africaNedbankNedbank is deeply committed to the notion that in order to build a sustainable society, core banking services need to be sustainable too. As a result, the bank has developed a sophisticated governance structure that ensures sustainability is a pivotal part of all of its activities. In doing so, it has provided a model that many banks would do well to follow.
south koreaKB Kookmin BankKB Kookmin Bank has grown to become one of the four largest financial institutions in South Korea based on total assets and market capitalisation. The company achieved this by offering a wide range of products and services to its 30 million customers. The bank has also helped businesses large and small to flourish.
spainCaixabankCaixabank is a Spanish financial services group owned primarily by Catalan savings bank La Caixa. With its headquarters in Barcelona, Caixabank is Spain’s third largest lender and has the highest number of retail branches in the country. It offers both retail and corporate banking, as well as insurance and investment facilities.
sri lanka Sampath BankA leading financial institution at the forefront of the banking sector in Sri Lanka, Sampath has helped raise the standards of the country’s retail offering to the point where it ranks alongside international markets. The bank is a well-organised, diversified and productive market maker with a number of assertive products and services.
switzerlandUBSWidely proclaimed the global standard bearer in many banking sectors, UBS’ retail offering in its home market is a balance of refined determination coupled with a tradition of an outstanding product range. The bank’s insights into the market in keeping ahead of the curve have allowed it to make the most of its resources in creating advanced portfolios.
tanzaniaNational Microfinance BankTanzania’s leading retail banking institution continues to push the boundaries in innovative product offerings. The bank provides services to individuals, small- to medium-sized corporate clients, as well as large businesses. It also provides treasury services to government and private institutions, while its lending services are at the forefront of the market.
uaeUnion National BankIn an increasingly competitive marketplace, Union National Bank has set the bar high for commercial and retail banking in the United Arab Emirates. Established in 1981, the bank has achieved a number of distinctions since, continuing to push the market and provide ever-improving service to its growing customer base.
ukMetro BankThe first new high street bank to launch in the UK in more than 150 years, Metro Bank has quickly established itself as a leading challenger in the five years since its inception. The bank is shaking up the UK’s staid banking sector by streamlining services and focusing on customer services. So far, customers have responded, and the bank is doing well.
us (east)Bank of AmericaBank of America wants to improve the financial lives of its customers. By listening to its consumers, it is better able to understand their needs, which enables its team to tailor individual products and services accordingly. The bank is built on strong foundations, which helped it bounce back from the economic downturn.
us (west)TD BankA growing and successful financial service provider, TD Bank’s management has set out to create a gulf between it and the competition – and by focusing on the customer experience element of output, the bank has done just that. The firm’s management boasts some big name players among its executives who have dealt blow after blow to the opposition.
vietnam Maritime BankA leading Asian financial establishment, Maritime Bank has come through a difficult period for Vietnamese banking. The firm has branched out into a variety of different retail offerings and sets high standards in its domestic market. Maritime has also strategically invested in its technology infrastructure to offer customers a forward-looking product base.
zimbabweCBZ BankWith a significant range of financial services across a number of markets, CBZ Bank is widely considered to be a forerunner in Zimbabwe’s retail banking sphere. The bank has a substantial and expanding branch network, which is locally well connected and provides high quality products to make up diverse portfolios across the country.