The world is changing, and so is retail banking.
New hyper-growth competitors.
New paradigms in old & new channels.
New market topologies.
PSD2 or MiFiD2 are just a few examples of pieces of EU regulation that highly impact retail banks today, and not only because they change the way they have operated but because they unlock opportunity and business models for new competitors.
There was a time in which losing customers to competitors was not a massive thing. Then came the direct banks that challenged the status quo, and yes, customer attrition became big.
What should you expect now, with the N26's and Monzo's? Those are banks that have broken the 1 million customer threshold in a few years...
Internet banking or mobile? or both?
Should I keep my branches or should I downsize?
most importantly, do I need the same kind of branches or personnel?
How do I justify and plan for the investments?
... sure these questions sound familiar, as they are being debated today in most banks' HQs and only a few ones have figured them out.
Concentration. Consolidation. Mergers of schemes and networks.
24 of the EUR 27 countries have seen a contraction in retail banking networks, and a higher concentration of market share in the Top 5 franchises.