Published: 20 March 2000
Analyst(s): Mary Knox, Bradford Adrian, Kristen Min, Kurt Brenneman, Kimberly Collins, Annemarie Earley, Laura Starita
Management Summary Retail banking has evolved from an industry focused on acquiring the best branch locations to attract customers to an industry with multiple forms of delivery that offer convenience to customers. At the same time, product-centric cultures no longer work in the retail-banking environment and banks must develop more customer-centric approaches. These changes have placed significant technical strains on the retail banking industry. This report looks at emerging business practices, strategies and investments in delivery systems, channel integration, core banking and legacy systems and customer information management and application (CIMA). o Due to increasing competition, banks are tasked with sustaining and enhancing their current relationships as they seek to attract new customers. At the same time, banks must also work to keep costs down. Emerging business practices in retail banking will focus on wealth management, e-world, knowledge management, supply chain management, globalization and convergence of financial products. Technology will play a significant role in enabling these business practices, through customer-centric models that are cost-effective. o While banks are investing in many new types of delivery channels that cost less for customers to use per transaction, banks are still investing heavily in their more expensive branch networks. Technology is playing an increasing role in helping keep the costs of delivery down and enabling the presentation of a common face with consistent messages across a broad array of customer touch points. Channel integration is critical to the bank's ability to provide these consistent messages. Banks will need to migrate from a strategy that simply shares customer data across the touch points to one that has a single source of customer information and logic. o Customer information will be a key enabler for these business practices and can be used to support customer intimacy and targeted...
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