Gartner Research

The Changing Role of Information in Retail Banking

Published: 31 October 2000

ID: G0093741

Analyst(s): Mary Knox


Management Summary As retail banks move from product and channel strategies to customer strategies, the role of data and information is changing. The adoption of these customer-centric strategies is due to increasing competition; an expanding array of products, services, channels and delivery mechanisms; increased risks and the rise of the Internet and e-business. In addition, technological developments are enabling the pursuit of these strategies in new ways. In the traditional, product and channel model of retail banking, the role of data was primarily to enable transaction processing, servicing and account origination. As banks evolve to a customer-centric focus, the role of data and information is expanding to enable customer understanding, optimize service provision, predict customer behaviors and respond to opportunities and risks. Customer information is centralized (either logically or physically) and expanded to include a wide range of descriptive and predictive elements, as well as elements reflecting the bank's assessment of the customer in terms of profitability, desirability and risk. This information serves as a filter, defining all customer/bank interactions. Within the customer-centric model, product components - such as product type, fees and rates - are essentially unbundled, allowing for the development of customized and personalized products and services based on the individual customer profile. Unlike channel-centric models, the customer-centric model is channel neutral, with consistent information and services presented to customers and prospects regardless of access point or method. One possible next stage in the evolution of retail bank strategies is the adoption of stakeholder strategies. These strategies are focused on optimally providing customized and personalized products, service and information access to all stakeholders of the bank. These stakeholders may include senior executives, bank staff, customers and prospects...

Table Of Contents
  • Management Summary
  • Introduction
    • Increasing Competition
    • Expanding Products, Services, Channels and Delivery Mechanisms
    • Increased Risks
    • The Internet and E-Business
    • Enabling Technological Development
    • Evolution of Bank Strategy
    • Impact and Demands on the Information System
  • Enabling the Evolution
    • Information as an Asset
    • Role of the Strategic Information Office
    • Defining the Information Infrastructure
    • Justifying Infrastructure
  • Conclusions

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