An article relating to this blog post on Finextra:
Tesco to open 30 'bank branches' this year
UK supermarket chain Tesco plans to open 30 bank branches in its stores by the end of 2009 as it looks to cash in on consumer mistrust of traditional banks and extend its presence in financial service...
The fact that Tesco is seeing a doubling of customer deposits in recent months as distrusting consumers move away from the troubled banking sector highlights how banks need to go back to basics to retain their customers. A closer examination of why consumers
are putting their financial trust in Tesco would probably reveal that, animosity toward the banks aside, Tesco is a brand they feel they have a more personal relationship with. In addition to rebuilding trust, fostering a one-to-one relationship with each
customer is something banks should now be focusing on.
Of course, building one-to-one relationships can’t come at the expense of profitability, especially in the current climate. Ideally, every decision a bank makes with regard to a customer should cater to that individual’s specific needs but do so in a
manner that ensures the profitability of the account. Gaining full understanding of each customer as an individual, including their likely behaviour, and applying that to every interaction is not only critical for differentiation and loyalty in these challenging
times, but it may be the key to survival amid increasing competition.