A new domino effect for high street banks?

Faster account switching, customer retention, new entrants and innovate offerings are putting the pressure on UK High Street banks. At the same time, keeping customers happy and staving off competition are top of mind. All of the planning that goes into ticking these boxes is wasted if the banks lack the resources to back it up.

There have been some game changing developments and all retail banks should take note. UK banks are now starting to follow in the footsteps of US counterparts by looking to outsource their retail banking infrastructures. Where they lead, competitors will soon follow suit leading to a domino effect.

So why is this model starting to change? Banks are now increasingly looking for outsourcing providers to promote innovation and better serve customers. As we enter this new omnichannel retail banking environment, we should expect to see a focus on unique insight and services available to the customer at the point of decision making.

Outsourced solutions are built for a purpose; they offer a flexible infrastructure that enables banks to innovate and bring new products to market faster. Having a streamlined, adaptable product suite is fundamental as consumers demand more from their banking providers.

The days of splashing the cash on internal IT maintenance are in the past. Traditional UK retail banks must look at new ways of operating to remain a fixture on the high street. The first dominos in the outsourcing game have fallen; expect others to fall in line soon.