This paper from IBM Business Consulting and Sainsbury's Bank examines the threat posed by supermarket banks to the UK's established retail banking brands.
It asks: Are supermarket banks niche organisations that have passed their 'sell by' date or could they be mainstream players in the retail banking sector who have yet to unleash their true potential?
When Sainsbury's and Tesco moved into the retail banking sector in 1997, the high street banks eyed them nervously. They saw the potential for a very real competitive threat from trusted retail brands with large,established customer bases. They have now been joined by Safeway, Morrison's, Boots and more recently ASDA. Marks & Spencer also offers a suite of financial services products and its charge card has been available since 1985.
This paper examines whether the supermarket banks have lived up to their threat potential before taking a look at the sizeable opportunities that still exist for them to lure profitable customers away from the retail banks and how they may be able to capitalise further on their capabilities.» Download the document now 283Kb PDF