20 April 2018
https://www.avoka.com

Bank branch reform key to retail banking recovery - A T Kearney

09 October 2012  |  7166 views  |  0 branch banking

Retail banks across Europe need to rethink their business models, in particular the role of the branch network, if they are to return to pre-crisis levels of profitability says consultancy A T Kearney.

The consultancy's 2012 Retail Banking Radar - which surveys 42 major retail banks and retail banking divisions of universal banks across 15 European markets each year - finds that the sector is returning to normal levels of income, cost and profitability from the nadir of 2009.

However, while revenues are almost back to pre-crisis levels, profits still lag 15% below 2007, while banks in Italy, Portugal, Spain and the UK have presided over a period of shrinking income.

The overall stability in cost income ratios over the timeframe indicates that banks have managed their cost base well in line with income. It also implies, however, that banks have shied away from a more fundamental redesign of both their business and operating mode, suggests A T Kearney.

The consultancy has identified six key areas crucial for European retail banks to progress and ensure performance recovery, from making efforts to achieve operational excellence, to complexity management (partly through reducing the legacy IT burden), re-pricing of products and service innovation.

However, the next big step in sales efficiency will only be possible if the branch is assigned a new role, says A T Kearney partner Andreas Pratz, as one channel amongst many in a model suited to cater for the needs of the digital natives.

"Whilst cost and risk management will remain high on the agenda, it is time to seek a step change in delivering to customers," he says. "This entails using new technology in a broader way than before, providing more services and advice outside the branch channel. It also leads the way into a new branch model not with less, but more streamlined branches."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Internet overtakes branch as channel of choice for Australians

Internet overtakes branch as channel of choice for Australians

08 October 2012  |  8663 views  |  3 comments | 1 tweets
ANZ to invest $1.5 billion in channel overhaul

ANZ to invest $1.5 billion in channel overhaul

04 October 2012  |  11185 views  |  0 comments
Bank branches set to disappear as more customers go online

Bank branches set to disappear as more customers go online

21 September 2012  |  11850 views  |  0 comments | 3 tweets
HSBC customers to get account access at Post Office branches

HSBC customers to get account access at Post Office branches

17 September 2012  |  5932 views  |  1 comments
Bradesco opens the bank of the future

Bradesco opens the bank of the future

30 August 2012  |  21488 views  |  4 comments | 2 tweets
Young Brits still visit bank branches - they're usually closed though

Young Brits still visit bank branches - they're usually closed though

01 August 2012  |  7985 views  |  8 comments
Branch networks expected to halve as more customers go online

Branch networks expected to halve as more customers go online

16 July 2012  |  9986 views  |  2 comments
Virgin Money opens first store

Virgin Money opens first store

09 July 2012  |  11841 views  |  0 comments
Branch still best for personal attention and expertise - Cisco survey

Branch still best for personal attention and expertise - Cisco survey

21 June 2012  |  5896 views  |  2 comments | 2 linkedin
"Brutal" jobs cuts at RBS spark debate on branch investment

"Brutal" jobs cuts at RBS spark debate on branch investment

19 June 2012  |  8118 views  |  0 comments
Virtual branches and Facebook payments: Poland gets new digital bank

Virtual branches and Facebook payments: Poland gets new digital bank

18 June 2012  |  22734 views  |  1 comments | 2 tweets
Metro Bank raises £126m to fund new branches

Metro Bank raises £126m to fund new branches

11 June 2012  |  6582 views  |  1 comments
US banks consider IT top spending priority; shift from branch to mobile evident

US banks consider IT top spending priority; shift from branch to mobile evident

06 June 2012  |  9490 views  |  0 comments | 1 tweets
Bank of America claims 10 million mobile customers; accelerates branch closure programme

Bank of America claims 10 million mobile customers; accelerates branch closure programme

24 May 2012  |  15942 views  |  0 comments | 2 tweets | 1 linkedin
BMO expands retail video conferencing service

BMO expands retail video conferencing service

18 January 2012  |  5657 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit http://response.ncr.comVisit https://aciworldwide.webex.com

Top topics

Most viewed Most shared
Revolut launches spare change savings toolRevolut launches spare change savings tool
9619 views comments | 14 tweets | 19 linkedin
TransferWise becomes first non-bank to open settlement account with BofE RTGSTransferWise becomes first non-bank to ope...
8806 views comments | 17 tweets | 31 linkedin
Top tier banks pass first transactions on trade finance blockchainTop tier banks pass first transactions on...
8384 views comments | 18 tweets | 23 linkedin
Barclays Bank sets up tech venture unitBarclays Bank sets up tech venture unit
8379 views comments | 16 tweets | 22 linkedin
Goldman Sachs acquires PFM startup Clarity MoneyGoldman Sachs acquires PFM startup Clarity...
7938 views comments | 9 tweets | 10 linkedin

Featured job

Basic c. EUR 90K OTE c. EUR 180K plus full bene...
Paris (preferred) or London

Find your next job