The UK retail banking market faces a period of change due to the impacts of unprecedented levels of new regulation, new digital technologies, increasing competition, and the uncertain economic climate.
Yet we see considerable opportunities for the incumbent banks and newer entrants: profit potential is attractive and there is also a chance for the banking system to recover its reputation in the eyes of the public. And market shares are likely to become more fluid. Given this context, we see 5 sets of challenges for retail management teams: redesigning and simplifying product structures, evolving distribution channels, sharpening the cost structure, rethinking the savings and investment business, and upping their games on customer service and conduct. In Perspectives on the UK Retail Banking Market, we look at the above dynamics in more detail.
