Roland Berger: 4 future business models for retail banks

26 March 2013

The retail banking industry will in the coming years face major change. As a result of three megatrends, retail banks will face large challenges in meeting client demands while simultaneously managing the efficiency of their internal operations. These conclusions are stated in the study "Dutch Retail Banking" of strategy consulting firm Roland Berger. The strategy consulting firm advises retail banks to align their future strategy in line to spend four 'future-proof' business models.

In the report, the strategy consulting firm presents an overview of three mega trends and their impact on retail banks.

Roland Berger - Retail Banking Trends

Roland Berger - Retail Banking Trends

As a result of these megatrends, client behavior will change drastically.

For example, much more customers will view banking products as a commodity, making it harder for banks to provide their products and services with enough differentiating characteristics. Secondly, customers will gradually lessen their physical contact with banks, making branches less important and remote services such as internet, mobile and call centers more important.

And thirdly, in particular in the area of complex products, the quality of services will increasingly determine consumer choice. Face-to-face contact will remain a key channel in this segment.

Four future business models

According to Roland Berger, if a retail bank wants to be successful in the future it has to consider and choose 1 of the 4 business plans.

  • THE RETAILER: Best-in-class distributor
  • THE COMMUNITY BANK: Best-in-class in customer relationships
  • THE FLAGSHIP STORE: Best-in-class online & mobile propositions
  • THE SUPPLIER: Best-in-class products and operations

Roland Berger - Retail Banking Business Models