“The accelerating pace of change from regulatory and technological developments brings unprecedented potential to transform retail banking.”
- UK Financial Conduct Authority, “Strategic review: Retail banking business models final report”, December 2018.
According to research conducted by the UK Financial Conduct Authority (FCA), traditional retail banking models may be on the cusp of unprecedented change due to technological and regulatory developments.
Although major banks with large branch networks continue to enjoy competitive advantages (e.g. lower cost of funding, interest on deposits etc) over alternative banking models, a combination of technological, regulatory and social changes are affecting retail banking services. These changes include: introduction of open banking; FinTech innovation; accelerating technological take-up; and demographic variables.
A sample of Gen Advisory’s research and training materials on “bank strategy” is displayed below.