The days of the bank counter could soon be over Banks in the UK and across Europe could lose their best customers if they fail to make massive investments in online banking and marketing. Traditional 'retail' banks are most at risk, according to a survey by Deloitte Consulting, which talked to senior executives of 133 banks and insurance companies around the world. Cherry picking Most retail banks rely for their profits on a very small number of well-off clients. But now cherry-picking competitors are moving in. They poach the wealthy clientele by offering attractive financial packages and new services.
Technology is the driving force.
Meanwhile, smarter database management and marketing techniques allow the newcomers to target the well-off customers. The assault is coming from several directions. They offer online and telephone banking and tend to specialise on just a few financial products, for example current and savings accounts, or cheap mortgages and insurance deals. Some banking business is more profitable than other financial products. Single product operators, offering credit cards for example, can be leaner and more competitive than traditional banks.