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Banking Trailblazers - Winning Strategies in Retail Banking

  • ID: 2131590
  • Report
  • April 2012
  • 69 Pages
  • Timetric
1 of 5


  • Absa Bank
  • Bradesco
  • Ceská sporitelna
  • Ecobank Transnational
  • Garanti
  • Itaú-Unibanco
  • MORE
Building a ‘winning' retail bank demands significant investment in three core areas: branch banking, core modernisation technology and mobile money. Allied with a long-term vision, commitment from senior management and an environment that fosters innovation, a retail bank can outsmart and outperform its competitors. The single most important attribute that unites winning banks is the expansion of branch banking because they recognise the branch is the foundation of the customer experience, and when they get this right, they can start to achieve operational excellence and grow market share. Core modernisation technology comes in second place and this requires considerable investment. For example, Commonwealth Bank of Australia (CBA), one of the ‘winning' retail banks in the report, invested A$1.1bn ($1.18bn) in its new core banking platform. However, core modernisation technology delivers efficiencies. Already, CBA expects cost savings by the end of FY2012 because of its investment. Finally, the world's winning retail banks have harnessed innovation in contactless payments and targeted the mobile channel as a battle point between them and their competitors.


Banking Trailblazers - Winning Strategies in Retail Banking' helps to unlock the winning processes that have enabled major players to outperform their peers in branch banking, mobile money development; customer service innovation and IT process improvement.

This report is built upon the following:

- Interviews with top executives
- Case studies
- Data analysis of international ‘banking trailblazers'


- Using a number of profitability and efficiency indicators, this report identifies ten global banks servicing retail clients who are outperforming their peers. The benefits accrue to their shareholders and customers, but the ‘lessons' can be easily applied to any bank looking to add value
- Featured banks are contrasted with their country peer group
- In-depth interviews are conducted with senior management of the chosen banks
- A number of themes, including social media, mobile money and payment cards are explored

Reasons To Buy

- Create a winning retail banking strategy
- Understand the core elements of a successful retail bank
- Avoid the pitfalls of unproductive banks
- Learn how successful banks across the globe have outperformed their competitors

Key Highlights

- Winning retail banks ensure the branch is the foundation of the customer experience. They invest in their branch network and continuously build it up
- The mobile channel offers winning retail banks a battle point to uniquely differentiate themselves from their competitors
- Winning banks invest in the development, design and delivery of training and learning programmes for their sales and service workforce
- Know your customer. Like all aspects of retail banking, effective segmentation ensures that a new mobile money offering, or any new service, will prove popular and in demand by consumers
- Standard Chartered estimates that there were 50 million people in the emerging affluent segment in Asia at the end of 2010, and this number is expected to increase to 86 million by 2013
- Top retail banks think more like retailers when it comes to ‘wowing' the customer
- Collaborate to innovate
- In South Africa, a key revenue driver for Absa's mobile banking service is the purchase of prepaid airtime
- Winning retail banks capture every interaction opportunity with clients to offer relevant products and services to customers
- To be a ‘winning' retail bank, a financial institution must be committed to creating an environment that fosters creativity, entrepreneurship and the interchange of ideas
Note: Product cover images may vary from those shown
2 of 5


3 of 5


  • Absa Bank
  • Bradesco
  • Ceská sporitelna
  • Ecobank Transnational
  • Garanti
  • Itaú-Unibanco
  • MORE
Executive Summary

1 State of the global retail banking industry 2008-2011

2 Secrets of success in retail banking
2.1 The winning formula in retail banking – themes shared by the ten banks

3 Case study on Royal Bank of Canada (RBC)
3.1 Canada - A sector of intense competition: Competitor landscape
3.2 Building a ‘winning team' the RBC way: Key takeaways
3.3 Interview: Building a ‘winning team' the RBC way
3.4 Key facts about Royal Bank of Canada

4 Case study on Commonwealth Bank of Australia (CBA)
4.1 The ‘big four' dominate Australia's banking market: competitor landscape
4.2 ANZ
4.3 Westpac
4.4 NAB
4.5 Making mobile money the battle point for differentiation
4.6 Interview: CBA spearheads the battle on mobile money
4.7 Key facts on Commonwealth Bank of Australia

5 Case study on OCBC Bank
5.1 Innovate or get left behind by Singapore's big three banks
5.2 DBS
5.3 UOB
5.4 Segment payment card offerings to meet the different lifestyle needs of customers
5.5 Interview excerpt from July 2011 issue of Banking & Payments Asia: OCBC Bank's relentless focus on innovation and productivity
5.6 Key facts on OCBC Bank

6 Case study on Ecobank Transnational (Ecobank)
6.1 Ecobank's success: key takeaways
6.2 Interview: Reaping the benefits of a strong branch network
6.3 Key facts on Ecobank

7 Case study on Turkey's Garanti Bank
7.1 An industry built on technological innovation: the competitor landscape
7.2 Key takeaways from Garanti Bank
7.3 Interview: Secrets of Garanti Bank's bonus credit card programme
7.4 Key facts on Garanti Bank

8 Case study on Itaú-Unibanco and Bradesco
8.1 Boom time for Brazilian banks: competitor landscape for Itaú-Unibanco and Bradesco
8.2 Banco do Brasil
8.3 Banco Santander
8.4 Combining the best of new cultures: key takeaways from Itaú-Unibanco
8.5 Interview excerpt from August 2009 issue of Retail Banker International
8.6 50 million card portfolio
8.7 Key facts on Itaú-Unibanco
8.8 In tune with market trends: Key takeaways from Bradesco
8.9 Interview: Bradesco keeps an ‘eagle eye' on new market trends
8.9.1Key facts on Bradesco

9 Case study on Standard Chartered Bank
9.1 Standard Chartered: A clear geographic focus on Asia, Africa and the Middle East: Key takeaways
9.2 Interview excerpt from January 2012 issue of Retail Banker International with Sanjeeb Chaudhuri, group chief marketing officer and consumer banking regional head for South Asia at Standard Chartered
9.3 Importance of Liverpool sponsorship
9.4 Key facts on Standard Chartered

Case study on South Africa's Absa Bank
10.1 South Africa's fiercely banking competitive sector: competitor landscape
10.2 Technology key takeaways from Absa
10.3 Segmentation makes the difference
10.4 South Africa's digital banking innovator
10.5 Interview: Christo Vrey, head of digital banking services at Absa Bank speaks about the bank's industry and innovation in digital banking
10.6 Key facts on Absa

11 Case study on Ceská sporitelna in the Czech Republic
11.1Competitor landscape for Ceská sporitelna
11.2 Direct marketing boosts efficiency for Ceská sporitelna: Key takeaways
11.3 Interview: Direct marketing boosts efficiency for Ceská sporitelna
11.4 Key facts on Ceská sporitelna

List of Tables

Table 1 – Peer comparison for RBC, 2008-2011
Table 2 – RBC earnings, 2008 – 2011
Table 3 – Consumer Lending Market Share
Table 4 – Personal Core Consumer Lending Market Share
Table 5 – Annual GDP growth rate for Canada
Table 6 – Weathering the Financial Crisis in 2009
Table 7 – Solid Retail Performance in 2010
Table 8 – Year ends on a high
Table 9 – CBA, Peer Comparison – Financial Highlights
Table 10 – Financial Data for CBA
Table 11 – Annual GDP growth rate for Australia
Table 12 – Peer comparison for OCBC Bank, 2008-2011
Table 13 – Financial Data for OCBC Bank (S$ billion)
Table 14 – Annual GDP growth rate for Singapore
Table 15 – Percentage increase in consumer and SME customers, 2008 – 2010
Table 16 – Ecobank earnings analysis, 2008-2011
Table 17 – Ecobank balance sheet growth, 2008- 2011
Table 18 – Growth of Ecobank's branch, ATM and customer base, 2007-2010
Table 19 – Percentage of adults who do not use formal financial services
Table 20 – Peer comparison for Garanti Bank, 2008-2011
Table 21 – Past performance for Garanti Bank, 2008-2011
Table 22 – Annual GDP growth rate for Turkey
Table 23 – Peer comparison for Itaú-Unibanco and Bradesco, 2008-2011
Table 24 – Financial Data for Bradesco
Table 25 – Revenues from Payment Cards
Table 26 – Past performance for Itaú-Unibanco, 2008-2011
Table 27 – Itau Unibanco's banking services and fees
Table 28 – Annual GDP growth rate for Brazil
Table 29 – Itau Unibanco's income from credit cards
Table 30 – Financial data for Standard Chartered's retail banking operation
Table 31 – Absa Peer Comparison, Financial Highlights
Table 32 – Headline earnings for Absa's retail banking operations (%)
Table 33 – Financial data for Absa Group's retail banking operations
Table 34 – Annual GDP growth rate for South Africa
Table 35 – Ceska's peer comparison
Table 36 – Céska Sporitelna's improving efficiency
Table 37 – Ceska sporitelna financial data
Table 38 – Annual GDP growth rate for Czech Republic
Note: Product cover images may vary from those shown
4 of 5
- Royal Bank of Canada
- Commonwealth Bank of Australia
- Ecobank Transnational
- Garanti
- Itaú-Unibanco
- Bradesco
- Standard Chartered
- Absa Bank
- Ceská sporitelna
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown