To compete in a digitized world, retail banks need to transform themselves into a center where customers can receive relevant financial advice and guidance.
With the onset of competitors seeking to carve out market share in virtually every line of business within retail banking, traditional banks need to consider both long-term strategies and short-term adaptations.
For a long-term strategy, we suggest that banks transform how the customer thinks about a retail bank. Such institutions must focus on a broad range of underlying needs in order to become the “Center of the Customer’s Financial Health.” Just as a healthy lifestyle consists of diet, exercise and regular visits to a doctor, a healthy financial lifestyle includes sound financial advice that extends beyond just budgeting and saving.
