Client centricity in retail banking
Client centricity and retail banking are not incompatible. Know what moves your clients and you will win new ones. You will also make existing clients more profitable.
No two clients are alike. And, from the cradle to the grave, no two clients place the same demands on their bank. The more precisely banks understand who they are dealing with, the more accurately they can tailor solutions to each and every client. That is why, when you are talking about high-margin private banking business with high-net-worth individuals, it is certainly worth undertaking huge efforts to segment the relevant client groups.
But in the retail business? Current accounts, overnight money and fund-based savings plans do not bring in sufficient returns to warrant spending heavily to gain a detailed knowledge of each client. On the other hand, knowing clients better is useful to help banks succeed even in this mature market segment.