Providing financial services to customers has been the essence of retail banking. But, not anymore. Today, customers expect their banks to go beyond transactions and provide a holistic customer experience encompassing their financial and nonfinancial needs. Yet, most banks are merely fulfilling customers’ financial needs.
Retail banks must offer a broader value proposition to customers—or face mass exodus. Accenture research on retail banking shows that, by 2020, more than 30 percent of banking revenues could be at risk due to new competitors and trends. But, finding a breakthrough value proposition calls for a radically new approach to distribution and marketing.
Banks must act as disruptors—reinventing themselves into what we call the Everyday Bank, pursuing the right mix of an evolution in the existing operating model and a revolution of innovative approaches. Accenture research shows that a gap of 50 percentage points exists in operating income between banks that become Everyday Banks and those that do not.