Nearly eight years after the financial crisis, the performance of many retail banks is still disappointing investors and financial markets, particularly in Europe. The transformation and cost reduction efforts highlighted by these institutions are not translating into positive market sentiment. It seems that retail banks’ business models are incompatible with both the overall economic climate that has prevailed since 2008 and the competitive challenges arising from new entrants.
In fact, retail banks have to reinvent themselves. And getting back on track is about truly transforming—not just adjusting—their core business models. In “Retail Banks at the Crossroad,” an article jointly written by Efma and The Boston Consulting Group, the authors explain that a successful transformation should be structured around three sets of actions: funding the journey in the short term, winning in the medium term, and enabling the transformation.
ABOUT BOSTON CONSULTING GROUP
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
© Boston Consulting Group 2023. All rights reserved.
For information or permission to reprint, please contact BCG at firstname.lastname@example.org. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com. Follow Boston Consulting Group on Facebook and X (formerly Twitter).