Retail Banks at the Crossroad

By Axel Reinaud and Vincent Bastid

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.