Can Banks Succeed in the Current Marketplace? Available to Purchase

Demand‐side changes, stimulated by higher levels of consumer awareness and sophistication, have combined with supply‐side changes,mainly induced by legislation, to create a difficult climate for banks. Lacking clear strategic direction and being undifferentiated, they find themselves competitively disadvantaged, particularly in cost terms,against the building societies. There is a difference in the way in which consumers perceive banks and what they expect from banks –i.e. a convenient money transmission service ‐ and the aspirations of many banks to be one‐stop providers of financial services. Suggests that relationship banking may offer a way forward but this requires a better understanding of marketing, organizational flexibility and a clearer customer focus. This poses major organizational, customer and employee challenges.