The institutional stature of the retail bank: the neglected asset? Available to Purchase

As structural changes, new market entrants, new technologies and increasing customer demands gather momentum, retail banks are under pressure to reduce their cost structures so that they can remain competitive. The banks are in danger of over reacting to these new pressures by neglecting the strategic value of their own institutional stature. Even though there is growing evidence that retail customers are not very happy with the services that banks deliver, customers still trust their banks as a safe and secure place to keep their money. They do so because of the bank’s institutional stature rather than their sophistication in customer service. The implications of this paper for both academics and practitioners are that many banks may be overlooking the importance of institutional stature as an important service differentiator and industry entry barrier.