In retail banking, growth, customer loyalty, cost, disruptive new technologies and risk are challenges that banks need to manage simultaneously. When formulating strategy, all of these elements must be considered.
New regulatory requirements, reduced spreads and increased risk management requirements have put enormous pressure on what were once profitable products and customer relationships. While scale at some institutions may allow for increased cost efficiencies, that alone will not drive future growth. New, disruptive technologies such as mobile payments present banks with new opportunities—if they act now. Waiting until later could present significant challenges.