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Retail Banking Industry

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Retail Banking Industry
Contents 1. Introduction 2 2. Industry Analysis 3 2.1 Industry Background 3 2.2 PEST (EL) analysis 4 2.2.1 Political 4 2.2.2 Economic 5 2.2.3 Social-Cultural 8 2.2.4 Technological 10 2.2.5 Environmental 11 2.2.6 Legal 11 2.3 Summary of the PESTEL analysis 11 3. Porter’s Five Forces on retail banking industry. 12 3.1 Rivalry among Existing Companies 13 3.2 Entry barrier 14 3.3 Supplier power 16 3.4 Buyer power 17 3.5 Availability of Substitute products 19 3.6 Summary of the Porter’s 5 Forces analysis 20 4. Conclusion 21 5. Method Evaluations and Writing Limitations 22 6. Reference 23

B014351 Xin Li
Msc. Finance and Management 2010

Is UK Retail banking industry still ‘charming’?
A Report on the UK Retail Banking Industry 1. Introduction
Imagine what life would be if there were no banks around us. Corporations would fail to generate growth without banks financing supports, or the deals between sellers and buyers would all rely on in-person trading and the trust crisis is enlarged even more. Banks, to some extent, are holding the economic fate all around the world and also ensure the people’s daily life to last normally. As a learner of business and management, I always need insights into this issue and concern about the banking industry. Especially, when retail banks come to life, which is an essential element we talk about every day, and when people enter their chosen banks back and forth to make their investing decisions, the retail banking became as my most concerned sector from the whole banking industry.

After those ‘dramas’ that are going on the global economy, retail banks developed and survived till now and still are stepping into an unknown future. Consequently, I believe it’s necessary to deliver a market report about this specified industry. In this report, the main aim is to make an analysis on the remote environment of retail banking and what made UK financial market an attraction for


Links: http://www.bankofengland.co.uk/monetarypolicy/framework.htm accessed on 12th May, 2011. Banking Act 2009 http://www.legislation.gov.uk/ukpga/2009/1/pdfs/ukpga_20090001_en.pdf accessed on 12th May, 2011. Banking reform – protecting depositors: a discussion paper October 2007 http://www.fsa.gov.uk/pubs/discussion/banking_reform.pdf accessed on 16th May, 2011. BBC News, UK set to reform bank regulation http://news.bbc.co.uk/1/hi/business/8139752.stm accessed on 21st May, 2011. BBC News, Retail banks should be ring-fenced, says commission http://www.bbc.co.uk/news/business-13032403 accessed on 12th May, 2011. Be Investors,Bonuses justified or exuberant http://www.beinvestors.com/bonuses-justified-or-exuberant/ accessed on 20th May, 2011. Capital Requirements http://en.wikipedia.org/wiki/Capital_requirement accessed on 12th April, 2011. Financial Advice, Bank regulators agree new capital requirements http://www.financialadvice.co.uk/news/tax/89922-bank-regulators-agree-new-capital-requirements.html accessed on 12th May, 2011. History of the Bank of England http://www.bankofengland.co.uk/about/history/index.htm#1 accessed on 16th April, 2011. HSBC, MARCH 2010 HSBC UK Retail Banking2009 Annual Results http://www.hsbc.com/1/content/assets/investor_relations/100317_ukretail.pdf accessed on 20th May, 2011. HSBC Holdings plc Annual Report and Accounts 2008 http://www.hsbc.com/1/content/assets/investor_relations/hsbc2008ara0.pdf accessed on 20th April, 2011. HSBC, Regular saving http://www.hsbc.co.uk/1/2/personal/savings/regular-saver accessed on 20 April, 2011. HSBC, Retail Banking and Wealth Management. Investor Day. 11 May 2011 http://www.hsbc.com/1/content/assets/investor_relations/strategy_day/2011/110511_strategy_day_thurston.pdf accessed on 20th May, 2011. Huertas, T. 2007. The Future of Retail Banking in the UK. The Institute of Economic Affairs ' 10th Anniversary Conference. Investopedia, Windfall Tax http://www.investopedia.com/terms/w/windfalltax.asp accessed on 20th April, 2011. Llewellyn, D.T. (2005), “Trust and Confidence in financial services: a strategic challenge”, Journal of Financial Regulation and Compliance, Vol.13, No.4, pp.333-46. All accessed on 20th May, 2011. Murphy, M. & Jenkins, P. 2010. Retail banks face radical shake-up. Financial Times. http://www.ft.com/cms/s/0/6127becc-c7c0-11df-8683-00144feab49a,s01=1.html accessed on 20th April, 2011. OFT, Review of barriers to entry expansion and exit in retail banking http://www.oft.gov.uk/shared_oft/personal-current-accounts/oft1282 accessed on 21st May, 2011.
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