Retail Face to Face

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  • Topic: Bank, Internet, Online banking
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  • Published : August 29, 2011
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1 April 2011

FACE-to-FACE: A €15-20Bn MultiChAnnEl opportunity

McKinsey authors Carlos Trascasa, Director, Madrid office carlos_trascasa@mckinsey.com Radboud Vlaar, Principal, Amsterdam office radboud_vlaar@mckinsey.com Victor Matarranz Sanz de Madrid, Principal, Madrid office victor_matarranz@mckinsey.com Sara Gallizioli, Manager, Milan office sara_gallizioli@mckinsey.com Yvo Yeramian, Senior Analyst, Brussels office yvo_yeramian@mckinsey.com

FACE-to-FACE: A €15-20Bn MultichAnnel opportunity ForEword

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McKinsey and Efma are pleased to present this new report which shows that leading European banks are increasingly providing a sophisticated choice of electronic and face-to-face distribution channels and that their customers are impatient for more. Our joint study – comprising interviews with 3,000 consumers, an online survey of more than 150 banks, and in-depth discussions with leading European executives – reveals a complex, fast-moving retail banking sector in the throes of deep-rooted change with some players already well down the “multichannel” route and others just starting. In this report, we are addressing our key findings with respect to (1) the current and future role of face-to-face channels; (2) the expected transformation journey of European banks and (3) the strategic implications for the retail banking sector. Separate sections of the report focus on the findings in key European countries. We hope that the results of this research will provide readers with fact-based information allowing them to find their route in the multichannel environment.

Patrick Desmarès Efma

Radboud Vlaar McKinsey

Carlos Trascasa McKinsey

FACE-to-FACE: A €15-20Bn MultichAnnel opportunity introduCtion

Retail banking distribution is currently undergoing rapid change throughout the whole of Europe. New research shows that both banks and their customers expect face-to-face channels to focus predominantly on sales and advice in the future, while transactions will be handled almost exclusively via electronic means. The big question is not if this happens but when. The pace of the transformation, already well under way in some territories, will vary regionally and will depend on the ability of banks to remove the barriers that make customers reluctant to change, as well as the speed with which clients fully embrace online alternatives. The banks themselves say mobile banking could be the catalyst in markets that have been slow to develop electronic habits. McKinsey estimates that, successfully executed, this transformation could yield €15–20 bn of extra earnings for European banks over the next 5 to 10 years, through a combination of cost reduction and extra income. INTRODUCTION New research jointly conducted by McKinsey and Efma shows that leading European banks are increasingly providing a sophisticated choice of electronic and face-to-face distribution channels and that their customers are impatient for more. Our joint study – comprising interviews with 3,000 consumers, an online survey of more than 150 banks, and in-depth discussions with leading European executives – reveals a complex, fast-moving retail banking sector in the throes of deep-rooted change with some players already well down the “multichannel” route and others just starting. In this report, we will address our key findings with respect to (1) the current and future role of faceto-face channels; (2) the expected transformation journey of European banks and (3) the strategic implications for the retail banking sector. Separate sections of the report focus on the findings in key European countries. CURRENT ROLE OF FACE-TO-FACE The report confirms that customers use face-toface channels increasingly for sales and advice and currently use remote channels for making most of their transactions. Such general trends, however, conceal a more subtle and not always intuitive picture of what is happening at a country and product level, and during...
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