Everyone has their own views on what retail banks will look like in the future. But some things seem certain. Retail banking is still the main force in banking, and will stay that way for the foreseeable future, despite the relentless growth of investment banking, corporate banking, asset management, hedge fund management and other forms of finance.
The Boston Consulting Group (BCG) produced a report a few weeks ago called Retail Banking: Facing the Future, which supports this view. “Retail banking will remain the dominant source of revenue for banks worldwide through 2015,” concludes the report. “In 2006, the retail banking business accounted for €1220bn in revenues, or about 57% of the global banking revenue pool of €2150bn. Even for most of the top 10 banking titans, retail business is still a critical revenue source – representing an average of 37% of total revenues.”
