Study from SAP Charts the Future of Retail Banking in Europe and Beyond

Based on self-assessment surveys of middle and senior managers at 23 distinct organizations, predominantly large banks serving between one million and ten million customers, the study finds:

Growth through cross-selling

Among surveyed banks, 82 percent have strategies for growth, expected to be achieved mainly through increased cross-selling to existing customers. Whereas 30 percent of the banks have customers holding an average of 3.5 or more products, nearly half expect to reach this level within three years’ time. More than half of the banks queried aspire to give front-line staff IT support to initiate sales versus simply responding to customer requests.

Improving customer focus

Efficient customer management processes will be a key success factor, requiring improved customer insight and collaboration across departments. “Good” to “excellent” customer-based process management is currently achieved by eight percent of the banks, with 90 percent of the banks expecting improvements in the next three years. Only 22 percent have established consistent processes for the collection, storage and retrieval of customer data, but 61 percent expect to achieve better business intelligence capabilities in the next three years.

Enhancing product and service delivery

While only one in four banks is currently able to deliver current deposit or savings account products in real time, delivery on a daily basis will be an established minimum standard in three years. Nearly one-third of the banks currently handle more than 80 percent of customer inquiries with one call; two-thirds strive to achieve this in three years.

IT as enabler of strategic advantage

One-third of banks believe that their current IT systems constrain their ability to deliver on strategic promises. In three years, more than 90 percent of banks surveyed expect IT to sufficiently support, or be a key driver of, strategic advantage. An overall trend can be seen toward reducing in-house software development in favor of off-the-shelf, standard solutions. Parallel to the integration of front- and back-end IT systems, the alignment of organizational structures around customer-centric processes is seen as a critical success factor.

Source: SAP AG