Strategy& - EU Retail Banking, 2023

A Tale of Two Lands in European Retail Banking" is a report that explores the current state and future of retail banking in Europe. The report finds that around four in five banking players have moved to the land of improving profits, while the remaining fifth stayed in (or moved to) a smaller land with shrinking profits. The report identifies two priorities for banks to remain competitive in the near term: reinventing sales by becoming an omnichannel champion and reinventing products by providing better, simpler, faster, and more accessible products. The report also highlights potential challenges and opportunities for retail banks in Europe in the coming years. One challenge is the continued rise of fintech companies, which are disrupting traditional banking models and forcing banks to adapt to new technologies and customer expectations. Another challenge is the need for banks to focus on culture-led transformation and aspirational objectives, which can help them attract and retain top talent and build a strong brand. However, the report also identifies several opportunities for retail banks, including the potential to leverage data and analytics to better understand customer needs and preferences, and the opportunity to collaborate with fintech companies to develop new products and services. Overall, the report suggests that retail banks in Europe must be agile, innovative, and customer-centric in order to succeed in an increasingly competitive and rapidly changing market.