This is a challenging period for banks, as they continue to face uncertainty in the capital markets, constant pressure on their margins, a tighter regulatory environment, increasing demands on capital and a decline in customer trust. And new challenges are becoming evident.
Universal banks are experiencing a dramatic change to their interactions with customers – a change that is undermining the good, old-fashioned distribution model, which was built on a strong network of neighbourhood branches and enduring customer relationships that revolved around branch personnel.
