CAPGEMINI, ING & EFMA REPORT:
WORLD RETAIL BANKING REPORT 2007
With research covering 180 banks in 25 countries, the World Retail Banking Report 2007 from Capgemini, ING and EFMA concludes that top retail bank managers must focus on five key success factors to globalise their operating models: develop international governance; ensure consistency with market and product strategies; invest upfront in IT transformation; build a thorough HR vision; and focus on execution quality. The report, also highlights the trend for retail banks to increasingly globalise their operating models over the next five years and looks at trends in increase outsourcing and offshoring (see page 156).
Bertrand Lavayssière, managing director of global financial services at Capgemini, says: “One of the key trends is that banks appear to be using day-to-day pricing strategies to influence consumer behaviour rather than to increase revenues. For the second year running, banks are actively trying to redefine their interactions with customers, directing them towards automated channels for common operations, such as checking statements, and reserving branches for more advanced services like financial services advice. Many banks have raised fees for operations at desks and cut fees for online banking and call-centre services.”
AITE GROUP REPORT:
COMPETING IN MONEY TRANSFERS
A report from US-based Aite Group, Competing in Money Transfers, gives an overview of the workers’ remittances market opportunities, assesses the evolution of the competitive landscape, and discusses the key trends reshaping the industry.
The report found the money transfer industry makes up a thriving subset of the global payment industry. Aite Group projects that cross-border transfers will grow 8% a year between 2006 and 2010. It estimates that by 2010, global workers’ remittances will amount to $456bn, up from $369bn in 2007.
The report anticipates that increased competition will force money transmitters to tap new channels, expand their product range, and differentiate their services. The advent of mobile phones and related payment technology into many emerging economies and the realisation that globalisation has significantly boosted cross-border remittances has made this area extremely attractive among banks, telecoms providers and existing players.
“Money transmitters need to differentiate by tailoring services for each particular type of money transfer. They should focus on analysing and segmenting transfers sent in master corridors,” says Gwenn Bézard, co-author of the report.
