Retail banks have entered a new era where little is straightforward and nothing can be taken for granted. The FCA (Financial Conduct Authority) is determined to open up the market to greater competition, starting with the introduction of the CASS (Current Account Switch Service) in September 2013. Banks can no longer rely solely on customer inertia to retain business and a low interest rate environment has dampened cross-selling as credit specialists are offering record-breaking deals.

The way the main banks respond over the next five years will be crucial to their defence of the highly concentrated market. Technology can be hugely disruptive, and with online and mobile experience becoming ever more important, an effective digital strategy is crucial. Knowing when to invest in own-brand technology and when to partner with technology specialists will be key to retail banking profits. This being said, branches won’t just be gathering dust. Customers still place value on face-to-face interaction, making the recent spate of branch closures a dangerous trend.

This report looks at the relationship between consumers and retail banks, considering the major market developments of the last 12 months. It provides insight into company strategies and performance of key products for the main high street banks. The report also covers typical product ownership among consumers, how frequently they use banking services and their attitudes towards retail banks, including in-depth analysis of levels of trust in the industry.