Premium Essay

Banking in Uk

In: Business and Management

Submitted By flan15
Words 2379
Pages 10
Banks today typically do not know their customer very well. Now, at the product level, many banks have invested significantly in customer analytics – plenty of credit card providers, for example, understand
a customer’s value potential, can track spending patterns and make targeted offers. Yet, many still send customers multiple product offers in the hope that something will stick. And few can analyze a customer’s deposit account, see that his salary deposit has increased, and send a note congratulating the customer on his or her promotion together with an offer of a premium card and a higher credit limit.

What business are banks in if they are not in the banking business? Put simply, retail banks are in the business of helping people, communities and enterprises achieve their financial goals.

The public’s trust in banks as British institutions has plummeted over the last generation, with public opinion polls charting a sharp drop in respect for the banking industry since 2008’s financial crisis.
This disengagement and erosion of trust has been exacerbated
by a diminishing need for customers to visit branches and engage with bank staff directly as the use of online banking has increased.

A PWC survey looking at banking in 2020 indicates a growing awareness, but a significant gap in preparedness. Sixty-one percent of bank executives say that a customer-centric business model is ‘very important’, and 75% of banks are making investments in this area (this pattern is consistent globally). Yet only 17% feel ‘very prepared’.

What business are banks in if they are not in the banking business? Put simply, retail banks are in the business of helping people, communities and enterprises achieve their financial goals.
In that sense, we could consider PayPal as a form of retail bank; its famous digital wallet now counts 110 million active users among which 2.6...

Similar Documents

Premium Essay

Banking of Uk

...1. The financial crisis of 2007/2008 and its impact on the UK and other economies Do you still feel vague about the causes and the effects of the financial crisis of 2007/8? Are you preparing for a job interview in either the private or public sector? The events of 2007/8 have shaped both the current UK commercial and business scene and are now having a massive effect on the public sector. Similar impacts are being felt across Europe and the wider world. Knowing a bit more about what happened might give you more confidence going into the interview! This leaflet will give you a basic understanding of the causes of the financial crisis of 2007/2008 and the impact which it had on the UK and other economies. Topics covered are:      UK history which led up to the financial crisis The effect on mortgages The banks’ reaction The effect on the world market The effect on the UK market This leaflet concludes with self assessment questions. 1 National and International Issues The financial crisis of 2007/2008 and its impact on the UK and other economies What were the root causes of the crisis? The roots of the financial problems of the last two/three years can probably be traced back to the deregulation of financial markets in the US, the UK and the Western European economies that started in the 1970s and gathered pace in the early 1980s. Deregulation swept away many of the governmental/regulatory controls and freed up organisations to trade across a wider range......

Words: 1573 - Pages: 7

Premium Essay

Banking

...Banking Research & Writing Table of content Introduction 3 Structure and functioning of UK banking system: 3 Performance measurement system 5 Trading revenues and Value-at-Risk 7 Evaluation of Regulatory Challenges of UK Universal Banking Model 9 Micro and macro prudential regulation 9 Basel II, III regulation 10 Global Financial Crises in UK 12 Conclusion 13 References 14 Introduction The UK managing an account has experienced considerable change in the course of the most recent 20 years, essentially determined by local deregulation and different strengths that have changed supply and interest qualities of the money related administrations industry. Elaboration of structure and functioning of the UK banking industry, Evaluation of Regulatory Challenges of UK Universal Banking Model and Global Financial Crises in UK is discussed further in this paper. Structure and functioning of UK banking system: The UK banking system is regularly said to be very focused and subsequently deficiently aggressive. The UK banking sector contains one market and not many markets. The UK banking system is indeed a mix of numerous separate product markets with rivalry originating from distinctive regions and diverse contenders. The High Street banks are all sizeable members in each of the business sector fragments and giving administrations to the overall population, the leading bank in each one fragment has a tendency to appear as something else. Business......

Words: 2870 - Pages: 12

Premium Essay

Metro Bank Case Study

... An assessment of whether Metro Bank, with its distinct model, can bring about a cultural revolution in the UK banking market Authors: Ben Robinson & Thomas Krommenacker As the first new entrant in the UK banking market for over 100 years, Metro Bank is generating plenty of headlines…. UK’s Metro Bank beats target on new accounts Metro Bank works magic on customers Does the first new British bank since the 1800s herald the start of new competition for your money? the established players, despite blotted copybooks, are deeply entrenched ... the barriers to entry are formidable Metro Bank a fascinating case study in what customers really want Metro Bank model backed by banking commission Metro bank opens on Sunday as battle for high street hots up Metro Bank Speeds Growth The UK’s newest bank must show a genuinely creative side beyond the promotional gimmicks dispensed at the opening of the first branch Banking revolution or the emperor’s new clothes? … a challenge to the tarnished incumbents is long overdue. But its American-style “fun” marketing may not be enough to win over jaded British account holders Metro: first bank for 100 years opens its doors. Metro Bank has promised to revolutionise the British banking experience. Temenos Case Study Contents 01 02 Executive Summary History and Background of the UK Banking Market • The Market Today • Consumer Trust, Satisfaction and Welfare Have Suffered Because of High Levels......

Words: 8376 - Pages: 34

Premium Essay

Critical Analysis on Costs and Benefits of the Financial Sector Within the Uk.

...Critical Analysis on Costs and Benefits of the Financial Sector Within the UK. * * * * * * * * * * * * * * * * * Introduction The international financial crisis has drawn an international attention in financial regulation and policies made by governments have become increasingly prominent. In particular, strengthening financial regulation in London as an international financial centre requires huge efforts. London has been able to an international financial centre continuously, mainly due to a large number talent are familiar with the financial industry London has a unique advantage in language and location (Re, 2005). In addition to banking sectors, insurance, trust, securities and asset management business also developed. However DeMartino (2000) highlighted the current global economic depression and international financial crisis, along with UK Treasury published paper “The reform of the financial markets” referred to as “the worst crisis in 60 years”. In contrast, Frieden (2000) described the analysis of the causes of the British government's international financial crisis, and make policy recommendations on how to strengthen financial regulation. UK Financial Regulation Authorities According to Green (2011) Britain's “2009 Banking Act” was taken effect in which compared with the previous various banking laws, this law shows characteristics such as authorizing the Bank of......

Words: 2353 - Pages: 10

Premium Essay

英国Marketing Thesis: Situation Analysis and Market Plan for a Uk Bank

...我在英国的哈韦斯特银行工作,在国家处于全球经济衰退的情境时,我的任务是为银行踌躇一个商业计划。现在的银行业正在脱离经济衰退的过程中。在当今的市场上,对银行业来说,存在着很多机遇,因为新的企业正在建立,新的移民来到这个国家,尤其是学生。因为这个国家复苏后的经济趋于稳定化,很多欧洲人士也移居到此国。在此种形势下,一些人更想成为独家经营者和合伙企业开始创业。对于银行来说是机遇,所以我们银行业可以从此情势下通过开立网上银行获取利益,因为技术介入银行业会为银行减少花费,展开竞争,帮助处于困难时期的企业。 英国市场分析—UK market analysis 来自2010年8月问卷调查统计后的国家官方数据表明约30,100,000位成年人,即将近总人数的60%每天都在使用网络。从未使用过网络的人数在日益的减少,每年大约增加9,000,000—10,000,000名网民。上一年在网上购物,享受网上服务的人数约3,000,000人。此数据表示在总人口中约占62%的年满16岁的人,大部分选择在网上购买运动设施和衣服。 In UK I am working in a Harvest bank and I have to prepare a business plan for a bank in the situation when there was global recession in the country and now banking industry is coming out of recession. There are a lot of opportunities in the current market because new businesses are growing, new migrants are coming in the country specially students, many Europeans are also coming because of the recovery toward stability in the country. In this situation many sole proprietors and partnerships are taking place many people want to start business. There is an opportunity for banks so our bank can take benefits from this situation by launching an online bank because of the intervention of technology in banks which are reducing the costs, giving competition and tough time to every business so a banks. 英国市场分析—UK market analysis In a report from Office of National Statistic in opinion survey in August 2010 it was stated that about 30.1 million of adults uses the internet every day which is approximately 60% of the total......

Words: 2094 - Pages: 9

Premium Essay

Financial Services Management

...Financial Services Management Student’s Name: School Name: Introduction The financial services sector comprises an important part of the UK economy. Some of the major industries in the financial services sector include banking, investment and insurance industries. These industries are further segmented into investment and commercial banks, broking firms and building societies. A further inclusion involves independent financial advisors and insurance and re-insurance companies (Kalle, 2009). The financial and professional services industry in the UK is the largest in Europe. The industry employs more that one million professionals. Its approximate contribution to the UK gross domestic product (GDP) is about 12% (Raby, n.d). However, in recent times, the industry has been ravaged by economic downturns. Consequently, pay and job cuts have increased (Kalle, 2009). This report lays focus on the financial services organizations in the UK. A particular interest is expressed towards banks with Barclays PLC being the subject of the study. Barclays Bank was founded in 1690 by John Freame. It was not until 1896 that David Barclay made Barclays a limited company. This was named Barclay & Co. which was recently renamed to Barclays Bank PLC (Ackrill and Hannah, 2001). Barclays PLC has many subsidiaries all over the world. It operates in over 60 countries and employs more than 113,000 people. Collectively, these are referred as the Barclays Group. Barclay group has a large market......

Words: 2760 - Pages: 12

Premium Essay

Uk Vickers Report

...ICB Independent Commission on Banking Final Report Recommendations September 2011 ICB Independent Commission on Banking Final Report Recommendations September 2011 Official versions of this document are printed on 100% recycled paper. When you have finished with it please recycle it again. If using an electronic version of the document, please consider the environment and only print the pages which you need and recycle them when you have finished. © Crown copyright 2011 You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-governmentlicence/ or e-mail: psi@nationalarchives.gsi.gov.uk. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this publication should be sent to: Independent Commission on Banking Victoria House Southampton Row London WC1B 4AD This document is also available from our website at http://bankingcommission.independent.gov.uk/ ISBN 978-1-845-32-829-0 Produced by the Domarn Group, London. Final Report Contents Contents ...................................................................................................................... 1 List of acronyms .........................................................................................

Words: 51266 - Pages: 206

Premium Essay

Qqqqqq

...View Point: UK Banking Industry UK’s banking sector, following the US and Japan, is the world’s third largest and considered foremost in terms of: efficiency, dynamism and return on capital. It services 95% of the population with about 3.5% of UK’s total workforce - over a million workers. The decade ending 2005 witnessed a surge of three folds in assets to €5526 billion, lending and deposits more than two fold to €3284 billion and €4984 respectively. The financial sector’s productivity is growing at three times the pace of the economy and reflects an increasing share of the GDP. Last year, banks and financial services contributed £70 billion to the country’s national output, equivalent to nearly 7 percent of the country’s GDP – 100 % percent increase from 2003. UK leads as a major international center for investment and private banking, cross border banking and accounts for a fifth of global international lending; with banks in London handling a third of the global foreign exchange business. Deregulation, Competition and Consolidation UK’s banking industry has seen a radical transformation with market liberalization by deregulation and the resultant competition. The Building Societies Act of 1986 permitted building societies to widen their financial services to include insurance and allowed building societies to convert into banks. Life insurance firms moved into banking and banks diversified into mortgages and insurance. Mergers and acquisitions has been the other......

Words: 1063 - Pages: 5

Premium Essay

Shari Ah Governance System Analysis

...more popular in non-Islamic countries. Although several Islamic banking licenses have been issued to Islamic Financial Institutions (IFI), the regulatory authority is silent upon the Shari’ah governance framework....

Words: 965 - Pages: 4

Free Essay

Tomama

...Question 1 Examine the organization structure of a FTSE 100 company and evaluate the reasoning behind its choice. Explain the advantages of this structure against other types of organizational structure. The FTSE UK index series is designed to represent the performance of UK companies, providing investors with a comprehensive set of indices that measure the performance of all capital and industry segments of the UK equity market. HSBC is on the 3rd rank of FTSE 100. History of HSBC HSBC Bank plc and its subsidiaries form a UK-based group providing a comprehensive range of banking and related financial services. HSBC Bank plc (formerly Midland Bank plc) was formed in England in 1836 and subsequently registered as a limited company in 1880. In 1923, the company adopted the name of Midland Bank Limited which it held until 1982 when the name was changed to Midland Bank plc. During the year ended 31 December 1992, Midland Bank plc became a wholly owned subsidiary undertaking of HSBC Holdings PLC (“HSBC Holdings”), whose Headquartered is in London. HSBC Bank plc adopted its current name, changing from Midland Bank plc, in the year ended 31 December 1999. The HSBC Group is one of the largest banking and financial services organisations in the world, with over 9,500 offices in 79 countries and territories in Europe, Hong Kong, the rest of Asia-Pacific, including the Middle East and Africa, North America and South America. Its total assets at 31 December 2009 were £579 billion...

Words: 2187 - Pages: 9

Premium Essay

Understanding Consumer Behavior in Retail Banking

...Understanding customer behavior in retail banking The impact of the credit crisis across Europe February 2010 Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Key findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The impact on trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Loyalty: the end of an era? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Reasons customers look elsewhere Measuring satisfaction Conclusion 8 How Ernst & Young can help . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......

Words: 4367 - Pages: 18

Premium Essay

Is the Reliance on the Financial Sector an Inherent Weakness of the Uk’s Liberal Market Economy?

...reliance on the financial sector is an inherent weakness of the UK’s liberal market economy, two questions need to be explored: firstly, how liberal is the UK’s liberal market and; secondly, how reliant is it on its financial sector? This will be the focus of the first part of this essay and it concludes that with increasingly liberal policies becoming conventional wisdom in British politics, the continuing expansion of the financial sector is inevitable. The second part will analyse the consequences of the Financial Crisis and how the UK’s dependence on the financial sector is, within this context, a momentous drawback. However, the third part of this essay will explore the idea that although better regulation and governance is necessary, the UK should maintain its dominance in the financial sector as it has become inherent to British economic culture and offers comparative advantage over other economies. ________________ Political ideology and resulting policies are very influential in promoting or reducing the magnitude of certain economic sectors such as manufacturing, agriculture, mining or financial industries. The remarkable expansion of the British financial sector is therefore a direct result of policies that facilitated and enhanced its growth. ‘[A]ll markets are socially and politically constructed (…) The appearance of markets, their scope, operation and regulation – and even their all too frequent failure and need of rescue – have inevitably social and......

Words: 3016 - Pages: 13

Free Essay

Ethics

...FIGHTING GLOBAL POVERTY FIGHTING GLOBAL POVERTY Banking on Bloodshed UK high street banks’ complicity in the arms trade Banking on Bloodshed: UK high street banks’ complicity in the arms trade Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1. The arms trade – “theft from those who hunger” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.1 Making a killing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.2 Fuelling poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1.3 Profiting from war and human rights abuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2. Financing the arms trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.1 2.2 2.3 2.4 Providing banking services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...

Words: 11395 - Pages: 46

Premium Essay

Hsbc Report

...23rd November 2015 Mr. Sheridan 8 Canada Square London UK Dear Mr. Sheridan, This is the report you request for analyzing and presenting the performance, activity, office policies, strategy, operation and importance of the group. It contains information about HSBC group, its organizational structure and also commercial awareness details. In the first sections I have included a brief history and an overview of HSBC today. In the following chapters I have talked in details about its structure and police offices. The last section brings information about its revenue, net profit and future plans. It has been pleasure and challenge working on this report. Please feel free to contact me in case of clarification or queries on this report. Kind Regards, HSBC I. History HSBC has a rich history, which starts back in 1865. It was established in Hong Kong and, two months later, in Shanghai by Thomas Sutherland and it started from a basic idea: to support trade between Asia and Europe. By 1900 it was extended in Europe and North America, Japan, Thailand, India, Philippines, Singapore, Sri Lanka, Malaysia and Vietnam. During Second World War, the group had to close branches and to move for a while its head office from Hong Kong to London. After the war, it played a key role in reconstructing the Hong Kong economy. In 1992 it acquired Midland Bank and became the biggest financial services organization in the world. HSBC continued to grow all this time and made......

Words: 2704 - Pages: 11

Premium Essay

Free Trade vs Protectionism

...social responsibility * definition of corporate social responsibility * Company profile * RBS social policy 6 * definition of social policy * corporate social responsibility activities in RBS * conclusion A case study-The financial crisis This case is examining the dispute between the government and the banking sector .it exposes the conflict between the need for tightly regulated banking sector and the need to keep the bonus driven structure. The UK Govt are planning to put forward a regulation reform that will force the banks to separate their retail banking from the rest of their businesses and above all the riskier investment operations and to increase the amount they have to keep in capital in the bank as a buffer against future shocks. However not all stakeholders agree with the UK government proposed reforms. Many industries has added their voices to the banks in claiming that structural reform will reduce lending volumes and also render London less competitive as an international banking centre. Question 1.1 Identifying each of the stakeholders and how they are affected. What are the main harms and benefits in this case for different stakeholders based on the...

Words: 3029 - Pages: 13