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