Retail Banking in Greece - New perspectives through customer orientation in a slowly saturated market

Bachelor Thesis , 2008 , 93 Pages , Grade: 2

Business economics - Banking, Stock Exchanges, Insurance, Accounting

The Greek retail-banking sector has generated over the last couple of years excellent revenues with their branches network and expansion strategy to the neighbouring Balkan markets. The private sector and households mainly demanded banking products as deposits, consumer credits, mortgages- and building loans, credit cards and services as customer advisory, phone banking and Internet banking. Especially a strong competition between the traditional Greek retail banks (e.g. National Bank of Greece, Alpha Bank, Piraeus Bank etc.) the new retail bank entrants (e.g. Proton Bank, Millennium, Marfin Popular Bank etc.) and the indications for a slowly saturated market will force the Greek retail banks to focus more and more on new perspectives through customer orientation.

The target of the thesis is to give on a transparent and structured way valuable knowledge what new perspectives through customer orientation are and what relation exist between customer-orientation process and a CRM framework in the Greek Retail Banking sector and how this can be used in a practical and methodical way.

Inhaltsverzeichnis (Table of Contents)

• I. Management Summary
• II. Table of contents
• III. Solemn declaration
• IV. Preface
• V. Glossary
• 1 Introduction
  • 1.1 Current Situation
  • 1.2 Problem Formulation
  • 1.3 Objectives
  • 1.4 Scope of the Thesis
    • 1.4.1 Limitation Criteria 1: Target market
    • 1.4.2 Limitation Criteria 2: Specific Period
    • 1.4.3 Limitation Criteria 3: Strategic Decision Management Level
  • 1.5 Out of scope
  • 1.6 Methodical Approach
• 2 Definition of Terminology and Conceptual Clarifications
  • 2.1 Definition of retail banking business
    • 2.1.1 Defining the business segment
  • 2.2 The attributes of retail banking business
    • 2.2.1 In terms of products and services offering
    • 2.2.2 In terms of customer-bank relationship
  • 2.3 What are the Retail Banking Business Drivers?
    • 2.3.1 Management of customer revenue
    • 2.3.2 Cost Management
    • 2.3.3 Decreasing loyalty of the retail clients and higher expectations
    • 2.3.4 Increased competition between traditional banks and new banks
    • 2.3.5 Consolidation in Retail-banking
    • 2.3.6 Introducing Internet as a new channel for e-banking services
    • 2.3.7 Summary of Business Drivers of retail-banking segment
  • 2.4 The analysis of the Retail Banking Market Trends
    • 2.4.1 The EFMA Retail Banking Survey
    • 2.4.2 Methodology and Assessment model
    • 2.4.3 The five pillars of the assessment model
    • 2.4.4 Findings of the report
      • 2.4.4.1 Strategy
      • 2.4.4.2 Business Intelligence and controlling
      • 2.4.4.3 Multichannel Customer Management
      • 2.4.4.4 People and Organization
      • 2.4.4.5 IT and application systems
    • 2.4.5 Conclusion of the report
    • 2.4.6 Mapping EFMA report findings with Retail Banking Business Drivers
  • 2.5 Fundamentals of customer orientation in retail banking
    • 2.5.1 Customer orientation as an originator for successful relationships
    • 2.5.2 Differentiation between market-orientation and customer-orientation
    • 2.5.3 Success chain as an instrument for customer dialog
    • 2.5.4 Problems in implementation of customer orientation process
    • 2.5.5 Designing successful relationships
      • 2.5.5.6 The Content Dimension
      • 2.5.5.7 The Time Dimension - Customer Relation Life Cycle
    • 2.5.6 The CRM Framework as a fundamental for customer orientation

  Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

  This bachelor thesis aims to analyze the challenges of market saturation in the Greek retail banking sector and explore how customer orientation can be implemented to foster long-term and profitable bank-customer relationships. The thesis investigates the current situation, identifies key business drivers, and analyzes market trends through the lens of the EFMA Retail Banking Survey. It also examines the concept of customer orientation and its application in the retail banking context, focusing on the CRM framework as a tool for successful implementation.

  • Market saturation in the Greek retail banking sector
  • Customer orientation as a strategy for long-term profitability
  • The role of the CRM framework in implementing customer orientation
  • Analysis of key business drivers in the retail banking sector
  • Evaluation of market trends based on the EFMA Retail Banking Survey

  Zusammenfassung der Kapitel (Chapter Summaries)

  The introduction provides an overview of the current situation in the Greek retail banking market, highlighting the challenges of market saturation and the need for new perspectives. It defines the problem, outlines the objectives of the thesis, and establishes the scope and limitations of the research. The chapter also discusses the methodological approach employed in the study.

  Chapter 2 delves into the definition of retail banking and its key attributes, including product and service offerings and the nature of the customer-bank relationship. It explores the business drivers influencing the retail banking sector, such as customer revenue management, cost management, decreasing customer loyalty, increased competition, consolidation, and the emergence of e-banking. The chapter then analyzes the findings of the EFMA Retail Banking Survey, focusing on the five pillars of the assessment model: strategy, business intelligence and controlling, multichannel customer management, people and organization, and IT and application systems. It maps these findings with the identified business drivers to gain a comprehensive understanding of the market trends.

  Chapter 2 concludes with a discussion of the fundamentals of customer orientation in retail banking. It differentiates between market orientation and customer orientation, explores the concept of the success chain as a tool for customer dialogue, and examines the challenges of implementing customer orientation. The chapter then delves into the design of successful customer relationships, focusing on the content and time dimensions, and introduces the CRM framework as a fundamental tool for achieving customer orientation.

  Schlüsselwörter (Keywords)

  The keywords and focus themes of the text include retail banking, customer orientation, market saturation, CRM framework, EFMA Retail Banking Survey, business drivers, market trends, customer relationship management, and the Greek retail banking sector. The thesis explores the challenges of market saturation in the Greek retail banking sector and investigates how customer orientation can be implemented to foster long-term and profitable bank-customer relationships. It analyzes key business drivers, examines market trends, and evaluates the role of the CRM framework in achieving customer orientation.

• College: University of Applied Sciences Zurich
• Grade: 2
• Author: Niko Mikopoulos (Author)
• Publication Year: 2008
• Pages: 93
• Catalog Number: V186527
• ISBN (eBook): 9783656995104
• ISBN (Book): 9783656995159
• Language: English
• Tags: retail, banking, greece