Organic growth is the preferred strategy in banks' home markets, although US banks are more evenly split between organic growth and M&A activity. But the study suggests many banks may be too ambitious in their growth targets. Despite it being more expensive to attract new customers rather than retain existing accounts, only one in five banks say they concentrate on existing customers. Most say they focus equally on existing and potential customers.
At the same time, broad low-price strategies will also decline sharply in favour of price incentives to encourage the purchase of products. Most banks think they need to strengthen their brands and more than a third think they need new branding.
Source: Retail banks globally very optimistic about growth prospects
Accenture, March 2006
Review by Steve Lodge