Keynote Address: The Changing Dynamics of Retail Baking
President and CEO, Alliant Credit Union
The basis of competition in retail banking has changed dramatically, yet many providers seem stuck in an outmoded frame. Historically, the business was defined by geography, with consumer choice being limited to those providers with offices proximate to their homes or offices. Market share mirrored branch share. Product, price and promotion were generic, and inertia dominated. The internet has fundamentally changed the market dynamic, creating a national marketplace, new competitors unconstrained by geography and with better cost structures and pricing, easy price discovery, and high time and place utility. The implications go well beyond channel usage to how consumers think about, acquire and use financial services.