Answer to Question #200121 in Management for Peter Masih

Question

Retail Banking has always been and will continue to be characterised as a mass segment 

that has a large customer base involving high-volume and low-value accounts. What are 

Banks doing to attract customers in this segment and managing to provide good 

customer experience to its customers despite the size / volume? (10 Marks)

Answer 1

How Retail Banks Attract and Maintain Customers

           The first strategy that is used by most of the retail banks to attract new customers and maintain millennial ones is through skipping fees. The banks in question offer free checking and opening of accounts without imposition of restriction of a minimum balance or regular direct deposits, hence attracting many customers.  Secondly, improved customer service is also used by the banks to maintain customers. The management of such banks are always focused on proper service delivery to customers and streamlining of experience.  The third strategy used by the retail banks is improvement of online banking options. Unlike other banks, retail banks have leveraged on the use online platforms to provide online services to their customers conveniently without necessarily visiting the bank physically when making deposits or withdrawing money.