As a result of the Credit Crunch the major supermarkets have an opportunity like never before to make inroads in to the retail banking sector. But what has led to this opportunity, what are the potential pitfalls and what can the banks do to defend themselves?
Just 4 years ago, consumers overwhelmingly rejected the notion of supermarket banking, believing that it wasn’t possible for a brand that provided them with their baked beans and toilet rolls, to also manage their money.
Today, however, more consumers are becoming attracted to the idea of the supermarket bank. It is this seismic shift in consumer attitude that enables retailer brands like Tesco and Sainsbury’s to even consider making deeper incursions in to the UK financial sector.
But what has lead to that shift in consumer attitude?
Firstly, in the eyes of the consumer, the Credit Crunch totally undermined the status quo – that our money is better off in the hands of the traditional, banking ‘experts.’ Financial experts yes, but banking experts? Not necessarily.
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