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

Table of Contents

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 a 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

2.5.5.1 The Content Dimension

2.5.5.2 The Time Dimension – Customer Relation Life Cycle

2.5.6 The CRM Framework as a fundamental for customer orientation

2.6 The analysis of CRM market trends

2.6.1 The CRM 2006 Barometer study

2.6.2 Findings of the study

2.6.3 Conclusion of the study

3 Analysis of Retail Banking in Greece

3.1 Structure of the Greek Retail Banking System

3.1.1 The over-regulation period

3.1.2 Deregulation and Reforms

3.2 Overview of the current Banking landscape

3.3 Indications of a slowly saturated market

3.4 Future Challenges

4 SWOT-Analysis related to customer orientation strategy

4.1 Basic Principle

4.2 Determination of SWOT-Analysis assessment criteria

4.3 SWOT-Analysis of National Bank of Greece

4.3.1 Strength

4.3.2 Weaknesses

4.3.3 Opportunities

4.3.4 Threads

4.4 SWOT-Analysis of EFG Eurobank

4.4.1 Strength

4.4.2 Weaknesses

4.4.3 Opportunities

4.4.4 Threads

4.5 SWOT-Analysis of Alpha Bank

4.5.1 Strength

4.5.2 Weaknesses

4.5.3 Opportunities

4.5.4 Threads

4.6 Discussion of SWOT-Analysis results

5 Conclusion and final recommendation

5.1 Introducing the layer concept for customer orientation

5.1.1 Strategic Layer

5.1.2 Analytical Layer

5.1.3 Operational Layer

5.1.4 Communicative Layer

5.2 Mapping the layers the CRM Framework content

5.3 Final Recommendation and closing

Objectives and Research Themes

The primary objective of this thesis is to develop a problem-solving solution and actionable recommendations for implementing effective customer orientation processes within the Greek retail banking sector. By analyzing current market saturation, bank-customer relationship dynamics, and utilizing the CRM framework, the author aims to identify how retail banks can improve customer satisfaction and long-term profitability amidst increased competition.

• Analysis of business drivers and trends in the Greek retail banking market.
• Evaluation of customer orientation strategies for key banking players through SWOT analysis.
• Examination of the relationship between customer orientation, satisfaction, and loyalty (The Success Chain model).
• Mapping the CRM Framework to strategic, analytical, operational, and communicative layers.

Excerpt from the Book

Summary of Chapters

1 Introduction: Provides an overview of the current Greek retail banking situation and establishes the research objectives and methodology.

2 Definition of Terminology and Conceptual Clarifications: Defines retail banking, analyzes its business drivers, explores current market trends, and introduces the fundamental concepts of customer orientation and the CRM framework.

3 Analysis of Retail Banking in Greece: Details the structural history of the Greek banking system and examines the current banking landscape, including market saturation indicators and future challenges.

4 SWOT-Analysis related to customer orientation strategy: Conducts a SWOT analysis of the three leading Greek banks (National Bank of Greece, EFG Eurobank, Alpha Bank) to evaluate their customer orientation strategies.

5 Conclusion and final recommendation: Proposes a four-layer concept for customer orientation integrated with the CRM framework and provides a final recommendation for successful implementation in retail banking.

Keywords

Retail Banking, Greece, Customer Orientation, CRM Framework, Market Saturation, SWOT Analysis, Customer Loyalty, Customer Profitability, Banking Products, Business Drivers, Strategy, Multi-channel Management, Relationship Marketing, Bank-Customer Relationship, Business Intelligence

Frequently Asked Questions

What is the core focus of this thesis?

The thesis focuses on how retail banks in Greece can implement customer orientation strategies to improve long-term profitability and customer satisfaction in a slowly saturating market.

What are the central thematic areas covered?

The work covers retail banking business drivers, the evolution of the Greek banking system, CRM frameworks, and practical SWOT analyses of major Greek banks.

What is the primary research goal?

The goal is to develop a problem-solving solution that links customer orientation processes with a holistic CRM framework to support bank business strategies.

Which scientific methods were employed?

The research methodology includes theoretical literature reviews, the use of Ishikawa diagrams for problem analysis, and SWOT analysis for assessing specific institutional strategies.

What topics are discussed in the main body?

The main body treats the definition of retail banking, business drivers (such as cost management and competition), market trends from EFMA surveys, and the strategic implementation of CRM frameworks.

Which keywords define this work?

Key terms include Retail Banking, Customer Orientation, CRM Framework, Market Saturation, SWOT Analysis, and Customer Loyalty.

How does the "Chain of Success" model impact the findings?

It establishes the link between customer orientation, satisfaction, and loyalty, showing that economic success is the result of these interconnected stages.

What role do the four layers (Strategic, Analytical, Operational, Communicative) play?

These layers provide a structured approach to mapping the CRM framework, helping banks plan and manage their customer orientation processes effectively across different organizational levels.