UK Retail Banking Sector Essay Example | Topics and Well Written Essays - 3500 words

UK Retail Banking Sector - Essay ExampleThese form 90% of the total market shargon of the industry. HSBC takes the top position with assets worth $1,267,777 million.The major groups inside which this sector can be divided are the big banks, also called High Street banks, the Building Societies, and the Direct Banks. The High Street banks are the ordinary banks which supply accounts and loans to customers and businesses. They also have branches which can be accessed by customers. Building societies are mutual societies, which are owned by their members for the benefit of members i.e. of both savers and borrowers alike. (Davidmann 2006). These societies were preceding catering to the mortgage market only but have now started providing deposit and accounts to the customers very much like the normal banks. Direct Banks do not have any branches but reach the customer through the internet and other electronic sources. Many High Street banks like HSBC and Barclays also provide direct ban king solutions for the convenience of the consumers but unlike Direct Banks, they have their branches for other activities like product sale etc. Tesco Personal Finance, First Direct, and Egg are some examples of Direct Banks in the UK. As stated earlier, HSBC holds the top position by market value also at 122.29 pounds (2010). Building societies are not listed but Nationwide building society is one of the main financial institutes. These societies have now started working more or less like banks.The retail banking sector provides loans for various needs and attract deposits from customers to partly finance these loans. The transactions are mostly small in value but high in volume (Buckle and Thompson 2004). As this sector earns through volumes, it is very important to attract customers by providing product differentiation. This is provided by most of the banks by using highly coordination compound Information Technology networks.