The German retail banking sector faces severe challenges. Global competitors are invading the market with new business models trying to win existing customers. At the very same time, customers become evermore demanding by means of price and quality and are willing to switch banks if it deems advantageous. If failing to act on these problems, the future of many German retail banks seems jeopardized.
Other industries, in particular the manufacturing sector, have faced similar problems. In the 1980’s German manufacturing companies had to cope with similar challenges and managed to successfully overcome their crisis by developing and applying new concepts such as process management, focussing on core competencies and involving external providers into their operations. In the light of this success story, industrialization appears to be a very promising mean to respond to the current situation the German retail banks are facing. While foreign institutes have already initiated successful industrialization activities it has only recently come to the attention of German retail banks.
This paper will therefore examine whether and how industrialization concepts can be successfully transferred and applied to German retail banks.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Problem and objective of the paper
- Methodology and structure
- Underlying concepts and current situation
- Status quo of the German banking sector
- Successful approaches of the manufacturing industry
- The history of industrialization
- The era of mass production and scientific management
- The era of lean production and value chain deconstruction
- Transfer of industry concepts to the banking sector
- Application of industrialization concepts to retail banks
- Key areas of industrialization
- Process Management
- Operations
- Outsourcing in the value chain of retail banks
- Procurement and logistics
- Implications for the retail bank of tomorrow
- Implications for retail bank customers and products
- Implication for retail banks
- Critical assessment
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar paper examines the potential of industrialization concepts, developed in the manufacturing sector, to address the challenges faced by the German retail banking sector. It explores whether these concepts can be successfully transferred and applied to retail banks, focusing on process management and outsourcing as key areas of industrialization.
- The challenges faced by the German retail banking sector, including increased customer demands, competition from new business models, and pressure on profit margins.
- The successful application of industrialization concepts in the manufacturing sector, particularly in the areas of process management and outsourcing.
- The potential benefits of applying industrialization concepts to retail banking, including improved efficiency, reduced costs, and enhanced customer service.
- The implications of industrialization for the future of retail banking, including changes in customer relationships, product offerings, and bank operations.
- A critical assessment of the potential challenges and risks associated with implementing industrialization in the retail banking sector.
Zusammenfassung der Kapitel (Chapter Summaries)
The paper begins by outlining the challenges faced by the German retail banking sector, including increased customer demands, competition from new business models, and pressure on profit margins. It then examines the successful application of industrialization concepts in the manufacturing sector, particularly in the areas of process management and outsourcing.
Chapter 3 explores the potential benefits of applying industrialization concepts to retail banking, including improved efficiency, reduced costs, and enhanced customer service. It also examines the implications of industrialization for the future of retail banking, including changes in customer relationships, product offerings, and bank operations.
Schlüsselwörter (Keywords)
The key themes of this paper revolve around the concept of industrialization in the context of the German retail banking sector. It explores the potential of applying concepts like process management, core competencies, and outsourcing, originally developed in the manufacturing industry, to improve efficiency, reduce costs, and enhance customer service within retail banking. Key areas of focus include the challenges and opportunities presented by the current state of the German banking sector, the successful application of industrialization in other industries, and the potential implications for the future of retail banking.
- Quote paper
- Heiner Offenbächer (Author), Alexander Lorch (Author), 2006, Industrialization in retail banking, Munich, GRIN Verlag, https://www.grin.com/document/64174
