Chapter 3.2.6. Customers
During last 30 years, the customers were constantly becoming more demanding, more sophisticated and more global. This all weakened the bargaining positions of the banks they once had, especially in those days when a local bank was the only show in the town. These days, it is not unusual to go to several banks, as people put it, not to put all eggs into one basket. Banking, especially its retail part, is turning into a commodity business. For many clients experience of choosing between various financial providers is nearly the same as going to different groceries. This all brought the banks to the point to fight for their customers, and without any doubt, in the end of the day the customers receive most of the benefits.
Bigger financial institutions, so-called full service providers can lock in the customers to some extend, by providing a complete range of products. But then again, increasing customer sophistication gradually diminishes this strength.