New industry competitors, flexible technologies, and demanding shareholders are enhancing competition in the market and will probably force down prices. These structural changes are challenging retail banking strategy and are forcing them to alter. However, in the last 5 years some of the leading banks of the world have increased their retail banking revenues much faster than costs.

Bertrand Lavayssiere, managing director of Global Financial Services, CapGemini said that the report recognizes 4 major practices which have facilitated banks to reach significant organic growth most effectively in their domestic market. He further said, "Significantly, the majority of leading banks have focused on one of these four approaches to obtain competitive advantage: ensuring full multi-channel integration and optimization; combining fast time to market, innovation, and local client intimacy; leveraging a multi-brand portfolio to create attractive value propositions for each market segment; and increasing sales productivity through dynamic branch management."

Officers of 52 banks in around 15 countries said that they want to use these 4 approaches in order to support growth in future. Even banks that have developed good relationships with their clients must renew the distribution strategy so as to develop their business organically. It is predicted that due to tougher competition, banks may lose about 36 percent of their net income by the year 2017.