The dynamics of competition within the basic bank markets in the UK

This thesis examines the competitive forces that are currently restructuring the basic bank markets. These markets are primarily concerned with retail deposits, the payments system and a range of lending related services. In the past, they have been the traditional preserve of the large clearing banks and more recently the building societies - now an increasing number of players such as foreign banks, retailers and credit card companies, have entered, or are threatening to enter, this market. It is the contention of this thesis that the adoption of a marketing concept is vital to the success of these market players, who will need to restructure their organisations and become more customer and market orientated. A further contention is that to be able to respond to the market more efficiently, the marketing ethos must permeate the entire organisation. The thesis also contends that technology of all the catalysts of change in the market has done the most to affect the competitive environment. It has reduced processing costs, increased efficiency and enabled a whole range of players to compete on a more equal basis. In future, technology certainly has the capacity to radically alter patterns of competitive behaviour in the basic bank markets.