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The Value Proposition – Proposition or Imposition? Irish Banking Retail Context

Barrett, Jill (2016) The Value Proposition – Proposition or Imposition? Irish Banking Retail Context. Masters thesis, Dublin, National College of Ireland.

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Abstract

The purpose of this research is to explore the level of importance consideration given to the development of a unique customer value proposition and the manner in which this proposition is proposed to or imposed on the customer within the Irish retail banking context. The organisation which is the subject of inquiry is herein referred to as Horizon.

The world of retail banking has changed dramatically over the past twenty years. Channel evolution has advanced from sole branch services, call centres, ATM machines, internet banking, e-banking self-service through to today’s, previously unimaginable and unfathomable, self-service mobile banking and contactless cash society. This exponential advancement has been made possible largely by technology, emerging and emergent disruptive innovations, globalisation, new entrants and social shifts. These have resulted in a customer role paradigm shift which have impacted and influenced their expectations, buying patterns and consumer behaviours.

The above coupled with increased hyper competitiveness due to the emergence of new players (for example, Fintechs, Peer to Peer Lending, Apple Pay and Google Wallet), crowdfunding and open source coding have resulted in increased commoditisation of banking products and services and the encroachment on incumbents’ previous market positioning advantages and distinct competencies.

This research is justified given that the value proposition and intrinsically linked customer centricity phenomenon are key differentiators for sustainable competitive advantage. This paper will specifically assess Horizon’s value proposition, ascertain the degree to which the company is customer centric and determine its level of preparedness for future changes in the industry, where the customer experience will be key.

A single exploratory case study was employed to ensure rich insights, opinions and experiences from key influential strategic, technical and operational executives within Horizon were captured. The case study approach is consistent with the methodological vehicle used by previous researchers.

Key research findings highlight varying complexities and inter-organisational obstacles which impede the attainment of true customer centricity Specifically,individual silo structures, politics and power plays are impeding the collective ownership, alignment and accountability for the value proposition. This is further exasperated by the absence of the single view of the customer and absence of analysis and use of customer rich analytics. Cumulatively, these factors are adversely impacting on Horizon’s value proposition and the customers’ experience.

Formalisation and co-creation of the value proposition, jointly with the customer and which is communicated, integrated and seamlessly aligned across all communication channels and divisions is required to position Horizon on the customer centric path for competitive advantage within the turbulent financial landscape environment.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HG Finance > Banking
H Social Sciences > HF Commerce > Customer Service
H Social Sciences > HG Finance > Banking > E-banking
Divisions: School of Business > Master of Business Administration
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 02 Nov 2016 15:36
Last Modified: 02 Nov 2016 15:36
URI: http://trap.ncirl.ie/id/eprint/2306

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