Banking and Finance in United Kingdom
Introduction
The omnipresence of global trends and innovations debunk the idea of business monopoly and empire states. Today, the trends are set to maximize the potential of human powers by trivializing simple phenomena in order to fashion complex and subtle effects. In the minds of prominent sociologists and philosophers these trivialization of occurrences brought about by man’s deepest desire of uncovering the truth and meaning of life. However, our correspondence and connection with the truth is indirect and diluted which can only be accessible via representations and constructs. Hence, the necessity, though, not necessarily is, of excavating the truth embedded on phenomena became an ordinary human laborious pursuit.
Moreover, due to rapid changes on various aspects of human life our reactions vary depending on the way we perceive it, while forming effective and efficient mechanisms become a mechanical elocutionary act. This fact is paralleled with the nature and condition of business operations wherein technology dictates in setting the trends and innovations. Moreover, such despotic nature of technology invigorates the force and power of globalization to deeply penetrate all human spheres of interaction.
Historical antecedent on business evolution
The incorrigibility of technological advancement obviously shoves business operations and economic modes to be flexible. Here, business movers, analysts, strategists, theorists, scholars, and other personalities with significant role in business management and economic functions should be shrewd enough to incline their attention to the unexpected events and surprises which charily crafted by setters of global trends and innovations. Therefore, in business operations incessant assessment, evaluation, and revision of organization’s strategies, programs, standards, objectives and goals are imperative. So much so, that such relentless observation should have mixed with collective effort and work of all representatives and members of the giving organizational body.
Marshalling momentous events in the cycle and growth of civilizations can be mapped using the scalpel in detecting the contourical locations of facts concerning economic struggles contained in history. The inseparability of economic, social and political factors is embedded in human struggles as recorded in the annals of olden times.
Hence, the evolution of marketing processes and modes of producing goods and services was not only invented during the recent centuries but, was already present when the first civilization came to existence. Although, no proper and serious study made at those times, recent discoveries and theoretical principles were, I believe, are products of the precedents civilizations. Meanwhile, not until ’s revolutionary theory which led to crumble the traditional management process and replaced it with a scientific-based management process stupefied managers, capitalists, and movers of his time.
Inseparability of social domains and its eventual effects
Meanwhile, let us end these historical actuations and pursue our articulations on the recent scenario affecting the domain of business and marketing.
The ascension of skyscrapers, business towers and trade centers in different places all over the world signify the dominance and control of business sector compared to other social fields. We can argue then that business operations become instrumental in human living without which the height of survival maybe reduced to a lesser amount. In contrast, business as a mode of survival for human beings inexorably becomes an exploitative and dominative domain wherein human resources and manual labor are alienated from the true value of human dignity and worth.
Despite this reality, human resistance is tempered by the need to survive and to further acquire material possessions. Likewise, as man’s social and material needs increases, new business production and services schemes are emerging in response to these increasing demands.
It is in this context, which many business types are emerging due to human needs. On this account, technology, human needs, and business inseparably affect each other’s domains, more so, tends to cross each other’s boundaries to penetrate each others’ systems. The chain of reaction cannot be dissolve easily. This idea under capitalist’s viewpoint, the plethora of ever-increasing needs is the façade of one fundamental need: the pressing need for money. Now what dictates business firms and increasing expenses on research to track down recent trends is because of such need.
The Case Study
In this paper, I would like to present a case analysis on the emerging trend or might be considered as a prevailing economic drawback on the banking and finance system in United Kingdom.
The objectives of the study is to examine the present state condition of United Kingdom’s banking and finance environment by drawing one popular banks as a case for diagnosis. Moreover, using management measurements and methods of analysis like five forces, this paper hope to find the problems ranging from customers’ behavior, marketing system strategy and emerging global trends, and in turn, propose alternative marketing strategy in order to medicate the existing drawback.
The scope of the study will only be limited on the issue about the UK’ s banking and finance system analyzed using various methods of investigation, an internal auditing on Lloyds banking system and financial operations, the global trends which directly or indirectly affects its business banking operations, and the financial market in general.
Significance of Financial Market
In the norm of business and economic growth, financial system inevitably plays a vital role. We are told that financial market is embodied with sophisticated systems in which are observed carefully by financial and marketing connoisseurs. The role of financial system is to be an intermediary between lenders and borrowers, in this sense, for example in banking business “providing a menu of saving vehicles with differing risk and return characteristics, and helping investors find the financing they need, taking into account the returns and risks on the projects they wish to undertake (2003 p.2).” Banking industries and other similar forms can be accounted as financial markets in which are responsible for giving financial assistance and services to borrowers, lenders and investors.
in his book published its English version in 1934, provided an elucidation of the relevance of financial markets as entities significant in the economic development:
The banker is not so much primarily a middleman in the commodity purchasing power as a producer of this commodity. He stands between those who wish to form new combinations and the processors of productive means. He is essentially a phenomenon of development, though only when no central authority directs the social process. He makes possible the carrying out of new combinations, authorizes people, in the same society as it were, to form them. It is the ephod of the exchange economy (p.74).
Furthermore, such role of financial development in economic growth posits a great significance in the development and progress of a society in general. again underlined in his speech delivered after his audience in Brazil that:
Financial development is at least correlated with economic development and that a sound and sophisticated financial system promotes the efficiency of investment and economic growth in the market economy. It is obvious that a poor functioning financial system can hamper economic growth and development (2003 p.5).
Clearly, financial markets in general help economic development and growth of the society. Conversely, if financial system is poor and the governing programs are no longer effective can lead into a decline of economic growth. Moreover, rapid technical progress and trends in global financial systems can be harmful in the national and local financial markets if and when no proper procedure is employed.
Therefore, in underlining the significance of financial market, we come to recognize its vital role in the economic development and intensification. However, relevant to such status is the prevailing drawback of UK’s banking and finance status in the present time. Does this show the obsolete and antiquated strategy on banking and finance system or only a matter of lapses in medicating the unseen forces spread by global trends and innovation? It can be considered as both valid questions in which it somehow impaired the prevailing financial system that caused a drawback in banking and finance business of UK.
Question No.1: Examine the internal environment for the UK Banking and Finance and compare it with world trends.
A. Banking and Finance in United Kingdom
In this case, we are going to analyze the status of banking and finance in United Kingdom using the IMF report done in 2003. This report is entitled: . Although, the report was made five years earlier, it somehow reflects something relevant in this present state.
According to IMF overall stability assessment on financial system, United Kingdom’s sophisticated financial sector poses a sound and highly developed financial institutions, markets, and infrastructure (2003, p.7). This positive feature of banking and finance was supported by the financial stability policy framework in which being practiced on how to sharpen focus, accountabilities, transparency and encourage and facilitate coordination between the main players. Moreover, the less prescriptive mode of supervision by the United Kingdom is highly treated compared to some other countries, but “with relatively more emphasis on policies to promote good corporate governance and market discipline (2003, p.10).”
However, the changing financial landscape brought a rapid change on the financial system operations. In (2006) speech about Financial Risk in the UK – Issues and Challenges Center for the Study of Financial Innovation Roundtable, identified the challenges posed by technological innovation in financial and banking operations. The technological change caused financial innovation, cross border financial consolidation and the increasing demands of investors for better performance have had a profound effect on financial markets and institutions. Further he concurred:
The changing nature of financial activity is illustrated by development in credit derivatives markets. The availability of these instruments is enabling a change in the nature of banking itself towards business models based on origination and distribution rather than the retention of credit risk. The notional amount outstanding on CDS contracts globally reached trillion in 2005, up from billion in 1996. and the issuance of asset-backed securities in the UK, which involve parceling up and selling different claims on pools of assets such as costumer loans and mortgages, has risen to some 5 billion from .5 billion in 1995 (, 2006;5).
The banking and finance system of United Kingdom is vital in many points. The financial sector according to IMF report is a large contributor to domestic economic activity, and has a major international orientation. IMF reported: “In 2001, the financial sector contributed 5.2 percent of GDP, and net exports of insurance and financial services represented 1.3 percent of GDP (2003, p.13).” The four major U.K. – owned commercial banks accounted for about 24 percent of the resident banking activities in the U.K. Furthermore, it has a diversified set of claims against domestic and foreign counterparts. The insurance and pension funds account for nearly another third of the financial sector’s contribution to GDP and employment. The U.K. general insurance industry is the third largest in the world “accounting for about 10 percent of worldwide net premium income” and consists of insurance companies, the ’s insurance market, underwriters, brokers, and intermediaries.
In the last note, U.K’s recognizable ability to develop and adopt effective strategies and programs in making its finance and banking institutes grow is magnificent. However, even if U.K ‘s banks appear to be sufficiently lucrative and capitalized to be able to soak up, without systematic distress, the fatalities that might arise if the potential risks above were to crystallize, yet financial soundness indicators need to be interpreted with some caution. The unpredictability of issues and occurrences can cause fatal effect if and when no cautionary awareness held at hand. Hence, although financial and banking system of UK presents a development positive to the financial stability, we cannot assure the constancy of such progress if we have to stop reinventing and assessing the system.
A1. Examining U.K.’s banking and finance external environment using PESTLE analysis
In line with this project, let us examine the environment of banking and finance in U.K using analysis as a tool that can aid organizations to identify and understand the external environment in which they operate. The use of such method of analysis allows us to investigate systematically the external environment.
Using the analysis let us identify major external elements which affect the operations of banking and financing activities.
Political factors affect much the activities on banking and finance. The governmental system as well as the formulation of public regulations and policies regarding banking and finance are held primal to banks and finance institutions. For instance, the European Union aims to create a common financial market and the harmonization of their regulatory schemes. Such political design inhibits unhealthy competition between members of the group rather advance their collective interests. The attempt of political convergence may not be beneficial to all member of the union yet a minimal convergence can be produced out of such political design since differences sometimes create imbalances and conflict.
In the banking and finance industries of United Kingdom, the role of government and good governance are important. The making of national regulatory system, banking and finance laws, rules, and policies can be as important as the economy of the country. Government officials and law and policy making body play a crucial function in making the finance sector robust in its operations and services.
However, since the world today is no longer fragmented rather trying to bring each regions in close connection with other regions making them as one and homogenous, the trends now are no longer set in a national, local, or regional level but in a global view. Hence, United Kingdom with its distinctive and effective laws, regulations, and policies on banking and finance system considered the effects of global trends wherein a more adaptive and strategic policies and laws on finance are employed. Such ordinance dictates by the global circumstance, make the United Kingdom’s banking and finance institutions create enhancement strategies and techniques on how to maintain a financial stability most especially in the banking operations.
The Socio-economic factor is an external element in which any business organizations and institutions should be aware of. The social issues present in one’s society are substantive elements in which affects all human fields of interaction. Thereby, issues concerning culture, human behavior and expectations elicit a need for social reengineering. On the other hand, economic status and its given system can be deterrent for development if and when no proper economic programs and policies are employed.
In any business organizations or financial institutions such social-economic factor are vital to consider. The importance to see the need for social and economic growth should be constant. In banking and finance system of United Kingdom, various programs and services are offered to customers in order to satisfy their social and economic needs. For example of financial system programs in which United Kingdom offers are the insurance, security and payment systems supervision. These programs with global policies offered its customers and beneficiaries a higher social and economic status.
The technological factor as external to the environment of banking and finance operations should be considered. The entrance of internet to the public world drastically creates a technological change. In the article of entitled: , he articulated how technology changes the process of banking system in the United Kingdom. The impact of technological change costs for the UK clearing banks’ method of payment:
The methods of making payments in the UK have shifted considerably during the 1990s with a strong trend towards automated settlement and away from paper transactions. This trend is expected to continue into the 21st century, with major gains being achieved in bank profitability as customers move from high cost transactions, such as cheques, to low cost methods of payment such as debit cards. It is estimated (by) that almost half the 60 000 staff employed by the UK clearing banks is currently linked to money transmission services, with an annual cost of operating the system of approximately 4.5 billion pounds (, 2001;3-4)
This statement propose a clear understanding on how powerful technology is. Moreover, technology posses a dominant force in which powerfully dictates the trends in a global perspective. With this issue UK in its adherence and subjection to the global trends strategically position its banking and finance system on a place which it can be more effective and attractive not only on the local, regional or national level but to the international community as well.
Here, other factors can be relevant for this analysis. The environmental and legal factors are potentially creates friction which attract attention from responsible individuals within an organization. In the banking and finance system of United Kingdom, the legalities concerning policies and regulations covered the finance and banks institutions are subject to the government authorities, political parties, and policy making bodies. Environmental issues are not only a responsibility of any civic organizations but of everyone being encouraged and invited to participate in environmental programs.
A.2. ’s five forces: Identifying the location of power within an organization
The ’s five forces are effective tool in identifying and assessing the power positioning located in the organizational structure. Using this method, let us examine the power location in the UK‘s banking and finance system. This analysis is contrary to the method in which this aids us to see the internalities of organization’s environment.
In this analysis we are bringing five important forces that determine competitive power in a situation, namely: supplier power, buyer power, and competitive rivalry, threat of substitution and threat of new entry. In s’ article entitle: : ? Investigated the evolution of UK’s financial system schemes and operations starting from a bank-oriented phase via a market-oriented era through the present securitized system symbolized the struggle to maintain and balance the power it acquired. One important feature in the evolution of UK’s financial system was the financial liberalization. Financial liberalization espoused by the government attracts international business into London. However, domestic financial markets remained heavily controlled in order to maintain the macroeconomic stability (2001) explained that the major consequence of financial liberalization has been the erosion of traditional barriers, or segmentation, between financial markets and institutions. “The convergence and integration of financial markets facilitated a new round of innovation which led to the introduction of a whole array of financial products and services.” Furthermore, (1992; 465) in explaining that “the Financial Services Act of 1986 polarized distribution channels, which encouraged a variety of institutions to ‘tie’ themselves to insurance companies to sell contractual investment products, such as life insurance and pension.” Again quoting (1992) by:
“The transformation of the financial system turned it into an engine of economic growth for the regional economy of London and the southeast of England. Yet, the polarization of financial power in one region meant that other regions were largely excluded from the benefits of financial liberalization.
The overheating of the economy has been attributed to the liberalization of financial markets and the fact that liberalization has made the financial system more open to the destabilizing effects of shocks to the international financial system.
The approach taken by regulators considered the degree of competition in banking too low to permit a satisfactory performance. In a certain sense regulators followed the structure-conduct-performance paradigm connecting free competition to a structure where the legal and administrative constraints were absent. The deregulation system has at least three characteristics in competition: the abolishing of regulatory constraints on the birth of new banks and on the creation of new branches, the opening up to foreign competition and the abandoning of the forced specialization between commercial banks and organized markets.
Recent work drawing on the industrial organization approach confirms that the banking sector possesses the idiosyncratic features of an imperfect market. Due to the product differentiation, consumers do not retort to low price differentials, long-term relationships favor consumers’ capture by banks, geographical market fragmentation has important implication for branching, the low number of banks favors collusive behavior, weak bankruptcy and hostile takeover threats lower the pressure on managers to productive efficiency.
Henceforth, we see how the forces affect the internal structure or environment of a certain institution. The rise of threats, competition and product or system substitution became an internal issue in which institution like banks and finance entities should be aware of. In United Kingdom, the technological advancement and global business policies and financial systems became more relevant in its own financial regulations as being set a while ago. Such responses like liberalization and deregulations were product of the intense demands of the foreign and global policies. This somehow polarizes market differentiation instead of unifying them into strong and unified markets.
A.3 Opportunities and Threats
One of the most fertile fields of analysis opened by and the and the economists is the study of the relations between banks and economic activity. For , banks played a key position in the shift of the economic system from a lower to a higher level of economic activity. On the other hand, the approach to banking and financial intermediation in business-cycle fluctuations views the banking system as a conduit through which agents’ perceptions of risks, and hence, business-cycle fluctuations, both influence and are strongly influenced by non-probabilistic uncertainty (, n.d. p. 3).
Given such knowledge on the role of banking and finance institutions, we can identify various opportunities as well as threats of the banking and finance system. The opportunities range from the basic services provided by banking institutions like lending, deposit schemes, loaning programs, and business financial assistance. Likewise, the most significant threats to the banking and financial institutions are the rapid changes in technology and consumers’ behavior. Thus, it provides a way of changing functions and processes. Many observers are prophesying the terminal decline of commercial banks and their long-standing deposit taking and loan functions. The information technology revolution brought a significant influence on the banks and the constant changing of trends would somehow be a perennial threat to the banking and finance system.
A.4 Problems in the United Kingdom’s banking industry
In the 2002 article published online by entitled: : is monopolistic and needs radical reform, posed UK’s prevailing problems with regards to handling financial system’s regulations and rules. advised the government to bring to an end an auxiliary consolidation in the banking sector, in contention that the personal current account and small and medium-sized markets are already too concerted. For example, the takeover of NatWest bank by the Royal Bank of Scotland hoisted grave concerns. He further accused the four major banks of “abusing their position at the core of the UK banking systems to make excessive profits at the expense of retail and business customers.” His investigation on three areas like money transmission, services to personal customers, and services to small and medium sized businesses, revealed an evidence of competition problems ascribed to the high degree of concentration of market power in the hands of four giant banks. Such monopolistic and power control gives them the dominance in running interbank payments systems which handle all the cheque credit card and debit card transactions in the country with the “result that they are inflexible and hard to newcomers to penetrate, as well as failing to keep pace with the demands of e-commerce.” This showed the state condition of the banking industry in United Kingdom.
Moreover, in the article of entitled: , underlined the increasing competition and price competitiveness in the national and international markets. Such intense competition of the recent years affected banking sector and subsequently set fire for challenges. The reorganization processes are a reaction to the fact that banks have lost their leadership position in the traditional markets, and particularly to the impact of technological innovation. and argued:
In the last decade, market conditions in banking have undergone deep changes. On the demand side, customer preferences differ greatly from the traditional bank products (loans and savings). On the supply side, the globalization of financial markets is accompanied by their governmental deregulation. Both factors imply an increase in the number of competitors, followed by reductions in costs and narrowing of profit margins. Thereby, banks are faced with strong competition from non-banking companies, which also accentuates the competition between the banks themselves (2002, p. 46-47).
Under the pressure of intense competition, banks reacted differently on how they will resolve such problematic challenge. Some of them aims of rapidly improving profits, increased the income obtained from free based business activities or have ventured into high-risk segments such as security derivatives.
A.5 Global Trends on Banking
Today many people are no less mortgaged to their bank, yet the notion of the bank as the commercial epicenter of a community is as much a part of history. The enormous and far-reaching developments in banking had a blurring of demarcations between different types of banking and financial industry activity (2002). Moreover, in the speech of (2005) underscored various trends in global banking. The trend from deposit banking to financial services, from balance sheet to off-balance sheet intermediation, from capital adequacy to capital efficiency, from physical to virtual distribution, from fragmentation to consolidation, and from data to information to knowledge, are global trends in banking and finance. Moreover, in the research done by the IBM Company sets out five emerging trends to reshape global banking. First, Customers take control. Customers will only be interested in service providers that can meet their very specific individual needs. Second, specialized niche competitors imply market consolidation will continue, making the giant banks even bigger. Third, is a new workforce. The need for productivity and efficiency will create new labor and work practices yet intense competition still constant. Fourth, the need to comply with globally enforced standards of transparency and accountability will force the adoption by banks of integrated, enterprise-wide systems and processes. Lastly, the role of technology will still be main agent for transformation and rapid changes in trends and innovation .
These global trends in banking only concurs a simple realization that in order to maintain the status and power of some traditional huge banks, the efficient measures and effective strategies in order to be adoptive and adjust to the global trends should and must be employed.
B. Lloyds Bank: Its strengths and weaknesses
A further response to the intense competition in the global banking and finance business affected the traditional modes of financing and banking system in most of the countries, especially in United Kingdom. (1996) in his article in the articulated the wave of takeover and merger activity between banks and building societies. One of UK’s finest and influential banks which took such trend is the Lloyds Bank merging with the Trustee Savings Bank. The creation of was the beginning of a large scale consolidation in the UK banking market. The merging of two giant banks paved the way towards successes, strengthening its services and finance provisions to its customers and clients. The consolidation of brought a powerful financial system and banking operations in which extend its programs not only on providing financial services but also insurance plans. The group acquired , a mutual life insurance company which made the group the second largest provider of life insurance and pensions in the UK. Moreover, Lloyds TSB acquired Chartered Trust from the Standard Chartered Bank to form Lloyds TSB Asset Finance Division which provides motor, retail, and personal finance in the UK. Lloyds has been investing heavily in its wholesale and international banking division, which put a strong performance, driven by corporate markets.
However, although, quite impressive was the performance showed by the consolidation of Lloyds TSB, we cannot escape the fact that it has its own weaknesses to deal with. (2005) article The Business: Lloyds TSB Needs to Rethink Radically Its System of Staff Incentives, Which Has Led to Customers Being Persuaded to Take out Loans They Can’t Afford, critiqued Lloyds internal management in dealing with its system of staff incentives in which believed to trick its costumers. The rhetorical actuations used by Lloyds TSB in attracting clients were criticized for its being unfair with the clients. Hosking cited the expose made by the BBC on the “irresponsible lending practices” at Lloyds TSB.
Monday night’s BBC1 expose of irresponsible lending practices at Lloyds TSB revealed how the high-street bank badgered a couple into taking on [pounds sterling] 100,000 of debt, which they could ill afford to repay. The man was unemployed and mentally ill. The woman was a low-paid, part-time nursing home assistant.
Hosking continued to criticize Lloyds and other banks that treading on dangerous ground in offering staff incentives. Many products such as pensions, life assurance and payment protection insurance do not sell themselves. “They have to be pushed actively.” However, Hosking reiterated the danger of subscribing into such operations. Such merchandising shift scheme resulted to its forceful pay out of 100 million pounds sterling in fines and compensation for mis-selling high-yield bonds. Hence, rethinking of proper methodical systems which both beneficial to clients and banks’ growth should be reviewed and constantly reassess or reevaluate.
Now, let us understand the whole issue on the global perspective in which the real strength of the bank is its ability to put together innovative customized solutions to strategic problems. Such solutions are based on an intimate knowledge of the client and long-standing trust on both sides. Hence, it is innovation, expertise, and relationships which differentiate banks from their competitors.
C. Consumer Behavior
(2002) provided new forms of distribution in financial services in response to emerging behavior of consumers. He rationalized that financial sector is undergoing a process of radical transformation as a result of increasing competition and changes in the purchasing habits of customers.
There is also a shift in perception by customers of the products and services offered and the value they place on them. For example, customers are much more focused on the type of account and service that they want and how they use it. This trend has been targeted by building societies offering current or cheque accounts and various levels of access to funds, thereby increasing the pressure on banks (p. 8).
In this environment the development of new distribution channels has become a key strategy in improving value added and satisfying customer requirements.
Customers’ behavior towards new ways of banking transactions and processes are varied and differentiated to some extent. The due reason for this is the fact that individuals perceive changes in different perspectives and treat new technological advancement as not a matter of choice but a necessity. For financial institutions such technologies as direct deposit, automated teller machines and debit cards can speed processing and reduce costs. Other services such as computer banking and store-value payroll cards are viewed as ways to retain existing customers and attract unbanked and underbanked consumers (, 2003).
There are direct observable influences which affect the behavior of consumers directly link to banking. Even in various areas of business operations, consumers manifest different behaviors depending on the products being promoted and serviced. In banking behavior some notable influences can be incurred as vital in understanding consumers’ behavioral accent. The demographic, economic, marketing-mix and situational factors are direct observable influences that can be determined in banking behavior of consumers. Moreover, there are inferred influences which affect consumers’ behavior. The internal and external influences varied accordingly. In human behavior system, the internal influences can be attributed to perception towards the products and services offer, motivation, lifestyle view, personality, learning process and attitude. The external influences are family, affiliation/reference group, social class, culture and sub-culture.
Hence, since human behavior towards products appreciation are varied and differentiated accordingly, we can incur that concrete identification of specific behavior towards banking and finance services are blurring due to variance of reactions of individuals. Moreover, the inferential and observable influences are clear yet, as to the specifications of consumers’ behavior towards appreciation on products and services provided by banking and finance institutions cannot be outline one by one.
D. Marketing-Mix
It is not an easy task to identify areas of marketing in which we can make have a strategic implementation of programs in order to bring back returns and turnovers. The drawbacks in the banking and finance operations are not interjections of a single or homogenous body of currents, but are interrelated fields, heterogeneous in nature, which affect the whole stream of banking and financing process. In this sense, what we can provide is more or less a theoretical recommendation as a medication for drawbacks in banking and finance operations in the UK.
The drawbacks of finance and banking system in UK can be medicated through a strenuous yet positively and effectively help streamline finance strategies and banking operations. The proper evaluation of current trends, policies concerning banking and finance operations, government’s seriousness to design adoptable and friendly laws and regulations, and proper positioning and using of strategies. These factors can be considered relevant to the marketing-mix of banking process. The use of proper instruments and channels in order to promote and advance the programs of banking and finance are imperative. The economic robustness of certain business entity can be attributed to the effective use of media as channels of promotion. Whatever kind of media instruments can effectively develop and promote programs. Such relevance in the present scenario considered as vital yet crucial.
Hence, marketing-mix of UK’s banking and finance institutions should reconsider the utilization of various media instruments to further advance and promote its programs to consumers. It is very important that consumers enable to re-appreciate the worth of banking in their endeavors. Although, technology provides efficient service and easy way of transactions, still, the need of making consumers’ behaviors friendly to the services and products offerings of banking and finance programs are exceptional.
Conclusion
This paper seeks to analyze the prevailing problem occurring in the banking and finance institutions in United Kingdom. By allowing ourselves to immerse in important points like understanding the financial market, banking systems and marketing-mix, we enabled to concoct clear analysis on the issue regarding the external and internal environment of the banking and finance industries of UK.
Moreover, employing different methodologies to analysis these issues like five forces and the analysis, we able to understand the deep-seated problems on financial institutions and banking system in United Kingdom. Thus issued certain suggestions and recommendations to amend and medicate the prevailing concerns.
Henceforth, we come to identify vital causes which affect the banking and finance landscape of United Kingdom. The emergence of new technology, global innovation and new strategic modes brought the attention of managers, analysts, experts and theorists to analyze the internalities and externalities environment of organizations or institutions in which can able to respond and adjust itself to these concurrent trends.
References:
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