Bachelor thesis

Swiss banking industry : analysis of the positioning of traditional banks as fintech banks enter the market and customer behaviour changes

SONAR|HES-SO

  • Genève : Haute école de gestion de Genève

91 p.

Bachelor of Science HES in International Business Management: Haute école de gestion de Genève, 2023

English Traditional Swiss banks are currently under threat from the arrival of new competitors, fintech banks, whose business models are more about technology than banking. Newcomers are highly competitive and are putting pressure on traditional banks that are at the risk of losing market share and revenues. In addition, there have been major changes in customer behaviour, especially since the Covid-19 pandemic, with customers increasingly using banks' digital tools. The aim of this study is therefore to understand how traditional Swiss banks should position themselves in the market to remain competitive.

To achieve this, several types of data were collected. Firstly, secondary data were gathered to establish current knowledge of the subject. Secondly, primary data were collected in the form of a survey and an interview. These two methods were used to obtain the opinions of Swiss banks’ customers on digitalisation and also the views of traditional banks on their future.

The study confirmed that traditional banks need to reposition themselves. Indeed, their competitors offer more innovative solutions and more attractive prices. To achieve their new positioning, traditional banks will have to make more intensive use of technologies that enable fintech banks to overshadow them. In addition, thanks to their experience, knowledge of the banking industry and physical presence, traditional banks have undeniable advantages that they must take advantage of for the future. Finally, research has also shown that digitisation is not yet accepted by everyone.

In order to remain competitive in the banking industry, it is recommended that traditional banks adapt their positioning by using the marketing mix and its 7Ps. Traditional banks should reduce their fees and adapt them to those of fintech banks (Price) as well as making their services more flexible and customisable (Product). In addition, they should create better targeted advertising campaigns (Promotion) and develop their communication channels while maintaining their branches (Place). To better serve their customers, they should apply an omnichannel strategy and become more agile by using technology (Process). To move in the right direction, they should hire employees from the world of technology (People). Finally, they need to showcase their knowledge and experience of the sector in order to retain and attract customers (Physical evidence). To support these changes, they should also adapt their overall strategy with regards to digitalisation.
Language
  • English
Classification
Economics
Notes
  • Haute école de gestion Genève
  • International Business Management
  • hesso:hegge
Persistent URL
https://folia.unifr.ch/global/documents/327459
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