The IEA's 10th anniversary Retail Banking in Europe conference provided an excellent opportunity for delegates & speakers, from over 30 different countries, to exchange their thoughts on the economic events taking place and the direction their industry must take. Both the regulator and bankers seemed to agree that we should not lose the universal banking model. However, we do need to see massive deleveraging of the whole economy - both by individuals and businesses.
Whilst the outlook is uncertain, there was a consensus that the economic climate will force banks to take a closer look at the way they run their businesses and the wisest among them will use it as an opportunity to innovate and make changes that will place them in good stead for the future. In particular, Sir Brian Pitman emphasised that banks must make more prudent decisions when seeking growth opportunities and only enter markets in which they have competitive advantage.
The issue of trust also emerged as a key theme. We look forward to next year's event to assess whether these critical changes have taken place and whether banks can reestablish their positions as trusted and safe institutions.
