chapter  6
28 Pages

Operating in a New Landscape

The banking industry is facing unprecedented changes in its competitive landscape. Banks will have to completely adapt their business models to survive in an environment where failures and exits are not going to be as exceptional as they used to be. The sequels of the worst financial crisis in eight decades will have extremely important implications for the competitive structure of the banking sector, for customer trust (anger, frustration, decline in loyalty), and for the behavior of banking authorities (regulatory, fiscal, etc.). But it would be unwise to consider the crisis and its sequels as the only factors shaping the future of the banking industry, as we have argued in the preceding chapters.