Determinants of Customisation of the Retail Banking Market

This paper discusses the issues of personalization of banking offers, specialy the factors determining the direction of the customization process and the prospects for its development in the retail banking market. In connection with the rapidly developing digitalization process, new competitive conditions are emerging that encourage banks to apply new approaches to strategic management in their operations. Until recently, the most common approach in strategic management was commoditization. However, in the conditions of digitalization, a customized approach is considered as a more efficient tool. Thus, in today's competitive environment, the identification of determinants of customization of banking products and services is an interesting area of ​​research. The purpose of this study is to identify the most significant factors affecting the personalization of retail banking services, in particular their impact on the share of banking offers that the bank is ready to provide on a customized basis. Through an analysis of foreign case studies and domestic customized banking projects, the most popular ways of customizing banking offers were identified and the conditions under which they were applied were analyzed. Revealed a high degree of automation. This was a supporting basis for the hypothesis that digitalization is the main source of customization in the retail banking market.