Comparative Analysis of the Growth Retail Banking on UK

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In this study we try to explore the concept of “retail banking” in a holistic context. The main focus of the research is on “retail banking in UK”. The research also analyzes many aspects and ways in which retail banking contributes to economy of UK. The study provides description about the retail industry operating in United Kingdom. It also gives an idea about the function performed by the retail banking sector. The study also includes different economic factors that affect the growth of retail banking industry in United Kingdom. The study also covers the driving forces of retail banking such as: Completion, cost reduction, communication and customer's behaviour. Furthermore, the research analysis the financial position of HSBC Plc and the comparative growth of the bank from2008 to 2009. In addition to this, the research provides recommendations and implications to improve the performance of retail banks.

TABLE OF CONTENTS

ACKNOWLEDGEMENT2

DECLARATION3

ABSTRACT4

CHAPTER 1: INTRODUCTION10

1.1 Introduction10

1.2 Research Background10

1.3 Introduction of the Research12

1.4 Aims of the Research14

1.4 Objectives of the Research14

1.5 Importance of the Study14

1.5.1 Compare the growth among Britain's bank based on financial statement15

1.5.2 Measure and analysis of growth of Britain's bank based on financial statement15

1.6 Rationale16

1.7 Research Questions16

1.8 Problem Statement17

1.9 Bank Profile17

1.10 Role of HSBC in Retail Banking19

1.11 HSBC Personal Banking20

1.11.1 HSBC Premier21

1.11.2 HSBC Advance21

1.11.3 Bank Account Pay Monthly22

1.11.4 HSBC Passport Account23

1.11.5 Amanah Bank Account23

1.11.6 Student Account23

1.11.7 Graduates Account24

1.11.8 My Money Account24

1.11.9 Basic Bank Account24

1.11.10 HSBC Saving25

1.11.11 HSBC Investments25

1.11.12 HSBC Insurance26

1.12 HSBC Business and Corporate27

1.13 Primary competitors HSBC Bank in the UK retail banking28

1.14 Organisation of the paper28

1.15 Summary29

CHAPTER 2: LITERATURE REVIEW30

2.1 Introduction30

2.2 Retail banking30

2.3 Retail Banking in UK32

2.4 Driving Factors of Retail Banking in the UK33

2.4.1 Competition33

2.4.2 Cost reduction34

2.4.3 Communication and marketing characteristics36

2.5.4 Customer's attitude and behaviour37

2.5 The Impact of Reforms on Financial Sector Performance38

2.6 Financial Deepening38

2.7 Market Concentration40

2.8 Contribution of Retail Banking in the Economy40

2.8.1 Transmission of saving into investment40

2.8.2 Make national and International Payments41

2.8.3 Collect the money and utilize in the productive sectors341

2.9 Economic forces that are affecting in the growth of UK retail banking41

2.9.1 Economic environment of the UK42

2.9.2 Interest Rate42

2.9.3 Government policy and regulation44

2.10 Government new regulations for the UK financial institutions44

2.10.1 Financial Policy Committee46

2.11.2 Prudential Regulation Authority46

2.10.3 Consumer Protection and Market Authority46

2.10.4 Services Economics Crime Agency46

2.11 Issues and Challenges in UK retail banking46

2.12 Measurement of growth of retailing banking48

2.12.1 Choice of Growth Indicators49

2.12.2 Choice of the studies time period49

2.12.3 The choice of calculation (different tools to measure and analyze growth)50

2.13 Financial Model to Examine Growth of retail banking50

2.13.1 Income ...