Taking direct banking a step further
A first direct case study
Page 1: Introduction
This case study focuses on the recent process of change in the banking industry. Ten years ago, nearly all personal banking operations were carried out in High Street branches. If customers wanted to talk to a bank official about their financial arrangements, they had to queue or make an appointment. In terms of the customer/seller relationship, the power was very much in the hands of the ‘big banks’.
During the 1980s, ‘marketing’ became a major driving force for change in the way organisations operated. The new emphasis was to be on the customer and meeting customer needs. Organisations needed to re-organise in order to place the customer in the driving seat.
This case study examines how First Direct became the catalyst for change in the banking industry. From the beginning, First Direct has been breaking the mould of traditional banking and maintains a philosophy of providing and anticipating the financial services people require.
After carrying out market research, First Direct created telephone banking as the logical step to meeting customer requirements for personal service. This was to be the major breakthrough in marketing orientation that shook up the banking industry in the 1990s. Then, like other successful organisations, First Direct went on to introduce further changes in ever more sophisticated ways - most recently PC Banking.