Finance Review

April, 2007

Customer segmentation: build up future competitive advantage for retail banks

As China’s financial industry is gradually opened up and the competition on domestic financial market intensifies, more and more commercial banks in China are paying closer attention to retail banking and take it as an important momentum for future development. At the same time, the retail banking market is rapidly growing, providing more opportunities for commercial banks. Yet, a large number of banks are challenged by how to build competitiveness in retail banking. In this case, Roland Berger Strategy Consultants thinks that customer segmentation is an important solution to help these banks develop retail business, and that establishing a customer-oriented concept through customer segmentation will be critical for domestic financial institutions to form new competitive advantages.

I. Significance of implementing customer segmentation for retail banking

II. Models for implementing customer segmentation

III. Strategy for successfully implementing customer segmentation management