Froxe United States

The following data have been gathered by Capgemini and are part of the World Retail Banking Report published annually in March.

Macro economic indicators (2006)

GDP at current prices	$13,225 billion
Inhabitants	299.7 million
GDP per head	$44,071
Economic growth rate	+3.3%
Consumer confidence indicator	99.6
Unemployment rate	4.7%
Consumer Price Index	4.0%
Banking Importance	20.8%
Number of branches	92,000
Number of ATMs	420,000
Households savings ratio	0.5%
Inflation rate	+3.2%
Interest rate, consumer credit	13.21%
Interest rate, residential	6.22%
Number of credit cards	1,46 billion

Type and size of players

Total Banking Income and Cost/Income Ratio
(Operating Expenses/Total Banking Income)

Products

U.S. retail banking market is highly fragmented. This is illustrated by the fact that the top 10 U.S. Banks held only about 36% of the market share based on total U.S. deposits.

Total Deposits in US$ (31.12.2006 )

Trends

Customer Experience
• Banks are beginning to design products that cross customer silos:
- Customers in the past have had varying experiences and disparities in service quality across channels (branch, phone, internet) and across products (mortgage, etc.)
- Banks are beginning to improve and align processes like product applications and cross-selling
• Interactive products are increasing as customers become more comfortable using the internet:
- Banks expected to offer new products geared towards online self-service interactions
• Branch locations are increasing in number and being renovated:
- Self-service channels (ATM, phone, internet) are not effective for customer acquisition and cross-selling
- Branch locations are to be used as sales platforms by leveraging retail practices such as product displays, merchandising and layouts (demographic targeting)

Marketing / Target Products
• Faced with strong competition, banks are becoming more proactive with their marketing initiatives:
- Customer acquisition strategies being replaced by efforts to cross-sell products and services with marketing campaigns around specific customer interactions
• Continued investment in non-core product offerings:
- In redefining their marketing strategies, banks remain attracted to products traditionally offered by Financial Services companies
• Competition with Financial Services firms for retirement assets:
- Banks are marketing 401K programs to corporations in order to gain access to their employees in expectation of cross-selling other products and services

M&A Overload
• Recent acquisitions have resulted in some large banks having huge asset totals that must be earning returns for investors:
- Heated competition and sophistication in targeting loan offers to consumers