A born and bred London marketer who loves being creative. Currently works in the Marketing team at BookingBug and can usually be found listening to music and moaning about Arsenal.

Breaking out of the silos: The challenges for retail banking


Historically, banks have been heavily siloed operations - the online team has goals and systems quite separate to the in-branch teams, regional managers, and other departments.

This results in a fractured core to the business, where motivations and views of the customer rarely align. Crucially, it’s holding banking back from creating the kind of customer experience other retailers have achieved. And all the while, people’s expectations are sky-rocketing.

The three key areas that are affected by the siloed approach are:

Organizational effectiveness

The lack of information flow either geographically, between departments or due to company hierarchy, significantly hampers the ability to move the business forward. Many departments can be working on similar projects or have cross-over that could enable innovation and time saving for employees if there is transparency within the organization.

The most high profile case of replicating workloads within companies came from Sony, who unknowingly had three departments working on personal MP3 players, and were pipped to the post by rivals Apple, costing the company millions.

Broken customer experience

The overall customer experience can really suffer as a result of a siloed company structure, where there are poor cross-department communications. An advertising campaign leads to a rush of calls, but the contact center was not informed of the impending campaign, so is understaffed and underprepared, leading to long wait times for frustrated customers and a waste of marketing spend.

A lack of communication between departments often means customers have to explain the reason for their interaction with the bank, which can lead to them moving to a competitor who demonstrates a coherent understanding of the customer and their journey.


Distracted staff

Working in a siloed company often leads to internal competition and politics that are detrimental to the growth and success of the bank. And with staff unable to see the wider company picture outside of their department or branch, each segmentation is working towards different goals that are important to the success of the individual department, but not the bank overall. Each silo is pulling in a different direction with little progression, rather than all pulling together towards a common goal.

There is an answer

So how does the retail bank overcome these problems and the many more posed by a siloed operation? Our latest white paper breaks down these issues and outlines ways to tackle them. Get your copy here!