How are banks around the world maximizing the value of bank branch networks, strengthening customer loyalty, and differentiating value propositions in their chosen markets?

My colleague, Chris Gill, and I took a two-week tour to London, Amsterdam, Madrid, Dubai and Sydney to visit both banks and retailers, looking at branching strategy.

In London signs in the window a branch of one of the world’s largest retail banks touted offers identical to those I would find in Manhattan or Des Moines, like no fees in any transactions and “extended banking hours.” I thought to myself do these value propositions actually drive customer loyalty? Are they the best offers to differentiate a branch in the U.K.?

As I had to get pounds for the visit I was glad an ATM could be found so conveniently. The ATM clearly offered a much-higher degree of functionality than those found in the U.S., but a display read “out of service,” which I mentally translated to “no service, poor customer service.”

Walking around the corner, I thought about extended hours, 9:30 a.m. to 6 p.m. OK, but today was Sunday and they were closed. Apparently, banks here, like those back home, don’t think of themselves as retailers either. Most of the other retail stores were open.

Prior to checking into my hotel, I made a quick trip to a U.K. food retailer. I was taken by the difference in the check-out stand. No tabloids and no chocolate bars, instead there were brochures offering credit cards offered by the grocer-affiliated bank, with 0% interest and personal loans suggesting I can borrow £75,000 pounds for less than £150 per month. My interest would only be 6.9% from the grocer’s bank.

Now, we’ve all seen banks in grocery stores, but not obscuring the cashier like this and not promoting 'Grocer A' Bank, so I picked up the brochures. A few surprises in the loan brochure — an optional three-month repayment holiday, a credit “decision in minutes” and a “checque in 24 hours.” I could even get loan repayment protection in case of sickness or unemployment.

Looking at the credit card brochure, it was more of the same as in the U.S. — a “money-off voucher” to enjoy in the store when I sign up, a teaser rate in balance transfers and a “stylish card”.