Does ethnic focus change how banks should implement customer relationship management?

Abstract

This paper describes the development of the ethnic banking market in the UK. It describes the main ethnic groups involved and how they manage their relationships with banks, whether as individuals, families or small businesses. It analyses the problems ethnic customers have in dealing with banks and the gaps that emerge between them and their banking providers. In addition the paper analyses what banks have done to bridge the gap, with a brief comparison with the situation in the United States. The paper then suggests which areas banks need to focus on in order to improve management of their ethnic customers, and concludes by suggesting that given the rapidly growing size and value of the ethnic segments, banks would do well to undertake an ethnic banking audit.