Page 214 - Flip Banks TG

TSB finds itself in a market dominated by big

names. It will be difficult for it to succeed
without some aid or government intervention.
While banks employ differentiated marketing,
the underlying business model has much in TSB has like other banks few
common: customers have limited choice suppliers. Its IT system is a
between banks whose imitative models are legacy one, not built specifically
characterised by opacity, confusion, cross- for it, which it planned to replace
subsidy and cross-selling (including mis- with its parent company’s one.
selling).

There are many other alternatives
to TSB both traditional big banks
TSB has many individuals as and other challenger ones.
buyers which makes them
particularly powerless. They do
not have a great deal of
differentiation to choose from in
the market.

Diagram 1