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The Future of Relationship Banking

In: Strategic Challenges in European Banking

Author

Listed:
  • Göran Bergendahl
  • Ted Lindblom

Abstract

Relationship banking is not a new phenomenon. It has probably existed as long as bank institutions themselves. But the question has been asked whether it is possible to establish relations between organisations and individuals. According to Czepiel (1990) a consumer may find it difficult to relate to an organisation, since it is an abstract entity. Furthermore, the consumer may be insensible to the existence of a relationship with an organisation because of its asymmetrical nature. However, Storbacka (1994) argues that the connection between consumers and most service organisations meets the characteristics of the relationship concept: the connection between the two parties is mutually rewarding and there exists some kind of commitment to the relationship over time. Since banks may be regarded as service providers, there is apparently a foundation for relationship banking.

Suggested Citation

  • Göran Bergendahl & Ted Lindblom, 2000. "The Future of Relationship Banking," Palgrave Macmillan Books, in: Edward P M Gardener & Joe Falzon (ed.), Strategic Challenges in European Banking, chapter 7, pages 152-173, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37736-3_7
    DOI: 10.1057/9780230377363_7
    as

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