The paper resumes the considerations on the internal determinants of the choice of marketing strategy in Polish retail banks. In the April 2001 issue of "Bank i Kredyt", the role of banks' financial resources was analysed; the present paper deals with material assets and human resources. The author seeks to capture the relationship between the size and quality of those assets and the marketing activities of the banks.

With respect to the staffing levels in the banks under analysis one has to conclude that they are too high from the point of view of marketing strategy implementation (excluding in particular some of them, notably the cost leadership strategy). This fact becomes even more pronounced when we consider that the magnitude of the workforce by no means correspond with its quality in terms of either labour productivity or qualifications. In the five retail banks labour productivity measured as assets or profit per employee is alarmingly low - lower than sector average and much below the levels achieved by banks in most European countries.

Other factors potentially impairing a bank's capacity to implement various marketing strategies (particularly those where the competitive advantage is built on the quality of banking products and customer service) include staff dissatisfaction with the working conditions, remuneration, or career prospects. Other obstacles are posed by the lack of sophisticated performance-related incentive systems, inadequate training system and high staff turnover in the banking sector.

The banks in question boast an extensive network of branches, at least in Polish terms, which constitutes a major advantage from the point of view of marketing strategy. In almost every bank analysed, a positive trend towards reducing the average number of staff per branch has been noted.

At the same time, although the ATM network is expanding fast, it remains too limited in relation to customers' demand. This may again inhibit marketing activities, especially in the field of payments (current accounts and the products related to them, their prices) and the development of multi-channel distribution strategy for banking products.

An important barrier to retail banks' marketing activities is the insufficient technology infrastructure, in particular with respect to centralised computer systems. Market segmentation is thus rendered difficult or even impossible; so is continuous adjustment of product, pricing, distribution etc. policies in response to the ever-changing customer requirements.

Some banks earmark an excessive portion of their profits to investment in computer technology in the respective years, which may jeopardize the implementation of their medium-term development strategies. Even worse, the resources are not expended very rationally as many banks lack a clear strategy of IT development. This strategy should be part of the general business strategy; only then would technology investment help improve efficiency and reduce costs. As it is, marketing activities may suffer, especially those relating to distribution policy (the development of electronic banking etc.).