So why could the retail banking 'institutionalised solution' be wrong?
Well, wrong is a little harsh. It's just archaic, inefficient and rather 'inside-out' and sooner or later, it will be replaced (although one must never underestimate the longevity of entrenched institutionalised solutions)
To answer this, let's go back to the simple magic wallet again. The problem with the current retail banking model is that it is still based in an old good-dominant logic of exchange (cue SD logic music now.... Vargo & Lusch 2004, 2008). They are still thinking that revenue (and therefore service) is created at the point of exchange- which is why Barclays, and so many products are doing all these customization, that could result in too many 'choices' problem.
Why is this untenable? because the business model is now becoming too challenging to maintain.