Banks need to take a cue from retailers, reports Cisco’s consulting arm Internet Business Solutions Group. This means uniting consumers, merchants and banks to create the next evolution of commerce as a way to secure consumer loyalty.

Jim Greene, vice president of Cisco’s global financial services team, says banks must transform to make themselves relevant to customers.

“Transformation of banking isn’t being about becoming a better bank but creating consumer relevance,” he says. “Consumers expect to be self-enabled. Consumers want to be armed with tools that allow them to do what banks do.”

He cites Amazon as a great example of a company bringing this evolution of commerce to the table. For example, if a consumer buys a CD, the company generates a list of other CDs he or she may like, too. Banks need to take this approach, suggests Greene.

One way to do this is utilizing social networks, he says, citing Umpqua Bank as the prototype of a financial institution taking on this retail approach well. Although it is “small in terms of banking,” Greene says Umpqua would be the calendar cover of “innovative institutions that delight customers and investors.”

I took a look at Umpqua’s web site to see what the big deal is. I have to say, I completely agree with Greene’s sentiments.

I may not bank with Umbqua, but I am in love with its business. Here is why:

For one, Umpqua Bank offers some innovative types of collections. Take its courier service, which sends a courier to consumers to pick up their deposits. Umpqua also boasts expressDeposit to simplify a consumer’s banking experience. The tool lets a consumer scan and send checks to his or her Umpqua Bank. Even better, the bank offers “BusinessTherapy,” which are small group sessions held at their stores.