Hi Anna,

We could answer in the classical way:

do these new channels reduce costs?

do these new costs help to differentiate each banks from competitors (not all the banks use the new channels in the same way)?

do these new channels suppose a diversification of the bank activities (i.e. with the bank app you can buy theater tickets)?

If any of the answers to those questions is yes (in a profitable way), I will say that to increase the channels to connect with the client is effective.

Thanks!

As in your answer you worte "in the classical way", then You may mean it can be a "non classical way" to answer and in this case, which could it be?

Anna,

I meant, from the usual approach to annalyse firm's strategy (product differentation, costs strategy, firm's diversification).

However, I feel that it can be considered from additional points of view. For instance:

1.- Competition among firm channels: Do new channels help to increase the clientele or just cannibalize other channels?

2.- Helping new competitors: At the extent that new channels (apps, websites..) are accepted and popular, entry costs for new banks will reduce (the case of ING in most European countries is a good example, I think) as well as new financial service providers (for instance to acess your own stock exchange broker). So, implementation of new channels by the incumbent banks can increase knowledge and expertise on their client base, facilitating the entry of new players in their market, even non-financial ones (paypal, google wallet, ...).

3.- Contributing to the data generation that can be used by other firms: Mobile devices are a huge source of data from their users. One your client has upoloaded the bank app in his/her cell phone, other agents (not only the bank) may have info about your clients. Who will do the best use of all the generated information: the bank or the other app providers?

4.- A new channel differentiates the product of the bank (the financial product and the services of that channel). Is the bank ready to compete in these two dimmensions? At what extent are client preferences/tastes for them linked?

A multi-channel strategy is not only effective but truly necessary, given the inescapable reality of Internet Banking and greater mobility of customers.

Fernando,

Many thanks ! I think you got straight to the point. I wonder if at the moment are there any contributions on the point 3 you mentioned (the use of data from other agents) and 4 (are banks ready for the 2 dimensions) ?

Roberto,

Many thanks. You are right but I would also add that the present situation is a kind of picture that reflects the necessary approach to a bank multichannel strategy, that in a nutshell it isn't always very much customer oriented.

Anna,

I am afraid I cannot provide any reference of public studies that have dealt with those questions.

Roberto,

many thanks!

Fernando,

I appreciate your interest! Again, thanks!

Hello,

I am doing a school paper on similar topic, can I ask the experties here few questions?

Is it sounds reasonable if the banks utilize the multichannel to advance their in-bank services like let customer reserve the service counter right before their arrive or let customer know by when they need to arrive the bank without waiting.

At the same time, credit card users can also received sales or promotion information when they enter the shopping malls that having the promotion program with the Bank's issue credit cards.

Is it sounds reasonable? Moreover, I am thinking about the feasibility of microfinance for developing countries, given mobiles can easily reach these area these day.

Any comments? Thanks in advance.

Best Regards,

Ay Wan

Hi Ay,

many thanks for your question!

I think it is reasonable all you said. But from saying to developing it sometimes there is in between a lot of space!

It is a question of educating customers to different ways of using and doing their banking. I also think it can be easier for developing countries as, in some situations, there is not an old story of relationship between banks and the customers.

I'd be happy, if you want and when your paper will be finished, to read it with much interest!

Best regards,

Anna

Dear Anna,

Thanks for point it out. Educting customer is also an important part.

I have to enlarge my scope so make my paper being more feasible and user friendly for people who have different education background and banking experiance.

Have a nice day and weekend!

Best Regards,

Ay Wan :)

I'm pleased to be of some help for you!

There are really two questions in your question.

The multichannel strategy is a customer-oriented issue: how to best serve clients through a variety of distribution channels (brick and mortar, general vs specialized branches, internet, mobile phones, etc.).

The second question is how banks can use the digital technology for their own needs, either customer-related (data mining, customer segmentation, cloud storage of customer data, etc.) or not (risk management, reporting, etc.).

Best regards

Dear Jean-Paul,

You are right.

Both the issues mentioned belong to the same strategic root! I agree.

Many thanks for you contribution.

Best regards,

https://www.researchgate.net/publication/287162366_Transaction_Banking_Services_The_Case_of_Bangladesh?ev=prf_pub

Book Transaction Banking Services: The Case of Bangladesh

Hi Nabila,

many thanks for your interesting book! I do agree in terms of long-term vision in bank customer relationships eventhough sometimes banks seem not to be so keen to fullfil this issue. And I do also agree when you write it's their duty to meet customer expectation especially when customers are difficult to retain. Kind regards

Anna

I have always found a scorecard approach best for performance effectiveness measures:

Does the multi-channel strategy contribute substantially to revenues, cash flows, and profits of the bank?

Does it contribute to better customer experience, faster delivery to customers? Is it seen by customers of the bank as useful or novel?

Does it improve internal processes within banks? Does it reduce costs or efforts? Is it easier for employees to introduce and implement new products?

Does it contribute to learning within the organization? Does it enable the bank to innovate/ develop new markets or products?

I do think all these perspectives should be integrated.

Many thanks for your message.

I fully agree when you say "all these perspectives should be integrated". It's right becasue multi-channel strategy is the core strategy for a bank. And this is because it develops the links towards the banks customers. And this link can be weak or strong and becomes a weakness or a strenght according to the effective way the bank plan and execute its multichannel strategy. In addition, at present, all this is more then critical as the digital transformation is putting bank in front of a critical decision, which is to transform the way it's going to do its banking.