Abstract
With the understanding that a live branch transaction costs as much as ten times as much as a self-directed Internet-based transaction, the need to understand the relationships that exist between the various channels of service provision in financial services, particularly banking, becomes clear. Some providers have a passive view towards the management of the channel relationship, simply concentrating on making each channel operate as effectively as it can. Others have chosen to offer products solely through one channel, or to actively encourage customers to shift online. This report looks at the shifting balance in the marketplace, with a particular emphasis on consumer attitudes and behaviour.
There has often been a broad assumption that it' s the young and the affluent who are driving the trend towards online banking and product arrangement. While it' s true that the online population is skewed towards these groups, this report seeks to understand how the online community as a whole interacts with the financial services world - whether they are deserting the branch, how the telephone fits into their channel usage and what factors are preventing them from conducting more of their finances online.
As well as investigating the variation in behaviour across different age and social groups, this report provides background to the changing face of financial services distribution, as providers look to move from branch to telephone to broadband and - potentially - to the mobile phone. An overview of the growth in each of these channels is provided, and the advantages and disadvantages of each are assessed.
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