Advantages And Disadvantages Of Multichannel Banking

Most new entrants are technology firms of all sizes that are looking revolutionize the banking industry as they revolutionized almost all major industries in the past 15 years. These firms apply concepts such as artificial intelligence and 24/7 connectivity to create innovative ways of performing tailored banking operations at lower cost and with greater convenience for the consumer. Retail banks however have an opportunity to maintain relevancy over the upcoming decade, but in order to do so they must harness technology either through in house innovation or partnerships to accentuate they’re current competitive advantages such as personalized

Channelization: It has excellent system of internal control over the employees. It is a good way to achieve efficiency in their work. This process in running the operations of the bank as each work in being carried out in a smooth process. The employees which are working on the counters have authorizer and again there is an in charge which is looking the work of authorizer. So there is chain of command which enables bank to reduce or even eliminate the chances of Corruption. It also enables their Audit department to have an ease in their Audit.

Convenience way of operating banking transactions: Online banking is a highly profitable channel for financial institutions. It provides customers convenience and elasticity and can be provided at a lower cost than traditional branch banking (Williamson, 2006). The convenience of online banking is helping people gain greater control of their finances and contributing to changing patterns in cash withdrawal and day to day money management. (Beer, 2006)

Moreover, bank would able to enhance the usage of internet banking by adding more services as customers required. Other actors concerns, among banks, their customers will be delighted by improving their services to their own customers. Then, actors like supermarket, shopping complex also able to gain from the internet bank usage of customers since it reduce the cost of transaction, unnecessary rush in the counters and it will help them to provide better service to the

According to the most recent Federal Reserve study; most of us haven’t set foot in a banking hall in ages. It is a lost battle to banks that opt to use traditional methods to conduct their banking transactions (Gup 2003). By December of last year, close to half of all smartphone users in the United States had transacted some or all of their banking on their phones and iPhones. In the United Kingdom alone, rates of mobile banking transactions doubled over the course of a single year (Scn Education 2001). A banking business that invests in this type of technology gets assured of increasing their customer base.

As their name suggests, they only execute their operations online. Customers can only be in contact with their money over the internet since they do not have any physical branches. Because online-only banks require lower overhead costs, they have the capability to offer more free services and higher interest rates compared to a traditional bank. Online banking provides many customers the convenience of handling their business at any physical location as long as they have access to internet. This is possible because of the variety of services that online banks provide despite limiting interaction to only the internet. Some of their services include applying for loans online, transferring funds and paying bills online. While the convenience of being able to access banking through the internet is worthwhile, there are limits to it. For example, making large deposits to the bank is limited and can only be made through the mail, they don’t service cashier checks for transactions, and withdrawing money from the account is very inconvenient. Luckily, the role of the internet in financial transactions is becoming increasingly prominent so that spending money online is more accessible, but it is important to understand both the benefits as well as restraints of online banking. Nowadays, many large brick-and-mortar banks have caught on and provide some online services in attempts to

Banks that offer financial products and services through the Internet must be able to meet their customers’ expectations. Banks must also ensure they have the right product mix and capacity to deliver accurate, timely, and reliable services to develop a high level of confidence in the customers. Customers who do business over the Internet are likely to have little tolerance for errors or omissions from financial institutions that do not have sophisticated internal controls to manage their Internet banking business. Likewise, customers will expect continuous availability of the product and Web pages that are easy to navigate.

For example, in stead of payment by cash, transactions can be performed by credit or EFTPOS (Electronic Funds Transfer at Point of Sale) cards. Moreover, this is also a convenience for organizations to finacial management. 2.1.4. Technology 2013 is the year of five high-tech trends of banking industry, which are mobile, cloud, analytics, social, and cyber (Deloitee, 2013). This assignment just focuses on the first three technologies. Mobile banking is a service which customers can perform the transaction, check the balance, or have some feedback by their mobiles. The second applied technology is cloud computing. The US National Institute of Standards and Technology (NIST) formally defines cloud computing as "a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources – networks, servers, storage, applications and services – that can be rapidly provisioned and released with minimal management effort or service provider interaction." There are many advantages of cloud computing which are to use dynamic computing resources, reduce cost, and decrease complicated level in framework of organization, increase ability to use computing resources. By applying cloud computing, the third party will participate in the client experience, but not intervene in the client relationship of the bank. Analytics technology means that data needs to be kept secret to

People’s life style has changed drastically from 20 to 30 years ago where on the street corner you can pick a fruit or some newspaper or magazine. The living pace is faster than ever and it is not stopping every single day. Nowadays on the subway underground to air flight 10,000 feet above the ground, pedestrians walking down the street to drives at red light stop, the small screen on that smart cellphone has changed the way of living for everyone. Technology innovations may be a big part of it but also it has given the wings for traditional service industry to keep up with modern lives’ needs. As the blood of modern economic system, financial industry has also utilized the IT technology to help itself running through each tubes of this system faster than ever. That is the rise of digital banking.

With the smallest footprint of their three biggest competitors, the bank chose to differentiate their services based on mobile banking channels. These channels were more cost effective for both the bank and the customer which fit well with the bank’s philosophy of being the cheapest bank in South Africa and offered the opportunity for more margin absorption if they could change the customer’s behaviour towards these channels. By consequence, the choice to differentiate on mobile channels required competencies that relate to technology. Both of these choices required innovation; to make switching less cumbersome, exploitation of existing processes and technology was required, and to enhance their value proposition they required radical innovation. Over time, FNB’s strategic agility led to the deliberate incentivisation of customers to use mobile channels and the subsequent development of the “customer ecosystem” strategy.

. Mobile services not only offer a new, convenient channel for existing customers of banks, the technology will also provide access to 3 Bnstrong global unbanked population

Since the 1980’s, online banking has made the lives of everyday people more convenient. With the new innovations and creations to computers, online banking has grown to become the most used form of banking in the US (5). From the first ATM to mobile banking technology has helped shape One of the first computerized innovations to online banking, the credit card, revolutionized how cash was money was used in society.

o Technology: In a technology driven world, it is important that banks in the industry ‘move with the time’. With respect to the big four, these banks have now introduced internet and cell phone banking as well as banking from the ATM; making the industry highly competitive. This technology aims to make banking for the client simple and accessible from anywhere. This new technology is aimed, once again, at the medium to high-income earning clients, who have access to these technologies.

Develop Low touch Omni-channel for small business customers through: - Sky Branch, Business Banking App, Digital self -service and Start-up customer value proposition.

We have mention Branch and ATM network, Customer Service and Innovation as one of the key success factors for a bank, but all these will be unfruitful if there is no proper ICT platform to support them. To be able to take full advantage of the opportunities in the market and combat threats a bank must have an up to date strategically planned and implemented ICT infrastructure. In 2010 CRDB and NBC made entire bank systems upgrades, announcements were made on Radio, TV, Newspapers of the changes and their implication to the services offered. This is an example of organizations that have