Will future banking become electronic banking

Electronic bank distribution channels



This section serves to gain an overview of the main contents and results of the investigation. He wants to give the reader a first glimpse into the work.

Status quo of electronic distribution channels

1. Technology as a key factor in the development of the distribution channel mix

"The branch loses its exclusive function for customer-related main service processes [...] self-service facilities and home banking via telecommunications are replacing today's service business in traditional branches" (Kuhn 1995, p. 172). Statements of this or a similar kind, which point to a profound change in the private customer business of the universal banks, are increasing. Above all, practice-oriented articles in various specialist journals take up this topic, not least under the impression of the technological development of electronic media such as online services or innovative communication terminals and their forms of use. Although technology is only seen as one influencing factor on the banking business among several, it is assigned a key function with regard to the future design of the distribution of banking products (cf. Bernet 1995, p. 28 ff.). Among other things, it determines the way in which the customer can communicate with the bank. Understanding the technological development of banking-relevant electronic media at the interface to the customer is therefore of great importance.

2. Banking Products and Electronic Distribution Channels: Definitions

This chapter defines the terms used in this work and at the same time creates a working definition of electronic distribution channels, on the basis of which the further investigation takes place. From the point of view that the type of products offered (e.g. measured by the complexity, the frequency of use by the consumer or the spatial flexibility in the use) is an essential determinant of the distribution system in service companies such as the bank (cf.Meffert / Bruhn 1995, p. 320 ff.), Important product-political terms for the work are first recorded. The characteristic features of banking products, in turn, are the starting point for the subsequent definition of the term electronic distribution channels. Another important distinction is made between the terms sales channel and sales concept.

3. Characterization of current electronic distribution channels

PC banking has so far been marketed mainly under the name home banking and in this context means telebanking via T-Online, Telekom's online service. In addition, there is occasionally, but of no great importance, the possibility of a direct connection between the customer and the bank. Dresdner Bank customers who have a PC and a modem can dial into the bank's network directly and carry out various current account services, such as account balance and turnover inquiries or transfers (Kerscher / Kreuzer 1994a, p. 19).

Technology forecast of electronic media at the bank-customer interface

4. The forecast method used

The core questions of Part II of the thesis follow the basic assumption that electronic bank distribution channels are to be considered as communication channels between bank and customer and thus the components of these channels must be the subject of consideration. The objective of a forecast of the technological development and design of the electronic bank-customer interface on the customer side is:
  • Which communication devices can be expected in terms of performance, functionality and distribution in private households (e.g. PC, smartphone, PDA mobile phone)?
  • Development and dissemination of online services
    • How is the number of participants in online services developing?
    • Which applications are developing into so-called key applications?
    • Which online services are gaining the greatest importance?
  • Technical design and distribution of self-service machines
    • Which self-service devices can be expected in the future (mono- and multifunctional machines)? How do these devices spread?
    • How widespread are banking services or banking products at self-service machines?

5. Factors influencing the development and spread of electronic media

The development of high-performance communication terminals and network infrastructures depends, among other things, on the further technological development of so-called key technologies or core technologies. These are included in the product when a service is created; so they have a direct effect on the performance of the product. Key technologies in the form of products or process innovations in turn ensure an increasing number of businesses that are becoming dominant (on the concept of technology and the manifestations of technologies, see Zahn 1995, p. 6 ff.).

6. Technological development paths in telebanking

Telebanking was defined in Chapter 2.3 as the possibility of handling banking transactions via communication terminals and remote data transmission paths to the bank. This definition implies that the existence or the technical design and the possibilities of communication terminals and transmission networks are of major importance for the future development of telebanking. In the following, therefore, forecasts for the future development and spread of telebanking access media are first described. In a further step, the future of narrow and broadband online services will be examined with regard to their distribution and the range of services they offer, in order to derive assumptions and consequences for the future technological design in telebanking from these forecasts.

7. Technological development paths in automated banking

Chapter 7 deals with the technology, distribution and use of self-service machines. With regard to the technical aspects, extensive expert discussions were held with various manufacturers1from which a clear picture of the technology and design of current and future machines emerged. Aspects of dissemination and application were determined via the Delphi survey. The aim is to outline the development of the various types of machines and their possible applications.

8. For the future implementation of electronic sales concepts

Tab. 19 initially shows current and future electronic sales channels and their options for implementing sales concepts.

Communication-specific problem areas in electronic sales and possible solutions

9. Factors influencing communication between bank and customer

After Part II dealt with the prognosis of the technological development of electronic sales channels, Part III deals with factors of their suitability for the sale of banking products as well as product- and sales-channel-related measures to increase the suitability. Chapter 9 first presents the main influencing factors on bank-customer communication, with the starting point for the following considerations being the characteristic properties of bank products as central objects of the sales system. Their characteristics were already decisive in Chapter 2 for the definition of electronic distribution channels.

10. The suitability of electronic sales concepts for the sale of banking products

From the customer's point of view, the main criterion for the sale of banking products via electronic media is the need for communication, which mainly results from the need for explanation of banking products and also from the negotiability and sensitivity to trust. Suchting uses the need for explanation of a banking product, which manifests itself in the level of economic education of the customer, among other things, with the level of demands placed on the quality of bank staff (Süchting 1991, p. 29). As the need for explanation increases with the customer, the demands on the bank employee for a successful transaction increase. Conversely, the chances for a successful use of electronic distribution channels are likely to be at least made more difficult. For the further course of the work, it can be assumed on the basis of the preceding explanations that the need for explanation from the perspective of the individual customer is the most important decision criterion in addition to the willingness to use electronic sales channels.

11. Range-specific solutions to reduce the need for communication

This chapter shows the basic structure of a range of banking products that is manageable in number and which should be able to cover as many basic needs of the customer as possible. In addition, the effects and the criteria for creating such a product range are described. Finally, trends in the specific development of selected banking products on the market are outlined.

12. To cover communication needs via electronic distribution channels

The previous explanations were implicitly limited largely to the concept of customer self-service and its possibilities for product sales. If you consider the potential of future development, electronic sales channels offer even more possibilities. The approaches of telephone advice of some institutes, which use this medium either as a direct marketing instrument or as a possibility for the customer for personal advice, show the first ways. In the future, video conferencing in particular should offer further alternatives in the advice-intensive business. The development of broadband transmission channels and the associated end devices will also offer a new quality in the presentation and sale of banking products via electronic distribution channels.

The integrated bank as an overarching target model

13. The idea of ​​integrating electronic and branch-based sales channels

The preceding sections have shown that the technological development of electronic media has the potential for far more applications in banking sales than is the case today. The large number of communication terminals, the increasing importance of online services, the integration of data, voice and image communication and the penetration of private households with such products open up new sales channels between bank and customer. It can therefore be assumed that electronic sales channels are used in a far wider range of applications than just rationalization. It was also explained how changes in the product range, but also through suitable market presence measures via electronic distribution channels, could increase their suitability for the sale of banking products.

14. Case study Volksbank-Raiffeisenbank Landshut eG

The following describes the sales concept of Volksbank-Raiffeisenbank Landshut eG (VoRa) as an example of a holistic redesign of the sales system including all sales channels and the restructuring of the product range l.

15. Conclusion and outlook

In chapter 15 the essential contents of the work are summarized again.