Migrating Bank Customers to Adopt Digital Channels: An open withar Study

Abstract

"The retail banking model - where people visit branches and consult bankers in person - is passé. Digital banking/channels/tools have become people's first choice and have made life easier and faster for consumers. It is gaining momentum and the Indian banking industry is witnessing an overhaul in the way conventional banking has been conducted so far." The term Alternate Delivery Channel (ADC) in the banking sector generally used for Alternate Service Delivery Channel (ASDC) or Alternate Banking Channel (ABC) in the Banks for its services to the customers. Technology has given escalation to a new, peaceful furnished service named 'Channels. In the banking sector, Alternate Delivery Channels are channels and methods for providing banking services directly to the customers. These channels have enabled banks to reach a wide consumer-base across geographies. "Channelize through channels" is the new paradigm for banking today, which in earlier times relied solely on the branch network - where expanding the business meant adding more branches at high establishment costs. Channels like the ATM, Internet Banking Mobile Banking, and E-Statement etc. enable banks to reach a wide consumer base across geographies with little effort. Further, new technology has helped the customers to view their accounts, get account statements, transfer funds, purchase drafts etc. by just making a few key punches without visiting a branch. This research paper attempts to shed light that, off late, banks are taking steps to regulate the customers to move to the new modes of banking i.e. encouraging them to embrace digital channels. A smart, enterprise-wide approach positions them to deepen customer satisfaction and loyalty, driving long term relationships and profitability.

Key Words: Alterante Delivery Channels,  Digital Channels, Eletronic Banking (E-Banking), Encouragement, Information, Technology, Thrusty