Businesses including banks provide products and services and have multiple means to reach out to their customers to deliver their products and services. These means are termed “Channels”. Channels are the vehicles through which customers can interact with a bank and may be used for either sales or service interactions.
The adoption by the banking industry of the latest technologies such as the internet, mobile telephony, and social media has led to the introduction of new and innovative delivery channels. Such Technology-led Innovation and disruption have the potential to truly disrupt business models and distribution channels in the financial services industry.
Examples of banking channels are: Branches or the networks of physical (bricks & mortar) buildings in towns where the general public can walk in to obtain services, Electronic which covers a number of sub-channels that include Automatic Teller Machines (ATMs), Internet (Provision of product services to end users over the internet), E-Mail to send information and request services, Mobile – which is similar to Internet Banking but takes account of the limitations of the mobile phone. Other channels include telephone, mail, call centers, telesales, Interactive Voice Response Systems, and brokers/agents.
Banks that are using the latest innovative technology such as artificial intelligence (AI), virtual reality and agile development methods, to extend their services and establish new access channels have a competitive advantage. They will be able to develop first to market applications and services. They are the ones that think differently and can establish a stronger position in an ever-changing financial services industry.