3.3 Distrubtion Channels

Question 1

Multichannel banking (is transaction based)

Answer 1

• bank provide services to its customers through more than one channel

Channels include:
Branches
ATMs
Contact centres
Online Banking platforms
Video Banking
Chat bots (digital assistants)
Web chat
SMS (text messaging)
Mobile phone apps

Transaction based = each channel operate separately and independently from each other

Question 2

What customers can do via the channel:

Answer 2

• check balance or make payments (mobile app)
  -Pay bills online
  -Deposit money at a branch
  -Withdraw cash from an ATM
  -Resolve issues by phoning the bank contact centre
• engage with digital assistance or use Web chat
• Obtain advice from a specialist using video

Each channel operates separately from each other
Can cause issues if transactions made in one channel is not captured in others

Question 3

New “bolt on”

Answer 3

Stand alone operating platform
Makes it hard for bank to offer seamless experience

In where they can move easily between channels to access the information they need

Question 4

Omnichanel banking (interaction based)

Answer 4

• allow customers to interact with their bank across many channels (provide seamless way of banking to customers)

The solution in where transaction in one channel is not being captured by other > any change in one channel is reproduced in others used by the customer

Customer know that transaction will appear in all channels
Customers information is stored centrally and handed automatically in place

Can deliver more personalised service

Question 5

Comparison chart of multi channel and oMnichannel Banking

Question 6

Multichannel

Answer 6

Bank centric view
Allows customers to TRANSACT in a one-way relationship with the bank through multiple channels, simply giving instructions to the bank

• Understand what customer needs through analytics
• based on custom system of record
• relies on Service oriented architecture (SOA)
  Integration of applications with messaging

Question 7

OMnichannel

Answer 7

Customer centric view
Allowed customers to INTERACT in a two relationship with the bank to multiple channels, basing their decisions on information provided by the bank

• Aims to understand what customers want and like through analytics
  Based on systems of engagement
  Relies on big data, integration of customer context

Question 8

OMnichannel banking allows banks to

Answer 8

• Pay attention to customers and their banking experience as well as processing their transactions
• providing outstanding customer service by anticipating what customers want and when
• Get to the core of customers engagement with their banks rather than focusing on transactions
• collect and analyse data about customers that provide insight into their needs, and wants so that bank can provide personalised service

Question 9

Disadvantage of omnichannel Banking

Answer 9

If using one channel, the bank can’t satisfy all the needs through one channel

Solution to this is optichannel

Question 10

How customers can benefit with Omnichannel Banking

Answer 10

• use different channels to make transactions without having to enter their login in details each time
• can decide what channel they want to use (e.g, send money, apply for loans or save)
  More flexibility and mobility (user-friendly and innovative)
• All service are personalised to customer profile and transaction history
  Bank can use the data to create successful products to them

Question 11

Optichannel banking

Answer 11

providing customer with the channel or channels that best suit them

1. Tailored approach.
2. Optimal
3. Banking to the next level.

Goes beyond Omnichannel and multi channel

Question 12

Tailored approach

Answer 12

Determine the best number of channels for customers
Straightforward experience
(Rather than given customers access to many channels which can be very confusing, they select the one they will need and use).

Personalised customise experience = bank can deal effectively to customer requests.

Question 13

Optimal

Answer 13

Optimal messages at optimal times on optimal device

Ensure customers only received the communication that contains the information targeted to what they need

Question 14

Banking to the next level

Answer 14

Using AI, big data, and machine learning to offer customise products for each customer

Question 15

Self service banking

Answer 15

= customers do their own banking without visiting a branch

• near contactless and mobile tech (ATMS less popular)
• Interactive teller machine (ITM), carries out a wide range of transactions, allowing customers to have a video chat with a teller
• contactless transactions
• Online Banking
• Digital wallet

Question 16

Branch banking

Answer 16

In the UK, between 2015-2023
Almost 5,495 banks and buildings, societies branches either closed or plan to close

Those who will be impacted can still use Banking hubs and Banking pods

Question 17

Banking hub

Answer 17

= is a counter service from a variety of banks, can have face-to-face service when depositing and withdrawing money

Special rooms are provided with customers meet with community bankers (who work in different banks) to discuss their financial needs

Question 18

Banking hub operated by

Answer 18

Post office

In 2023, the post office banking hub rejoined by nine new Hobbs established by Link, the ATM network
(the independent, 2023)

Question 19

Banking pods

Answer 19

Barclays plan to launch their own banking pods for their customers
They will be in shopping centres and retail parks

Fleet of electronic banking vans (offer a personal Banking service to customers)

Banking pods = will be automatic but vans is face-to-face