B.2 Communicating with customers

Question 1

What are the different ways of communicating with a bank?

Answer 1

1. Mobile banking
2. Online banking
3. Telephone banking
4. Branch
5. Postal banking

Question 2

What are the advantages of a branch?

Answer 2

1. Opportunity to build a relationship developing trust and brand loyalty
2. Transactions can be conducted there and then
3. Additional services such as advice can be offered
4. Gives the customer a high level of confidence
5. Very private
6. Easier to get accurate feedback

Question 3

What are the disadvantages of a branch?

Answer 3

1. Have to travel to a branch which is likely to incur travel costs
2. Restricted to bank opening hours
3. Time consuming e.g. long queues, travel time

Question 4

What are the advantages of online banking?

Answer 4

1. Available 24/7
2. High degree of privacy
3. Convenient

Question 5

What are the disadvantages of online banking?

Answer 5

1. Takes time at the beginning to set up or apply for
2. Not suitable for cash withdrawals
3. Increased risk due to cyber crime
4. If just an online account, the facilities may be limited
5. Internet issues
6. Some people may not have access to internet

Question 6

What are the advantages of telephone banking?

Answer 6

1. Convenient
2. No additional charges
3. Still a good form of communication

Question 7

What are the disadvantages of telephone banking?

Answer 7

1. Full access may be limited to set hours
2. Call centres and automated telephone systems can frustrate customers
3. Higher risk of fraud and identity theft
4. Waiting times

Question 8

What are the advantages of mobile banking?

Answer 8

1. Available 24/7
2. No additional charges
3. Convenient

Question 9

What are the disadvantages of mobile banking?

Answer 9

1. May need to download specific apps to access mobile banking for a particular bank
2. Higher security risk due to increased risk of loss or theft of mobile devices
3. Can be prone to hackers sending texts asking for bank details

Question 10

What are the advantages of postal banking?

Answer 10

1. Traditional methods that many customers will feel comfortable with
2. Does not require any additional technology or devices

Question 11

What are the disadvantages of postal banking?

Answer 11

1. Can be slow due to postal system

2. Post can get lost