Communicating with customers

Question 1

Branch

Answer 1

A physical place where transactions are carried out face to face. Customers visit the bank to carry out their banking needs. Could be over the counter transactions or suing computerised facilities such as ATM.

Question 2

Branch pros and cons

Answer 2

Pro’s - additional services can be offered, gives customers high levels of confidence, encourages brand loyalty.
Con’s - restricted to bank opening, travel costs to bank, takes considerably longer.

Question 3

Online banking

Answer 3

This allows customers to manage their banking needs over the internet on a laptop or computer.

Question 4

Online banking pros and cons

Answer 4

Pro’s - available 24/7, convenient, high degree of privacy
Con’s - cannot withdraw cash, increased risk due to cyber crime, limited facilities.

Question 5

Telephone banking

Answer 5

Customers carry out banking transactions over the phone, service is usually automated for checking balances and paying bills

Question 6

Telephone banking pros and cons

Answer 6

Pro’s - convenient for basic functions, no additional charge
Con’s - full access limited to set hours, automated systems and call centres can frustrate customers, risk of fraud/ identify theft.

Question 7

Mobile banking

Answer 7

Use of mobile phones and tablets to conduct financial transactions.

Question 8

Mobile banking pros and cons

Answer 8

Pro’s - convenient, available 24/7, no additional charges, easy to use.
Con’s - may need to download specific apps, higher risk due to possibility of being hacked.

Question 9

Postal banking

Answer 9

paper based financial transactions, many banks send out paper copies of statements and some customers may pay their bills by cheque.

Question 10

Postal banking pros and cons

Answer 10

Pro’s - traditional method that customers feel comfortable with, no additional technology required.
Con’s - post can get lost, takes longer than other methods.