Distribution channels and the impact of technology Flashcards
What are the banking distribution channels?
- Standing orders/direct debits/faster payments
- Automated Telling Machines - ATMs, Automated Pay in Machines
- Night safes
- Quick deposit/drop boxes/automated pay-in terminals
- Telephone banking
- Internet banking
What services can ATMs supply?
- Accept deposits
- Send out marketing info
- Print the customers balance
- Print a statement of the customers most recent transactions
- Pay bills
- Change the customer’s PIN
- Transfer funds between different accounts
- Top up a mobile
- Make a charitable donation
What money transmission services can be carried out over phone?
- Transferring funds between accounts
- Paying a bill
- Standing orders
- Amending/cancelling a direct debit
- Share dealing
- Arranging an overdraft
- Third party payments
To make a bill payment over phone, what info does the bank need?
- The payee
- The payee’s bank sorting code number
- The account number that should be credited
- The customer’s reference number with the payee
What are the 2 main advantages of offering direct banking?
What other request can be made?
- Routine enquiries can be dealt w/directly
- Allows the org to provide a better service to customers through the use of specialist staff and software
It is possible for the customer to request credit facilities. Once the application is made, the bank will credit score the request
What are the two types of internet bank?
- Stand alone internet banks that offer competitive interest rates and service charges due to them having lower overheads than their high street competitors
- Traditional banks that provide branch, telephone and internet banking facilities
What does an internet banking service provide?
- Transfer funds between their accounts
- View past transactions and statements
- Make third party payments
- View and amend automated payments
- Find out about other products and services that may be of use to them
- Apply for other products or services
What are the advantages of internet banking?
- Services are available 24/7
- The time and effort to visit a branch are removed and customers can transact their banking from anywhere they have internet
- Fees often lower that tradional banking fees
- Despite concerns about security, the technology used ensures the privacy and safety of the customers’ financial info
- Customers can check the balances of their accounts, transfer funds between accounts and make electronic bill payments
What is money transmission?
Money transmission is the transfer of money from the receiver of goods and services - the debtor - to the provider of goods and services - the creditor.
What different types of money transmission are there?
- Cash
- Cheques
- Bank giro credits
- Standing orders
- Direct Debits
- Faster payments
- Credit cards
- Debit cards
- ATMs
- Direct banking - telephone & internet banking
What is a cheque?
What are the advantages of using them?
A cheque is an unconditional order in writing addressed & signed by one person to a financial institution them to pay on demand a certain sum of money to, or to the order of, a specified person or to bearer.
- Cheques may be made out for any amount thus avoiding the need to carry large sums of money and, unlike cash they are conveniant to send through the postal system
- The requirement of signed authority makes it a safer method of money transmission than cash
What are giro payments?
They are a credit transfer as they allow anyone to transfer funds to another party via the latter’s bank account
What types of customer are there and what kind of customer retention stategy should be adopted for them?
- New customers: Customer onboarding is the single largest group of customer retention strategies that can be implmented here.
- Existing customers: The best bank customer retention strategy for existing customers is to classify each type of customer (silent attrition, ideal & unhappy) and create appropriate initiatives to change theur behaviour.
- Exiting customers: Creating a customer retention strategy for this group requires identification of which camp customers are in and devise appropriate strategies and rewards to keep them on board.
Give examples of management programs.
- Product design evolution
- Payment automation optimisation
- Active customer complaints management
- Cross-sell leads management
- Product activation
- Usage stimulation
- Preapproved products
- IVR messaging offers
- Leveraging sponsorships
- Leveraging affinity marketing
- High value reltionships programs
- Low value relationships programs
- Local area marketing
