Methods of communicating with customers Flashcards
evaluate branch as a method of communication with customers
physical place where transactions are carried out face to face.
Customers visit the bank to carry out their banking needs.
This could be using self service machines or seeking advice from an employee at the bank.
Banking is restricted to the hours that branch is open until.
give 2 advantages of branch
Opportunity to build a relationship developing trust and brand loyalty.
Gives the customer higher level of confidence
Additional services can be offered
give 2 disadvantages of branch
Need to travel to a branch is likely to incur travel costs. e.g parking or fares for public transport.
Restricted to bank opening hours.
May be long queues plus travel time, making the process time consuming.
evaluate online banking as a method of communication with customers
allows customer the opportunity to manage their banking needs over the internet on a laptop or computer.
They can do many of the same things that can be carried out in branch.
Banking online is not limited to opening hours and gives customers 24 hour access.
give 2 advantages of online banking
Can access your account information, transfer funds, pay bills and perform other banking transactions from anywhere at any time as long as you have internet which means that you don’t have to visit a branch during business working hours and stand in long lines to perform simple transactions.
Transactions are processed electronically meaning that you can transfer funds almost instantly.
High degree of privacy ( encryption technology and two-factor authentication to protect your personal and financial information and to ensure that only one person has access to it)
give 2 disadvantages of online banking
Not suitable for cash withdrawals.
Takes time at the beginning to set up or apply for.
Increased risk due to cyber crime and fraud ( strong passwords must be set)
Lack of personal interaction
evaluate telephone banking as a method of communication with customers
Customers carry out banking transactions over the phone.
available 24/7 and is usually just for automated services like checking balances and paying bills.
Some accounts do allow you to speak to an advisor.
give 2 advantages of telephone banking
Accessible to everyone including those who may not have access to internet
No additional charges
24/7 ( convenient for those who need to manage their finance outside business hours)
give 2 disadvantages of telephone baking
Limited functionality as it may not offer all of the same services as online/branch banking do.
evaluate mobile banking as a method of communication with customers
Similar to online banking but the service is accessed via a mobile device such as a smartphone or tablet.
give 2 advantages of mobile banking
Many banking apps offer personalized assistance with the customers needs such as budget tracking and financial advice
Provide you with real time information such as account balance, transaction history and statements which can help manage finance and make informed decisions.
give 2 disadvantages of mobile banking
May need to download specific apps to access mobile banking for a particular bank.
Higher security risk due to increased risk of loss or theft of mobile devices.
Can be prone to hackers sending texts asking for bank details.
evaluate postal banking as a method of communication with customers
Paper based financial transactions.
Many banks still send out paper copies of statements and some customers may still pay their bills by cheque.
give 2 advantages of postal banking
Accessible to everyone even for those that dont have access to a mobile phone or computer.They are widely available and can be found in rural areas.
Cost effective as reduces the need of a physical infrastructure such as branches which can lead to lower fees for customers
give 2 disadvantages of postal banking
Do not offer same range of services as traditional banking which limits the ability of customers to perform complex transactions
Postal offices may have limited hours of operation which makes it difficult for customers to access their account and carry out transactions outside regular business hours
