Answer:
Many bankers have expected online banking to replace transactions previously done in person or over the telephone. In reality, it has been very rare for one channel to completely replace another. Consumers grow attached to the channels and delivery points they have grown accustomed to, and are reluctant to leave them. As a result, the impact of new delivery technologies on other channels is often subtle.
In many cases, the most dramatic change is that the consumer's overall activity increases. More than likely, new transactions add to the old. This has been the experience with many banking technologies, including online banking.
Probably the most striking impact has been customer's evaluation of overall bank performance and bank personnel performance as a result of introducing online banking. Customers' expectations, for the most part, are not being met in terms of online banking help and acumen.
Evaluation of Bank PerformanceRated by Online Consumers(10 = Strongly agree with statement; 1 = strongly disagree with statement) All respondents Online Bankers Online Investors Non-users My bank has done a good job educating me about online banking 4.0 5.4 4.6 3.2 The employees at my branch are knowledgeable about online banking 5.1 5.7 4.9 4.9Source: Verdi & Company proprietary research, 2000
Gerald Verdi, President of Verdi & Company, has over 20 years experience in retail banking delivery, distribution and strategic planning. Mr. Verdi's career began at First Empire State Corp., M&T Bank, in Buffalo in 1978. In 1990 he was the founder and principal of Verdi Ryan Associates. Mr. Verdi has developed planning methodologies, processes and implementation strategies for super-regional, regional, community banks and credit unions. Several of these institutions are among the most profitable, growth-oriented financial institutions in the industry. Over the past decade, Mr. Verdi has managed over 500 projects that have led to meaningful cost reduction and significant profitability performance. Mr. Verdi is a graduate of Pennsylvania State University and the State University of New York at Buffalo.
Jerry can be contacted at consulting@verdico.com or 1.800.348.4164.
First published on BankersOnline.com 10/1/01
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