XXV Edition

1-2 December 2016"

Drive the Transition from Traditional to Direct Banking: an Empirical Study

Filotto Umberto, University of Rome Tor Vergata
Caratelli Massimo, University of Rome III
Fornezza Fabrizio, GfK Eurisko

While the world is going digital and services are more and more moving on line, banking is still - to some extent - a traditional business with branches and physical outlets playing a significant role. Despite a very clear rationale and powerful enabling conditions, the migration from branches to online banking is happening at a steady, but slower than expected, pace. With the above in mind, a sample of 600 banking customers was interviewed in 2014 about the propensity to adopt dematerialized ways to interact with banks. Their answers were analysed using a different statistical methodology based on a Shapley Value regression. The results suggest that while rational restraints are easily and increasingly overcome, the emotional part of the relationship between banks and customers remains largely ignored. Thus the demand for a different kind of bank (more efficient, user-friendly, transparent, but also capable of winning back the trust that recent events severely undermined) remains largely unanswered; banks that want to accelerate the transition from a physical to a mixed model of delivery (i.e. bricks and clicks) should thus be ready to develop an approach that does not simply emphasize “hard facts” (costs, higher revenues 24x7 etc.) but that also leverages on the soft and emotional profiles of the bank-customer relationship.

Area: Banking

Keywords: Internet banking; Banks; Technology adoption

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