INNOVATION IN MULTI

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INNOVATION IN MULTI CHANNEL RETAIL BANKING
Bank wins or loses customers
Worked Gentiana Gjino
Raiffeisen Bank, Albania
Orkida ILollari (Findiku)
Raiffeisen Bank, Albania
October 2012
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INNOVATION IN MULTI
CHANNEL RETAIL BANKING
Bank wins or loses customers

• New technologies are changing the functionality
  of society and its various components from one
  person to multinational companies
• Should not be surprised that in such situations
  banks can be found weak, but there is no enough
  time to recover, is precisely in these moments
  that plan strategies should be done whom will
  define the future, "Customer oriented".
• The real cause of this debacle can be summarized
  in a letter
• "E", Electronic.
• For the bank to win or lose customers is faster
  than in the past, the products are levied by type
  "pull".
• It is important to understand the characteristics
  of this new financial world, and thus define
  policies and strategies to adapt the structure of
  the bank in its entirety, but with special care
  not to see these changes as an actual trend but
  as the foundations to build the bank of the
  future
• Towards this horizon should see banks today.

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Purposes

• Purpose is finding a bank model being able to
  compete successfully in a market where
  socio-economic and technological factors have
  brought a major change in how banks operate
• It will also examine various electronic channels,
  such as physical and virtual
• Branches
• Internet banking
• Mobile banking
• Phone / SMS banking
• ATM
• POS, etc.
• Electronic money cannot replace completely the
  traditional money/cash.

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Innovation and its
importance

• Innovation is the process of transforming the new
  ideas into values
• There are several ways of conceiving the
  innovation which the future has called them as
  "the eight angels of innovation" and which are
• New products and services,
• New business models
• New "Brand" Experiences
• New partnership strategies
• New distribution channels
• New client segments
• New communication channels,
• New processes

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Innovation in banking system

• Banks are guided by the philosophy of continuous
  change through investments in the increase of
  banking service quality, improvement of
  technology and human resources, increasing of
  product gamma via a differentiated price.
• The logic of alternative channels is the triumph
  of the new economy paradigm and of the technology
  information, able to link different economic
  actors in new ways, reducing space and time
  distances
• "Multi channel" integration helps banks to gain
  competitive advantage through rapid development
  of innovative products, enhancing customer
  experiences by responding to consumer demands in
  a uniform way through a delivery channel and
  increasing benefits through "Cross Sell".

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Bank Types in the world

• Internet banking banks types
• 1. Information banks or marketing website
• - they are used only for marketing information ,
  the products and the offered services
• - this is a basic information about loans and
  deposits
• - risk is relatively low
• 2. Communication Bank website
• - users can get different information and they
  are allowed to send a "feedback
• - The risk is relatively low
• - They should be vigilant and continually check
  to monitor
• 3. Transactional website Banks
• - Clients can make transactions with their
  accounts in real time
• - Customers may update or modify account
  information
• - Clients can make payments to third parties in
  and out of the bank
• - These banks are exposed to a higher risk ,
  they must have very strong monitoring systems

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Bank Types
in the world

• Banks bricks and mortar type
• - they are ordinary banks
• - they do not offer e-banking services but rely
  only on their branches (physical branch)
• to deliver their services.
• 2. Virtual banks
• -they are banks without physical
  location/branches, but offer their services to
  clients
• only through e-banking.
• 3. Banks Brick to click"
• -When a traditional bank "brick and mortar
  "starts offering its services through
• e-banking for its customers,
  then it is called brick and click".

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How will be the e-banking
future?

• From all the popular electronic channels services
  the most used ones have been internet and mobile
• Adopting of the new digital channels of banking
  system will grow
• more. This growth will be encouraged even more by
  the use of digital
• equipment from new generations.
• How
  will be e-banking future?
• Customers will be more familiar with e-banking
  and will have a greater commodity for banking
  services.
• E-banking will continue to grow.
• Banks will extend their functionality and will go
  beyond basic banking services to personalized
  ones.

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Advantages of
alternative channels (e-banking)

• The challenge of banking industry is the
  designation of new channels for offering banking
  services.
• Alternative channels fulfill many functions of
  the relationship between bank and customer
• From customer perspective
• Convenience.
• Located everywhere
• Faster transactions
• Efficiency
• Effectively
• From bank perspective
• Control and costs reduction.
• Reduction of the administrative work and

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Disadvantages of
alternative channels (e-banking)

• Besides the costs that should be covered, there
  are also some disadvantages or drawbacks
• Starting the service may require some time
• The learning curve
• Technical problems
• Lack of personal interaction

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Virtual banks and their role
in world

• Click only BANK has not been widely used
• These banks may not immediately become completely
  virtual. Click only.
• This change must be in fact a gradual change.
  They must pass through intermediate stages for
  various reasons
• have neither the resources nor technological
  capabilities for the change and if even so, the
  market may not be ready to embrace the change
• rigidity in terms of labour laws makes it
  difficult reorganization of human resources
• The virtual bank has a target of four items, to
  allow the client to
• meet his expectations, grouping them under the
  notion of 4 E-s
• Everything the opportunity to access a huge
  range of products
• Every time opportunity to access 365 days a
  year, 24 hours 24
• Everywhere possibility to enter the bank from
  any location
• Everyway opportunity to access to services
  through the appropriate vehicle
• (PC, mobile)

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Conclusions

• The technology has become important components
  of banking institutions.
• The banks cant function alone in terms of work
  and number of counters, but they need to
  strengthen their distribution activities through
  electronic channels where the main goal is to
  fulfill customer requirements.
• This thesis emphasizes the idea that the winning
  model for banks is more diversity of integrated
  channels, including physical and virtual channels
  coordinated among themselves and not the pure
  virtually
• It is very dangerous to turn exclusively only on
  one channel, even if it comes to the Internet

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Conclusions

• The banks must therefore provide the opportunity
  to the clients to choose how to reach electronic
  channels. Afterwards, it will be the client that
  will make a kind of natural selection, by
  preferring one channel more than the other.
• It is important that it is not be bank the first
  to make this choice.
• E-banking has certainly brought about an
  evolution in the banking system, by
  'establishing' a bank branch in everyone's home
  and is destined to develop further. However,
  these recent years show that online banking
  services, even in future, will have an additional
  role of the traditional ones.

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• Thank you