Telebanking. The Phone Channel as a distribution channel is becoming increasingly important to banks in the U.S. according to a recent study published for the American Banking Association ( ABA) by FTR Inc. The 10 Month study called " The Evolution of Bank Call Centers" included more than 1,000 banks of all sizes. Nearly 25% of the respondents who ranked themselves on "the leading edge" viewed their call centers as profit centre, compared to only 9% of the overall sample.

The " Leading Edge Banks" ( LEB) showed significant differences to the " Overall Bank" (OB) sample :

1) On Customer retention

LEB : expectation 93% & realisation 86%. OB : expectation 71% & realisation 53%

2) On selling and Cross selling

LEB : expectation 79% & realisation 79%. OB : expectation 64% & realisation 48%

3) On fewer live customer calls

LEB : expectation 86% & realisation 73%. OB: expectation 66% & realisation 49%

Web-Editors Note : It seems the age old adage " If you want to do something.. do it well" unsurprisingly also applies to the Banking Sector where Distribution Channel Conflict between the Old ( the Branches) and the New ( The Phone Channel) always end up in Board Room and that the Leading Edge Banks are banks where the NEED to cut cost and maintain market coverage have won the day for the Phone Channel. The lack of Activity Based Costing (ABC) in the Banking Industry has in the past been a major stumbling to comparing the Bank Branch Network profitability and costs of doing business with the completely visible cost of The Phone Channel.

 

 

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