Digitalization of Retail Financial Services : Direct Banking in Europe
Pavlyushchenko, Dmitriy (2017)
Lahden ammattikorkeakoulu
2017
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2017122222516
https://urn.fi/URN:NBN:fi:amk-2017122222516
Tiivistelmä
Due to growing customer expectations and development of digital technologies, retail banking has started to apply a business model aiming to reduce branch offices. This business model is called direct banking, and it is the central research subject of this thesis. The outcome of the research is to provide a marketing plan including recommendations regarding opportunities and challenges according to the said business model. The study can be useful for both traditional local banks and potential new players.
The thesis applies a deductive research approach and quantitative methods to analyze customer attitudes to direct banking. Secondary data is collected from books, published materials articles, previous studies, and internet sources. Primary data is gathered via an online questionnaire. The thesis report introduces the basics of the retail banking, the industry’s digitalization trends and marketing in banking.
The results of the study show that there are currently 28 fully functioning direct banks in Europe. The results illustrate that people still value ATMs while the significance of bank branches is rather low. Regarding the direct banking business model, this is good news. However, it was also revealed that bank customers have a negative attitude towards the main characteristics of the direct banking concept. Nevertheless, they may consider opening an account in a direct bank in the future. To succeed, direct banks should pay attention to affordable account fees, providing excellent customer service and designing user-friendly online tools.
The thesis applies a deductive research approach and quantitative methods to analyze customer attitudes to direct banking. Secondary data is collected from books, published materials articles, previous studies, and internet sources. Primary data is gathered via an online questionnaire. The thesis report introduces the basics of the retail banking, the industry’s digitalization trends and marketing in banking.
The results of the study show that there are currently 28 fully functioning direct banks in Europe. The results illustrate that people still value ATMs while the significance of bank branches is rather low. Regarding the direct banking business model, this is good news. However, it was also revealed that bank customers have a negative attitude towards the main characteristics of the direct banking concept. Nevertheless, they may consider opening an account in a direct bank in the future. To succeed, direct banks should pay attention to affordable account fees, providing excellent customer service and designing user-friendly online tools.