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Customers & their needs

Customers & their needs


There are a large number of factors which a financial service institution considers in order to select the best fit channels for their valuable customers. It is a step wise process i.e. Firstly we need to highlight the different channels for customers (Holmsen, pp. 82-93). Secondly, the assignment requires a complete detail of the factors upon which the decisions of a financial intuition is based. In the end the question arises that why a financial institution requires to all these factors?

Distribution Channels

A Distribution channel is basically the medium through which a financial institution can give and earn benefit from their customers. Some of the most important distribution channels from the advent of banking services are as follows:

Telephone and internet Banking

Online Banking


Cards and cash

From internet banking to telephone banking all these strategies are adopted by the financial institution to attract a customer towards them which in returns increase their customer base and ultimate objective of making profit.

Main Objective of the study

Discuss the factors that a financial services organization (FSO) would need to evaluate when selecting which delivery channels to offer to its customers.

A bank is a financial institution which needs an extensive research to develop new models and modes of doing business. There are advantages and disadvantages of every distribution channel to implement in the economic system. In this regard, there are a number of factors which a financial institution requires to evaluate prior to the select of any new distribution channels in an economy (Johne, 1996, pp. 176-80) .

Scanning Of Factors Prior To Launch a Next Big Thing

The factors which a financial institution considers are as follows:

Business Environment

Economic Environment

Need of the channel.

Customer acceptance, Customer acceptance/ customer attitude.

Risk and measure involved

Evaluation of the future scope and current available alternatives

Advantages and Disadvantages of that distribution channel

How can a financial institution retain their customer in response of that distribution channel?

There may be a large number of factors which defines the actual picture while deciding on the best fit option but after the analysis of related literature one can be able to scan certain factors which are highlighted above.

Business Environment

Business environment is the foremost and the first thing which a business needs to analyze different variables that is the current condition of business where it is where it has to be. The most important thing is to analyze the scope of Online Banking, Internet banking and ATM's and Credit cards. For example: if a financial institution of UK is opening its branch in Asian country they need to know the culture and the business environment of the particular country that is, are the customers competent enough to utilize these services. It is the business condition of that country which give a concrete answer, if businesses are progressing the business environment would show some positive factors, whereas they highlights the negative side. (Holmsen, pp. 82-93)

Economic Environment

Is economic structure of the country vibrant enough to accept the deliver channel? For example, ...
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