The use of alternative channels for banking transactions is on the rise but these are still struggling to gain customer acceptance. Banks are pushing for these as the cost of transactions at a branch is thrice of that at an ATM. Electronic channels such as the Internet and mobile banking are even more cost-effective. The cost of a transaction at a bank branch is $1.14 compared with $0.46 at ATMs, $0.23 on the Internet and $0.09 through mobile banking. Some of the interesting findings of a customer experience survey carried out by Accenture, based on interviews with 3,459 customers of 11 banks, both state-run as well as private, between September and November 2009 across Indian cities, are: Women have a greater preference for the branch channel; the use of Internet and phone banking increases with the level of education; the proportion of ATM users decreases with age in favour of branches; and respondents in urban India prefer ATMs to branches. While traditional channels drive usage and alternative channels are yet to gain customer acceptance, 40% of respondents plan on using at least one new channel in the next six months. There are 65,000 bank branches and 44,000 ATMs in India, and at least 78% of respondents prefer branches and ATMs to other channels for accessibility, quality of service and speed.
Also See | The customer connection (pdf)