Do you know what is common among the following banks – ING Direct, HSBC direct, Raboplus, IY Bank and The One Account? They all are success stories of Direct Banking, thus all were featured in the report ‘Direct Banking Case Studies’ back in December 2004. According to the report presented, the success levels of a few Direct Banks were closely examined, and it was concluded that Direct Banking has proved to be a feasible alternative in the new market.
So, what is direct banking anyway?
A Direct Bank is a bank without any Branch Network. It offers its services through Telephone Banking, Online Banking, Mobile Banking and Mail Banking. Thus, the first thing that comes to mind with Direct Banking is the need for a good and updated IT Infrastructure because it’s the technology that enables you to go direct.
Direct Banking is a comprehensive solution for banks to directly acquire, track and serve customers, through the Internet or mobile, all with the absence of a brick infrastructure. It is a solution that is highly secure, and supports multiple authentication mechanisms.
One of this method’s success factors is the relationship with the customers. There should be a 360 degree view of customers, and a complete balance between customer relationships and the technology used. The relationship should also be interfaced with a powerful online sales enabler infrastructure, to drive customer e-acquisition and extend the bank’s outreach.
Direct Banking has gained ground in the financial services market. It supports demand generation through online sales enablers, and optimizes marketing efforts. This results in a greater conversion of prospects. This type of banking also presents extensive security features, thus enabling the Direct Bank to offer products that are highly secure and able to withstand the onslaught of security threats.
