channel banking is therefore state of the art (Figure 23). As typical Internet users, customers of
financial service providers have raised their requirements; they have also become less loyal to
their banks. If banks want to exploit the efficiency potential of the online channel, they have to
make it relatively more attractive.
FIGURE 23 Importance of Access Channels for Bank Customers
A TM s
In sto re
M o bile
M o bile
distributio n TV banking
Source: DB Research, September 2002, Context, 2001
The existing infrastructure makes mobile phones by far the widest reaching interactive electronic
distribution channel. Still, mobile banking is currently hardly used. This is to a large extent the
result of the underlying technical limitations. In addition to low bandwidth, long transmission
times, and offline connections, it is frustrating for GSM based WAP users. Technological
progress will probably lead to an increasing usage of mobile phones to access the Internet.
Mobile banking might profit from this development if banks offer services for free (Figure 24).
Electronic payment and mobile cash could be other successful business models. Although such
business models at present are not widely accepted, there is business potential if the diffusion of
such technologies can attract a critical mass.