Organizing for the effective introduction of new distribution channels in retail banking

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Abstract
Explores why some retail banks more than others are vigorous in their promotion of and have been successful in changing their distribution channel structure by introducing new electronic channels, such as PC banking and Internet banking. A tentative model is proposed relating a number of variables to the banks’ promotion and successful introduction of the electronic channels. Responses from 60 key managers in the largest retail banks in Denmark indicate that bank size, expected advantages for the customers, attention to the future, senior management support, and willingness to cannibalize existing channels may be important factors in explaining the successful introduction of the electronic channels. Further, the results indicate that different attitudes and perceptions are related to different means of attracting customers to the electronic channels. Finally, discusses the implications for the banks and other firms of adopting the Internet as a distribution channel.

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