• Tanya posted an update in the group Group logo of Experiential Innovation Experiential Innovation 6 years, 11 months ago

    Online Banking vs. Traditional Banking! The battle is started!
    I have 2 bank accounts, one is with ING Direct. Like a year that I didn´t go to the ING branch because all I can do through my Internet Banking Account and their call centre, and I´m very happy with that! Another bank account I want to shut down because of bad customer service, no interest in me and an year fee for doing nothing for me. Most people are very familiar with how a bank operates. The concept is very simple; you take your money to the bank and they will keep it safe for you and you can collect it later. There are other uses of a bank, such as loans and interest. But with nearly everything going digital, including money transfers, paychecks, bill payments and debit cards, cash is practically becoming obsolete. And while some might be slightly nervous to make the switch to an online-only bank, there are some terrific benefits to online banking. I was reading that the best online banking services in 2012 are FlagStar Direct, iGoBanking and E-Trade.

    • Agree that on-line banking definitely makes it more convenient. I love being able to do things on-line at my own pace without having to go somewhere or wait on the phone. But sometimes, it is very helpful to have a human interaction to resolve bigger problems, get personal attention and advise. I think it would be hard for on-line only bank to introduce experiential innovation to make me want to stay with that particular bank even if I get a better price/service somewhere else.

      • I agree that there are times where having the person with you makes banking easier. That is probably our human side kicking in – we want some sort of human interaction because doing things on your own can get lonely and boring. Having someone there takes the burden and weight off your own shoulders.

    • With everything done on a smartphone, why do we really need so many banks? Can’t we just have Internet banking for our banks since almost every function is done online anyways? I think the only things we can’t do without an actual person is shake their hand or make eye contact.

      • Well think of it like this: we can do all of our shopping online, so do we need stores anymore? We also can see the world through pictures, so do we ever need to travel? Probably one of the most applicable though: we can order food for takeout and delivery, so do restaurants need dining areas at all? Sometimes, even if it can be removed or replaced it is smarter to keep it in place because there are people who have gotten used to it or would use one channel over the other.

    • Online banking is a great alternative channel to what we have been using for years. With all the technology available, it is only expected that we have some sort of way to use it for our banking needs. However, switching entirely to online banking has some drawbacks. First off, there is the loss that banks are going to take because they now have to shut down the branches that are not profitable anymore. This means layoffs, vacant leases, etc. for the banks. Second, there are those who do not have their smartphone or laptop with them all the time, so physical branches are just more convenient. You would not want to alienate this portion of your customer base because they, most likely, are older and have more money with the banks than younger folks. Probably the most important, though, is all the new infrastructure needed to make online banking the only banking solution. How would you consult for loans or discuss financial issues? Over the phone? There is just too much to change for banks to make them transition to online banking.