Branch Bank Network Structure with Electronic Transactions Considerations

The paper applies an economic model of a competitive market for retail banking services to generate insights into the following relevant questions. Is the cost structure of electronic distribution systems sufficient to justify choosing the Kiosk/PC Banking distribution strategy? That is, is it reasonable that market pressures and technological advances will allow banks to virtually eliminate branches? How does competition from other banks and non-bank firms affect the choice of distribution strategy? We find that in a wide variety of experiments that banks will retain their branch networks, along with a PC Banking capability.

• Type: Conference
• Year: 2000
• Where: HICSS
• Authors: Reynold E. Byers, Phillip J. Lederer
• Keywords: Banking Distribution Strategy, Biometrics, Distribution Strategy, HICSS 2000, Retail Banking Services