Abstract
Banks have not come to rest since the 2008 banking crisis and have been struggling for their future ever since. In addition to serious market distortions, there are increasingly digital challenges and investments in the banks’ platforms to remain competitive and continue to meet customer requirements. Other industries are showing the banks how to do it and investing heavily in the networking of distribution channels to form an omni-channel system, as this is where all interfaces converge. The banking industry has also recognized this groundbreaking approach in the distribution channel. Academic literature is also increasingly examining omni-channel management, but studies in the banking industry are still sparse. This study uses multi-method research in the form of a systematic literature review and semi-structured qualitative bank expert interviews to examine omni-channel management in the banking industry. Thereby, the state of scientific research and the future objectives of the banks are analyzed. Bank experts in Germany explain what bank customers will expect, how far German banks have progressed in implementing an omni-channel system, and how the bank-customer relationship will change. Findings show that banks will completely transform their distribution by omni-channel management by breaking with existing structures and creating a new customer experience and higher customer value. The paper provides critical insight into what omni-channel integration means for the banking sector.
Highlights
Banks have changed decisively in recent years because various serious problem areas and changes have occurred simultaneously and are still significant, virulent, and persistent today (Abhishek, Geng, Li, & Zhou, 2017; Wyman, 2018)
The banking industry has recognized this groundbreaking approach in the distribution channel
This study reviewed a large number of published papers to examine omni-channel approach in general and the distribution channel of banks in particular
Summary
Banks have changed decisively in recent years because various serious problem areas and changes have occurred simultaneously and are still significant, virulent, and persistent today (Abhishek, Geng, Li, & Zhou, 2017; Wyman, 2018). The changes are extrinsically shaped by changing customer behaviors, new competition and governmental financial support to prevent bank insolvencies to poor performing banks, new regulations and institutions, and increasing digitalization (Efma & Backbase Report, 2015; Ernst & Young AG, 2018; Jovanović, Arnold, & Voigt, 2017; Wernicke, 2018). The changes are intrinsically motivated by the imperative to adjust costs and to increase profitability to regain completive structures (Gasser et al, 2017). Existing banking processes are dominated by regulatory bloated unit costs that customers are reluctant to pay because they do not have causal relationship with transactions and can be offered by fintechs at lower prices (Buchak, Matvos, Piskorski, & Seru, 2017; Pratz, Chikkova, Freddi, Castro, & Hewlett, 2015).
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