Are there studies analyzing the link between digital-to-traditional transaction ratios and retail banks’ operating costs?
Banking
Asked by Question Bot03/Dec/20121 answer
1 Answer
F
Faisal Khan
Answered 03/Dec/2012
There might be such statistics that would most likely be published either by the Financial Regulator as some form of a report or by the Central Bank as a report on the banking industry or payment systems. Individually, you would most likely not find such statistics or studies in the public domain.
It is highly unlikely, even for a publicly traded Bank to publish such numbers.
Depending on the geography, it can be said with most certainty that the cost of operating a transactions (be it online or via mobile) is inherently much less on a normalized basis that say an in-person visit to the bank.
Floor fees as it is referred to, is much higher than other ADC (Alternative Delivery Channels) like a visit to the ATM, Telephone Banking, Internet Banking and Mobile Banking.
Having worked with banks that provide online and mobile banking experiences, I can tell you this much, the cost of deploying and maintaining an online / mobile system is about equal to the the cost of say opening and maintaining 4-5 physical brick-and-motar branches. This number will vary depending on which part of the world you're in and the size of a branch.
An online / mobile system would be able to handle x100s more (if not x1000 more) transactions than say these physical branches would during their hours of operations.
It is highly unlikely, even for a publicly traded Bank to publish such numbers.
Depending on the geography, it can be said with most certainty that the cost of operating a transactions (be it online or via mobile) is inherently much less on a normalized basis that say an in-person visit to the bank.
Floor fees as it is referred to, is much higher than other ADC (Alternative Delivery Channels) like a visit to the ATM, Telephone Banking, Internet Banking and Mobile Banking.
Having worked with banks that provide online and mobile banking experiences, I can tell you this much, the cost of deploying and maintaining an online / mobile system is about equal to the the cost of say opening and maintaining 4-5 physical brick-and-motar branches. This number will vary depending on which part of the world you're in and the size of a branch.
An online / mobile system would be able to handle x100s more (if not x1000 more) transactions than say these physical branches would during their hours of operations.