Investors Perception towards Selected Models of Branchless Banking

Abstract

Branchless banking is a distribution channel strategy used for delivering financial services without relying on bank branches. While the strategy may complement an existing bank branch network for giving customers a broader range of channels through which they can access financial services, branchless banking can also be used as a separate channel strategy that entirely forgoes bank branches. According to a 2011 survey, 62% of respondents said the Internet is their preferred banking method. Only 20% selected branch banking - a sharp decline compared with 2007 when 40% of respondents preferred to bank at a branch. Banks has to upgrade the service quality, efficiency due to Internalization, liberalization and progress in IT, the traditional branch banking module may not ideal for every target market and even it is not viable also by comparing the risk and returns is concerned, and banks are facing pressure to cut down their cost and due to competitions .in the course of implementing branchless banking banks has introduced some of the models like Internet, automated teller machines (ATMs), POS devices, EFTPOS devices and mobile phones. Each of these technologies serve to deliver a set of banking services and are part of distribution channels that may be used either separately or in conjunction to form the overall distribution channel strategy. This exploratory study revealed some important findings about awareness, usage and frequency of usage of branchless banking services of respondents. Purpose of this study is to measurement of perception on selected models of branchless banking based on 250 valid respondents of banking customers.