channel banking is therefore state of the art (Figure 23). As typical Internet users, customers of 

financial service providers have raised their requirements; they have also become less loyal to 

their banks. If banks want to exploit the efficiency potential of the online channel, they have to 

make it relatively more attractive. 

FIGURE 23  Importance of Access Channels for Bank Customers 

90%

80%

70%

60%

50%

62

40%

21

30%

20%

11

5

< 5

23

< 4

10%

17

< 3

< 3

15

9

0%

B ranch

A TM s

Internet

Telepho ne

In sto re

M o bile

Interactive

M o bile

(incl. E 

banking

bank

distributio n TV banking

term inals

m ail)

branches

thro ugh

advisers

Very important

Extremely important

Source: DB Research, September 2002, Context, 2001 

The existing infrastructure makes mobile phones by far the widest reaching interactive electronic 

distribution channel. Still, mobile banking is currently hardly used. This is to a large extent the 

result of the underlying technical limitations. In addition to low bandwidth, long transmission 

times, and offline connections, it is frustrating for GSM based WAP users. Technological 

progress will probably lead to an increasing usage of mobile phones to access the Internet. 

Mobile banking might profit from this development if banks offer services for free (Figure 24). 

Electronic payment and mobile cash could be other successful business models. Although such 

business models at present are not widely accepted, there is business potential if the diffusion of 

such technologies can attract a critical mass.  

57