High tech or high touch? Efficient channel strategies for delivering financial services

Abstract With the progress of information technology, financial service institutions are restructuring their delivery channels. The delivery channel applications now range from direct sales and agency systems to all-electronic, customer-accessed networks. A key issue in the design of a delivery channel is achieving a proper mix of new technology and traditional human-centred delivery approach. Moreover, the delivery channel design should be properly matched with the characteristics of the service being offered. Based on a model of economic trade-offs, a theoretical framework, called the service channel strategies (SCS) approach, is proposed for identifying, analysing and designing appropriate delivery channel applications in the financial services industry. An example from banking is discussed to highlight the scope and normative focus of the proposed theoretical framework.