Evolution of Banks’ Alternative delivery channels

To meet competition, banks set up branches for wider reach. This necessitated huge investment in terms of building and manpower costs. Banks were looking for ways to cut costs. This led to development of innovative technologies like the ATM and Internet banking. These channels turned around the picture for private sector banks making them market leaders in innovative technologies. (Srikanth and Padmanabhan, 2002). Mobile banking costs 50 per cent of Internet banking, 10 per cent of ATM and just 2 per cent of branch banking, according to RBI. Banks discourage customers from visiting branches. This paper looks into the self-service technologies offered by the banks and their present status in India.