What are the different ways that banks can follow to distribute their products directly

 Distribution in banking

A distribution channel is a route to the market for a supplier789. In the case of a bank, the distribution channel is the way the banking product or service takes from the bank to the customer. Most banks have multiple channels to serve their customers. Today, they can choose between branches, contact centers, ATMs and online channels, portals and web banks.

Types of distribution channels

1. Branches. These are the face of the bank and the place where the client meets the bank. The distribution is made by the traditional counter. The bank’s president is far away and not always known to customers.

 2. Specialized branches have been created as an alternative for the classic branches. These specialized branches are focused on a certain type of activity such as: operations for individuals, for small business or for corporate clients. Banks have opened such branches in supermarkets or malls.

 3. In order to better serve certain ranges of clients, banks have also created corporate branches  or private banking branches. These clients require more sophisticated products and services and high standards of quality. Therefore the staff employed in these branches should be seniors in terms of products knowledge and the quality of service delivery.

4. Among the specialized branches, we can also mention: the mortgage branches whose focus

is on selling mortgage loans. Raiffeisen Bank created such a branch named „Raiffeisen – Casa

Ta” as a result of the high demand for mortgage loans and the complexity of these products.

5. Self banking branches were first created by ING. These branches have two areas: one where the customers are served by bank employees (usually 3 or 4 persons) during the normal working hours and one where the customers can use self banking devices. These can be used all day long (24h/24, 7 days/7) and the access to this area is given to all the bank customers who have a debit card.

6. Mobile branches

 7. Banking cafes were first settled in Romania by Banca Transilvania. The banking cafe is the result of a partnership between a bank and a cafe. The branch that is located in a cafe can offer a full range of products and services (information point which offer leaflets, brochures with the bank’s products and services to the existing and potential customers along with financial

newspapers and magazines).

 8. Direct mail is another distribution channel for banking products and services. In the same time, direct mail is also a promotional tool. The aim of delivering the banking products and services by mail can be, not only just simply informing the clients about a new product but also convincing the client to buy a certain product.

 9. Automatic teller machines (ATMs)

ATMs can increase the marketing potential by providing services to clients in others places than  the bank branches. ATMs are an alternative for crowded desks in branches. Cash withdrawals were moved from the cash desks to the ATMs and this transfer is encouraged by most of the Romanian banks by lower fares for these services.

9. EFTPOS (Electronic Funds Transfer at Point of Sale) is a payment method that can be described as a distribution channel. EFTPOS is a system by which the clients pay the services they acquired just by using a bank card. This system is very used when shopping, travelling, buying tickets.

10. Mobile banking appeared in Romania in 2003. At the beginning, only some services were available: account balance, information about exchange rates etc. At present, all the banks provide mobile banking and the range of services provided is very wide: payments, direct debits, information about the nearest ATM/branch etc.

11. Call centers - Raiffeisen Bank was the first bank to start up a call center in Romania in 2004. Up until that moment, the only possibility to contact the bank by phone was through the branches’ numbers.

12. Internet banking. There is a debate about the impact of technology in services marketing, for example the Internet. The Internet-driven information revolution is widely seen to be transforming the way both business and consumer operate. This is particularly relevant inbanking services, where transa ctions do not require interpersonal interaction. In such cases the Internet becomes a new distribution channel.

 13. As banking market is highly competitive, the banks have looked for new formats to successfully develop market and deliver its services. Further promising approaches to distribution can be found outside banking. In many sectors, a rapidly growing number of franchise systems works with self-employed entrepreneurs as franchisees, who sell the franchisor’s products or services, benefiting from a standardized sales and marketing concept.