Case Study - Essay Example

tudy on “Hansabank” a European bank which has its presence in both branch and online banking, HR related cost in case of Branch banking accounts for 96% of the total cost while in case of online banking the same figure is just 1.1%. The cost structure of “Egg” does reflect some strategic problems which are associated with a pure click bank i.e. a bank which has no physical presence; while numerous studies support the view that online banking provides a bank with a lot of profit potential due to cost reduction and higher sales by cross selling to the existing set of customers and targeting news customers in far roof geographies also.

But it is also argued that pure online presence without having branch support would do more harm than good. The view is, albeit, a bank should go for online presence to take advantage of all the opportunities it provides, but leaving the physical place altogether would not be the key. Rather than considering them supplementary, E banking and branch banking should be considered complementary to each other. The online channel should be used to provide more mundane or routine services and offering increased convenience and customization.

Branch banking should be better exploited as a means to acquire new customers and managing relationships with the existing ones. Before the advent of E banking the most of the time of bank clerks would be spent on performing routine services and they would get very less time to understand and serve the customers, but with greater efficiency due to E banking that has been made quite a possibility. Developing E banking capabilities is no easy task. It calls for heavy investment in Technology and hardware to put in place all the systems required.

Another important concern related to E banking is insecurity of transactions, in fact here both real and perceived insecurity are important. For real threats the company has to look for secure technology, but dealing with the perceived insecurity problem