Managing customer channel usage in the Australian banking sector Available to Purchase

Since deregulation in the mid‐1980s the banking industry in Australia has become increasingly competitive. Australia already has one of the least controlled banking systems in the world, and the implementation of the recommendations of the Financial Systems Inquiry (the Wallis Report) should contribute to a further increase in competition in the banking sector, with more non‐bank financial institutions and speciality companies entering the market. Increased competition, weakening interest rates, squeezed profit margins and the surge of mortgage originators into a traditional banking market have all prompted a search for new and innovative methods of improving internal efficiency, leading to the development of new banking products and the exploration of alternate delivery methods, or channels. Improvements in technology are facilitating this development and this paper examines the implications both for customers and for bank profitability.