Technology and Media Effectiveness

New information technology is becoming an important factor in the future development of the financial services industry, and especially the retailing industry. Developments in information and communication technology (ICT) have significantly contributed to the exponential growth and profits of financial institutions worldwide. This evolution transformed the way that banks deliver their services, using technologies such as automated teller machines, phones, the internet, credit cards, and electronic cash. However, banks face a number of important questions on strategies for deriving full advantage of new technological opportunities and tracking electronic development changes affecting interactions with customers. In general terms, increasing convenience is a way of raising consumers’ surplus, provided new technology is adopted by the banks in order to offer convenience to customers, which might be through an electronic transaction as a substitute for a trip to the branch. Technology-based services imply different combinations of accessibility attributes (time, distance, and search costs), ease of use, and price. Another factor in determining the magnitude of the surplus that the bank can seize is the relative importance of cross-selling. The bundle of services provided electronically is usually not the same as the one available at a branch. For this reason new technology-based retailing services with high- customer value may offer better service conditions to harmonize the flow of information and services across the spatial and temporal dimensions.