Multi-channel banking in Romania: a comparative study of the strategic approach adopted by domestic and foreign banks

Driven by increased competition and more demanding customers, in the last five years a large number of banks have diversified their offer, offering multi-channel banking services. The situation is similar in transition economies where domestic and foreign banks are attempting to develop the market and attract a larger share of customers. This study presents a comparative analysis of the multi-channel banking strategies implemented by foreign and domestic banks in Romania, discussing the competitive conditions of the Romanian banking environment and the main reasons for the development of multi-channel services: in the market penetration stage, the foreign banks enter the Romanian market either by initiating electronic banking services, or through the acquisition of domestic banks; then, in the expansion stage, the foreign banks continue to develop through organic growth or through further local acquisitions, while domestic banks attempt to diversify their offer by introducing electronic banking services.