Alternative Distribution Channels In The Bulgarian Banking Industry: Analysis Of The Status And Major Developemnts

The business landscape for banks is changing reflecting the vast and rapid shifts in technology. Only ten years ago it was unthinkable to almost everybody that banking will be done through mobile phones, not to mention devices which did not exist at that time such as tablets and ultra slim laptops. Technology revolution is shaping consumer preferences and habits. In order to be in a position to keep existing and to attract new clients, banks need to revolutionize themselves adapting to the habits of customers. The traditional way of doing banking – at the physical branch is being challenged by the mobile devices connected to the internet. Banks have started shifting to offering as many more as possible services through the internet. Despite the fact that the physical branch still remains the dominant channel for delivery of banking services, it will have to share its future with virtual branches and other delivery channels, such as mobile phones, ATMs, internet banking, collectively known as alternative distribution (or delivery) channels (ADC). The aim of the current paper is to examine ADC practices of some of the major players on the Bulgarian banking market and to put forward an analysis which is the most appropriate structure that the organization needs to have in order to accommodate best the new services.