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Innovation in multi–channel retail banking. The bank wins or loses customers


  • Gentiana Gjino

    () (Raiffeisen Bank, Albania)

  • Orkida Ilollari

    () (Raiffeisen Bank, Albania)


'For many institutions, Internet is a dilemma. Embrace it and still will find yourself losing ground in your business or at least, can see your earnings falter. But ignoring it can be fatal' (The Economist) New technologies are changing the functionality of society and its various components: from one person to multinational companies. We are facing a complete change of paradigm not in vertical type, which belongs to a single sector, but the indirect type. If in the first case it is essential to jump on the train of the new technology, in the case of indirect paradigm that is obvious and inevitable, and this is what is happening in the time frame1. Initially it seemed that computers and technology would support only a way of living and working in industrial societies, rather than a modifier factor. In fact, company computers were used only to speed through office automation and to eliminate the large amount of paper documents. For many years it was thought that technology was only a useful tool to support the traditional, not understanding that represented a great opportunity to expand. Obviously, in this revolution are included banks in Albania, which from living a period of stability since 1992, are now facing a new world with more competition, more dynamics and more flexibility. We should not be surprised that in such cases the banks can be found weak, but there is not enough time to recover, it is precisely in these moments that plan strategies should be done which will define the future, "Customer oriented". The real cause of this debacle can be summarized in a letter: 'E', i.e., Electronic. A very simple way to verify the impact of new technologies, in our case the banking system, is to see the large number of words that have been born and was preceded by the prefix 'e': e-banking, e-trade, e -Business. In fact, no new words are born, these terms are common in the traditional financial world who added the letter 'e' as to emphasize a 'new way', a new world: the world of the New Economy. We can draw a line (hypothetically speaking) eline to distinguish the two worlds. On the one hand, there are the typical traditional businesses which dominate the contributions to 'physical' processes (slow and without flexibility) where products are placed by type 'push'. And on the other hand are businesses built by communication networks characterized by a pronounced innovation, the speed and flexibility of processes and products are placed by type 'pull'. Also, for the bank to win or lose customers is faster than in the past, the products are levied by type 'pull'. In this new way of acting, the client is in the center of the bank and consistently pursued from the policy of Customer Relationship Marketing. So, it is important to understand the characteristics of this new financial world, and thus define policies and strategies to adapt the structure of the bank in its entirety, but with special care not to see these changes as an actual trend but as the foundations to build the bank of the future. Banks should be seen today in this perspective.

Suggested Citation

  • Gentiana Gjino & Orkida Ilollari, 2012. "Innovation in multi–channel retail banking. The bank wins or loses customers," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 4(2), pages 119-129, Decembre.
  • Handle: RePEc:rse:wpaper:v:4:y:2012:i:2:p:119-129

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    bank; innovation; cross-sell; online banking; technology; customer;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages


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