Marketing Challenges in E-Banking: Standalone or Integrated?

One of the most significant developments in bank marketing in recent years has been the use of technology in creating new channels through which customers can transact their accounts and interact with their bank. The literature shows how e-banking has developed rapidly and become a mainstream channel, but concerns have been raised about the ability of banks to manage customer relationships effectively through this new channel. The case studies presented in this paper are chosen to exemplify two approaches to e-banking: integration into an existing operation and separation (through a standalone operation). Analysis of these case studies shows how a market oriented approach to customer service can be implemented particularly effectively at an operational level in the standalone case. However, while the need to manage customers far more holistically is recognised in the integrated case this has not yet been achieved in practice. The reasons for this highlight challenges for marketing in the banking sector.