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Technologies for the delivery of financial services, such as ATMs, home banking and other self‐service media, are having a profound impact on the design of retail banks' delivery systems. The results of an empirical study based on a probability sample survey of 117 US retail banks, in which the channels of delivery for typical banking products are investigated, are presented. Several of the basic assumptions of a conceptual framework depicting the relationships between service contents characteristics and service delivery channels are tested. Specifically, this article considers how banking services (transactions and enquiries) generally vary according to the type of delivery channel emphasised by the bank for its target market (industrialisation level) and according to the number (span) of delivery channels available to the customer. It also shows the relationship between these two key factors in delivery system design, industrialisation and span.

The purpose of this paper is to examine the online retail banking industry and determine if there is evidence that online banking will be a dominant player in the financial services retail marketplace.

An analysis of 22 banks is conducted and it is determined that the barriers to entry that are identified may not be enough to prohibit a substantial number of entrants into the marketplace.

Using Porter's five‐force model to conduct the industry analysis; online banking is still in its infancy, although with great potential. According to FDIC, while approximately 40 percent of the 10,623 banks and thrifts in the US market have a website, only 376 offer transactional internet banking at the time of the study. About 30 internet‐only banks or a pure‐play format operate in the USA. All of the web‐only banks in the USA combined have about 250,000 depositors, out of the nearly six million customers who have stated that they do significant banking activities over the internet.

Owing to the different types of potential suppliers, the suppliers in the online‐banking industry do not appear to have as big a bargaining power in this industry as they would in another industry. Buyers, however, hold the keys to success in the online‐banking industry. Buyers do not need the product that is offered due to the many substitute products available in the market.

In the end, the rivalries among banks lead them to differentiating their internet banking products which is what will afford one bank to have a competitive advantage over the rest of the market.

The results of a study on the cost efficiency of expanding and marketing bank services through branching rather than through the formation of new banks are given. Using detailed cost and bank service output data from a large sample of bank branches across Canada, several issues of interest to bank management and marketing officials are addressed. The evidence presented indicates that some Canadian banks may not be benefiting fully from their ability to rationalise their activities. Retail and commercial banking branches operate according to different technologies for producing financial products and services. Small commercial branches show less potential for economies of scale than retail branches. However, this potential does not appear to shrink as rapidly as it does for retail branches. Finally, both retail and commercial branches show benefits from specialisation. As a result of these technological characteristics, banks may be well advised to maintain their marketing strategy of segregating their retail business from commercial business.

This paper examines the perception and expectations of banking customers regarding the value being delivered to them by retail banks in South Africa. A literature review dealing with the concept of value was undertaken that presents the value disciplines of operational excellence, product leadership and customer intimacy. Results of a study of 150 managers are presented. The results show that customers were not satisfied with the service, products and level of customer intimacy delivered to them by their banks. Thus, they did not believe that they were getting the value they expected. Recommendations to retail banking management are made to help remedy the situation.

Examines various aspects of the motives, perceptions and expectations connected with the introduction of Internet banking in Danish retail banking. Responses from 60 key managers in the largest retail banks in Denmark show that they believe that Internet banking will become more important in the future, whereas all other distribution channels are predicted to become less important. Describes further the relationship between the perceptions of and expectations from Internet banking, the reasons for offering an Internet bank and the way it has been organized in the banks.

The development and maintenance of a long-term relationship with customers are essential for banks to bolster their profits and thrive in a competitive environment. This study aims to explore the key factors that influence individuals' bank-switching behavior in the Malaysian retail banking industry to provide insights to bank managers to develop effective customer retention strategies.

A convenient sampling technique was used to distribute questionnaires to bank customers in Malaysia. A total of 312 utilizable questionnaires were obtained for further analysis. For the data analysis, the authors used explanatory factor analysis (EFA), confirmatory factor analysis (CFA) and logit and probit models to identify the determinants of bank-switching behavior of bank customers in Malaysia.

This study revealed that switching costs, effective advertising from competitors, inconvenience, price factor and service failures significantly influence customers' retail bank-switching behavior in the Malaysian context. The findings bring some significant policy implications for bank management decisions.

The non-probability, convenience online sampling method may not be generalized to the population. However, the descriptive demographic statistics show that the findings provide a reasonable representation of the Malaysian population.

This study empirically investigates the determinants of individual customers' retail bank-switching behavior in the Malaysian context. This study is the first of its kind to observe the unique feature of price factor as a determinant of individual customers' switching behavior in the Malaysian retail banking industry, contrasting previous similar studies in different countries.

The Independent Banking Commission (Vickers) Report is not only one of the most significant developments in the banking regulatory and supervisory context in the UK in recent times but is also one that would considerably impact banking and capital markets functions and trends in this decade. The purposes of this paper are two‐fold: to analyse the interim Vickers Report within the larger paradigm of the prudential banking regulatory approach in the UK, particularly in the context of the debate of bailing out banks that are too‐big‐to‐fail; and to critically examine the recommendation of the Report in the context of the failure of Northern Rock in 2007. The central focus of the paper is to analyse the probable impact and shortcomings of the key recommendation of the Vickers Report, i.e. requirement to hold an additional capital buffer in order to separately ring‐fence retail functions and retail deposits of universal banks and financial institutions operating in the UK.

The method used is a combination of legal examination and case‐study based analysis. This paper sees the failure of Northern Rock as essentially a consequence of supervisory lapses by the FSA and raises relevant critical questions as to the efficacy of the recommendation of the Vickers Report in the context of such supervisory lapses and failures. While relying primarily on official publications in the public domain, journal articles, academic writings, and, newspaper articles, this paper explores the related regulatory and financial implications of the Vickers Report recommendation in the backdrop of the banking crisis in the UK.

The paper concludes that the key recommendation of the Vickers Report, to ring‐fence retail functions universal banks operating in the UK, goes only mid‐way in securing the twin objectives of stability and safety that the Report has set out to achieve.

The present Report is an interim one and the final version of the Report is expected in September. Further, various oversight reports and recommendations by the FSA and other bodies are expected as a follow‐up to the final Report. The key recommendation of the requirement for universal banks operating in the UK to hold additional capital for ring‐fencing their retail functions and deposits is not expected to undergo any substantial modification or revision in the final Report.

This paper is of immense significance to bankers, supervisors, lawyers, auditors, consultants, researchers, jurists, and, those engaged in or with various issues and sectors in financial and banking regulation.

Retailing is traditionally defined in terms of the retailers’ place in the distribution of tangible products. However, the retail function may be more widely defined where the retailer concerned is involved not only in the provision of product distribution services but also in the management and provision of financial services. Retailers are rediscovering the impact financial services may have on organisational success. That is, they are increasingly recognising the direct contribution that financial services may make to profit margins and the indirect benefits which may accrue through increased customer loyalty. This article considers the framework within which innovation in the provision of payment systems and other financial services is occurring in the retail sector.

The intangible nature of banking services enables financial institutions to deliver them through electronic channels. In addition, the interactive and continuous nature of banking services is conducive to relationship development. It would, therefore, be beneficial for the dyad to build exchange relationships online. This exploratory research investigates the effect of e‐banking on the development of retail relationships in Cyprus.

The perspective of both sides of the dyad is incorporated through face‐to‐face in‐depth interviews. The empirical base used is the Cypriot retail banking sector.

The findings suggest that in the specific context, e‐banking has a significant impact on relationship development, especially at the first stages of the developmental process, but it cannot substitute the other delivery channels.

In view of the contextuality of exchange relationships, it is recognised that the results may be context‐specific and as such, future research should investigate the impact of online delivery systems in alternative cultures and service settings.

The findings create a number of managerial implications, including the need for banks to invest both in e‐platforms and in the development of their employees, as well as the need to systematically appraise customer relationships.

The paper is of value to both academics and practitioners as it addresses the pressing need to investigate exchange relationships using a processual perspective and offers insights into the developmental process of Cypriot retail bank‐client relationships.