How internet has reshaped the user experience of banking service?

Kiheung Nam, Zoonky Lee, Bong Gyou Lee

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)


The changes new technologies have brought to banking over the past decade are enormous in their impact on the ways of doing business and providing customer services, most notably in the areas of customer service channels. Banks have been trying to move away from the traditional, branch-based and costly staff-assisted channels toward self-assisted channels, i.e. internet banking and mobile banking, to drive down costs and improve customer loyalty. How internet and mobile have reshaped the user experience of banking service channel? To provide valuable insights for this question, this research investigates and compares customer’s channel choice behavior and profit changes from bank’s branch closure. Applying the propensity scoring matching method, the results of analysis demonstrates that the mobile channel can be a realistic alternative to conventional branches. Also, the reserch result shows banks can reduce conventional branches while experiencing a positive implications on their profits from the customers. Another significant implication from the research is, to accelerate the shift to digital channels, banks need to put more efforts on developing functions in the mobile channel that will allow friendly interaction with customers and consultation, such as video consultation, interactive chat, and location-based product recommendation.

Original languageEnglish
Pages (from-to)684-702
Number of pages19
JournalKSII Transactions on Internet and Information Systems
Issue number2
Publication statusPublished - 2016 Feb 29

Bibliographical note

Publisher Copyright:
© 2016 KSII.

All Science Journal Classification (ASJC) codes

  • Information Systems
  • Computer Networks and Communications


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