Abstract:
Purpose of the study: The aim of this study is to find out about difference in bank
customers’ preference regarding use of the alternate delivery channels in Karachi,
Pakistan. Also, the objective ol this research is to explain fundamental demographic
factors and service delivery variables that may have significant influence over the use of
Alternative Delivery Channels (ADCs) by banking customers in Pakistan.
Research Methodology: This confirmatory research adopts deductive approach to
explain impact of several independent factors over the dependent variable of use of
ADCs. Sample type is non-probability and a mixed method is used to collect both
quantitative and qualitative data from respondents. Convenience sampling technique is
used to collect primary data by way of structured questionnaires from the bank account
holders.
Findings of the research: This study found significant association between
demographic variables of gender, education level and income with the adoption of
ADCs. Also, the service delivery variables of time-savings and convenience were found
to have significant influence on the use of ADCs by the customers. This study reveals
that age, factor of cost savings and transaction security have insignificant impact on
customers to induce preference of using ADCs. Moreover, this research work highlights
that customers differ in their preferences to use direct bank channels.
Practical implications: When the banking sector is challenged with the transition from
traditional branch banking to modem branchless banking, this research is of paramount
importance for the decision makers to review customer dynamics and revise their ADCs
promotion and offerings based on the information of current variables that have
significant influence over the usage and adoption of these diversified banking channels.
