Technological developments in the banking and its effects on alternative distrubution channels

During the 2000's, digital channels have become the fastest growing field in the banking industry. Branch banking and the emergence and progression of digital channels and evaluation of the modern applications of digital channels in banking is the scope of this study. Within the scope, digital channels in banking was surveyed and compared with branch banking. The goal of this study is understanding the correlation of the customers demographic variables with customers use of banking channels (Branch, Internet, ATM, Card Systems, Telephone), distribution of their transactions to channels and their banking preferences. A survey was prepared as the data collection technique about the use of banking channels. The research is planned in third parts. In the first part, new generation banking concept, the emergence of the digital channels in banking and its historical development were examined and its types were explained according to their scope and activity area. In the second part, past to present evolution of the services of digital channels in Turkish banking industry was studied. With respect to development of electronic banking, general situation of the ATM, card systems, telephone and internet banking which are the product line of the digital channels were analyzed. In the third part, a survey was carried out about which were effective on the reasons of customers' banking services preferences and analysis and findings were included. Keywords: Banking, Distribution Channels, Mobile Banking, Internet Banking, ATM, Card Systems