Online systems increase transaction costs?

Posted on February 24, 2010 12:08 by Aleh Matus

An interesting study was mentioned in the March 2010 issue of the Harvard Business Review magazine. The study suggests that while bank online systems improve customer retention rates, they also increase transaction costs to serve each customer.

The conclusion is rather unexpected, isn't it?



Comments

2/24/2010 1:43:37 PM #

Paul

Is it caused by the increased software maintenance costs or does the study have another explanation?

Paul United States

2/24/2010 2:24:47 PM #

Aleh Matus

Paul,

The research does offer another explanation for its results. Customers are generating a lot more activity online. They are doing things they have never been doing before.

Aleh

Aleh Matus United States

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