Online systems increase transaction costs?

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) -

Paul

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

Paul United States

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

Aleh Matus

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

Aleh Matus United States

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

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