Success Factors in Alternative Delivery Channels of Banking: Innovative Solutions to Meet the Challenges of Bank of the Future


  • Saila Sarmin Rapti Joint Director, Department of Research, Bangladesh Bank, Bangladesh
  • Md. Masudur Rahman Deputy Director, Department of Research, Bangladesh Bank, Bangladesh



Alternative Delivery Channel, ATM, Mobile Banking, Internet Banking, Agent Banking, Credit/Debit Card, COVID-19


This paper aims at understanding the success factors in the Alternative Delivery Channel (ADC) of different scheduled commercial banks in Bangladesh. This research includes the most commonly used channels provided by commercial banks such as ATM, POS, Credit/debit card, mobile banking, internet banking, agent banking, etc. The research methodology involves collecting both primary and secondary data. The primary data was sourced from the questionnaire prepared to find out the significant factors that responsible for the successful venture of any alternative delivery channel of the scheduled banks. The clients were selected based on their services received from ADCs and the sample size is 144. The study also focuses on the reasons why some banks are so successful in this area, why some banks are not. For the secondary data, the authors have taken the individual bank’s data from Bangladesh Bank. The secondary data enabled to assess of the present scenario of the ADC facilities of the commercial banks in Bangladesh. The study will help policymakers to detect the challenges of promoting alternative delivery channels in the banking sector and make solutions to meet the challenges of the future banking system.


Ahmad, A. E. M. K., & Al-Zu’bi, H. A. (2011). E-banking functionality and outcomes of customer satisfaction: an empirical investigation. International Journal of Marketing Studies, 3(1), 50-65.

Alam, M. M. R., Mehdee, T., Yesmin. R., and Hossain, Z. (2017). Alternative Delivery Channels: Opportunities and Challenges of the New Banking Environment. Banking Research Series-2017. Bangladesh Institute of Bank Management.

Angelakopoulos, G., & Mihiotis, A. (2011). E-banking: challenges and opportunities in the Greek banking sector. Electronic Commerce Research, 11(3), 297-319.

Bangladesh Bank. (2019). Annual Report 2018-19. Bangladesh Bank. Dhaka.

Baumann, C., Hamin, H., Teoh, W. M. Y., Chong, S. C., & Yong, S. M. (2013). Exploring the factors influencing credit card spending behavior among Malaysians. International Journal of Bank Marketing.

Bin Sadique, S., Shohrowardhy, H. S., & Hassan, H. (2016). Customer Perception On Alternative Delivery Channel (Adc) Of Banks In Bangladesh. USV Annals of Economics & Public Administration, 16(2).

Bony, S. Z., & Kabir, F. (2013). Practice of E-banking in commercial bank: An empirical study in Bangladesh. International Journal of Business and Social Research, 3(5), 168-177.

Daniel, E. (1999). Provision of electronic banking in the UK and the Republic of Ireland. International Journal of Bank Marketing.

Floh, A., & Treiblmaier, H. (March 26, 2006). What keeps the e-banking customer loyal? A multigroup analysis of the moderating role of consumer characteristics on e-loyalty in the financial service industry. A Multigroup Analysis of the Moderating Role of Consumer Characteristics on E-Loyalty in the Financial Service Industry.

Gatto, J. G. (1996). U.S. Patent No. 5,546,523. Washington, DC: U.S. Patent and Trademark Office.

Giao, H. N. K. (2019). Customer Satisfaction towards ATM Services: A Case of Vietcombank Vinh Long, Vietnam. Journal of Asian Finance, Economics and Business, 6(1), 141-148.

Gupta, D. K., & Gupta, D. (2013). Marketing Strategies of Commercial Banks in India with Reference to Alternate Delivery Channels-Part I-Public Sector Bank’s Edge. Available at SSRN2329245.

Hway‐Boon, O., & Yu, C. M. (2003). Success factors in e‐channels: the Malaysian banking scenario. International Journal of Bank Marketing.

Kadir, H. A., Rahmani, N., & Masinaei, R. (2011). Impacts of service quality on customer satisfaction: study of online banking and ATM services in Malaysia. International Journal of Trade, Economics and Finance, 2(1), 1.

Karjaluoto, H., Mattila, M., & Pento, T. (2002). Electronic banking in Finland: Consumer beliefs and reactions to a new delivery channel. Journal of Financial Services Marketing, 6(4), 346-361. DOI:10.1057/palgrave.fsm.4770064.

Khalfan, A. M., & Alshawaf, A. (2004). Adoption and implementation problems of e-banking: A study of the managerial perspective of the banking industry in Oman. Journal of Global Information Technology Management, 7(1), 47-64.

Khalilov, M. C. K., & Gündebahar, M. (2012). XTM: An alternative delivery channel in Turkish banking sector. Procedia-Social and Behavioral Sciences, 57, 373-380.

Kumbhar, V. M. (2011). Alternative Banking Channels and Customers’ Satisfaction: An Empirical Study of Public and Private Sector Banks. International Journal of Business and Management Tomorrow, 1(1), 1.

Liébana-Cabanillas, F., Muñoz-Leiva, F., Sánchez-Fernández, J., & Viedma-del Jesús, M. I. (2016). The moderating effect of user experience on satisfaction with electronic banking: empirical evidence from the Spanish case. Information Systems and e-Business Management, 14(1), 141-165.

Maungu-MBA, O. D. (2015). An investigation of the influence of alternative financial delivery channels on the performance of commercial banks in Kenya.

Mehmood, N., Shah, F., Azhar, M., & Rasheed, A. (2014). The factors affecting e-banking usage in Pakistan. Journal of Management Information System and E-commerce, 1(1), 57-94.

Noor, M. M. (2011). Determining critical success factors of mobile banking adoption in Malaysia. Australian Journal of Basic and Applied Sciences, 5(9), 252-265.

Nupur, J. M. (2010). E-banking and customers’ satisfaction in Bangladesh: An analysis. International Review of Business Research Papers, 6(4), 145-156.

O’Keefe, G., Bachman, C., & Oyier, O. M. (2015). Alternative Delivery Channels and Technology: Handbook (111344), 1-104. The World Bank.

Padachi, K., Rojid, S., & Seetanah, B. (2007, January). Analyzing the factors that influence the adoption of internet banking in Mauritius. In Proceedings of the 2007 Computer Science and IT Education Conference, 559-574.

Rahman, M. M. (2009). E-banking in Bangladesh: Some policy implications. Policy notes.

Salimon, M. G., Yusoff, R. Z., & Mokhtar, S. S. M. (2016). The influence of e-satisfaction, e-trust, and hedonic motivation on the adoption of e-banking and its determinants in Nigeria: A pilot study. Mediterranean Journal of Social Sciences, 7(1), 54-54.

Sandada, M., Simbarashe, N., & Shamhuyenhanzva, R. (2016). Determining the impact of selected success factors on the adoption of e-banking in the Zimbabwean banking industry.

Sathye, M. (1999). Adoption of Internet banking by Australian consumers: an empirical investigation. International Journal of Bank Marketing.

Shaikh, A. A., & Karjaluoto, H. (2016). On some misconceptions concerning digital banking and alternative delivery channels. International Journal of E-Business Research (IJEBR), 12(3), 1-16.

Shah, M. H., Braganza, A., & Morabito, V. (2007). A survey of critical success factors in e-Banking: an organizational perspective. European Journal of Information Systems, 16(4), 511-524.

Shamsuddoha, M. (2008). Electronic banking in Bangladesh. Journal of Business Solutions, 1(2).

Sharma, H. (2011). Bankers’ Perspectives on E-Banking and Its Challenges: Evidence from North India. IUP Journal of Bank Management, 10(4), 61.

Shohrowardhy, H. S., Sadique, S. B., & Hassan, H. M. (2016). Customer Perception on Alternative Delivery Channel (ADC) of Banks in Bangladesh. The USV Annals of Economics and Public Administration, 16(2 (24)), 36-45.

Sinha, I., & Mukherjee, S. (2016). Acceptance of technology, related factors in the use of off-branch e-banking: an Indian case study. The Journal of High Technology Management Research, 27(1), 88-100.

Sohail, M. S., & Shaikh, N. M. (2008). Internet banking and quality of service. Online Information Review.

Sohrabi, M., Yee, J. Y. M., & Nathan, R. J. (2013). Critical Success Factors for the Adoption of e-Banking in Malaysia. Int. Arab. J. eTechnol., 3(2), 76-82.




How to Cite

Rapti, S. S., & Masudur Rahman, M. (2022). Success Factors in Alternative Delivery Channels of Banking: Innovative Solutions to Meet the Challenges of Bank of the Future. Asian Journal of Managerial Science, 11(2), 12–25.