SERVICE ASSESSMENT

Service Assessment

Service Assessment

Introduction

The service that has been assessed in the paper is “Branch Banking”. The branch banking is considered to be an important operation from the view point of the bank itself. However due to various technological advancements in the banking sector, the branch banking is at its decline making the banks to close their large number of branches in different parts of the world (Burgess, 2005).

Demographics of Service

The current target market of the branch banking is the young generations that have got the large part of wealth in the present society of the United States. The demographics of services of the branch banking have been changing with the passage of time. The main factors that are usually observed in the branch banking include age and the household incomes. Other important demographics involved are the transfer of wealth from old to young generation and age of the customers. The level of education, gender and ethnicity are also considered to be the important demographic variables that are considered by the banks to become customer centric (Lamb, 2013) (Burgess, 2005).

Percentage of U.S. households using electronic banking technologies

The important demographic change that has been observed in the branch banking is that of the various segments in the society have become simply more informed about their investment options. The young consumers in the society are prone to avail cheap investment opportunities. Another important demographic change in the branch banking is that of the large part of the population has been consuming more as compare to what they are saving (Peter, 1982) (Lamb, 2013).

PEST Analysis

The branch banking services that have been declined in the recent decades occurred due to the changing social, technological, legal and economical variables (Lamb, 2013).

Political Change

The political system that is also considered to be an important factor in determining the extent of branch banking services has affected the banking transactions. The political system has mandated various regulations in the banking sector that made the customers to avail online banking services rather than personally visiting the banks. The political regulations have therefore played an important role in the decline of the branch banking services thereby making the banks to enhance the effectiveness of the branch banking (Lamb, 2013) (Peter, 1982).

Economic Change

The important economic change that has been observed in the branch banking is that of the introduction of various online banking services that are aimed at reducing the cost of the customers while performing financial transactions. The reduction in the transaction cost has made the customers to decline the usage of branch banking and instead made them to avail the online banking services. This economic change that has been observed in the recent years within the branch banking is mainly attributed to the technological advancements in the banking sector. Thus the branch banking needs to facilitate the customers on priority as compare to that of the online consumer banking in order to balance the decline in their branch banking services (Peter, 1982) (Peter, ...