ABSTRACT
This chapter provides an overview of the nature and management of distribution channels for financial services. It begins by exploring the distinguishing features associated with channels of distribution, examines the different channels that may be used to deliver financial services to the target market and discusses their advantages and disadvantages. The concept of direct/indirect distribution is pretty straightforward and unambiguous within the context of tangible goods markets. Although the needs expressed for the range of financial services are easily understood and readily appreciated, the motivation on the part of consumers to engage in proactive product search and buying behaviour is more muted. Within the consumer goods domain, retailing represents the dominant channel through which goods are purchased. The logistical dimensions of tangible goods distribution is often referred to as supply chain management. The costs associated with the distribution and set-up of a range of investment-related products can impose significant pressure upon capital.
