Why do institutions segment customers by channel?

Segmentation reflects differences in economics, risk, service expectation, and adoption behaviour. Direct-digital channels suit mass-market, low-complexity products; advisor channels handle complex or high-value cases; branches deliver credibility for risk-averse clients; embedded channels offer convenience. Proper segmentation ensures resource allocation, pricing alignment, and optimal channel mix. Research shows channel segmentation improves engagement, conversion, and profitability (BCG, 2023; Gartner, 2021).