How does cannibalisation risk shape channel decisions?

Institutions hesitate to scale digital channels if doing so erodes revenues from intermediaries like advisors or brokers. Cannibalisation can reduce margins and destabilise incentive models. Strategies to mitigate risk include tiered incentives, channel segmentation, and hybrid fulfilment models. Banks often manage conflicts by segmenting complex products to advisors and routine transactions to digital platforms. Insurance firms carefully calibrate broker commissions to protect relationships while enabling online sales. References: BCG, 2023; McKinsey, 2022.