the role of banks in electronic markets: from direct to virtual banks
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The role of banks in electronic markets: from direct to virtual banks. Andrea CARIGNANI Università Cattolica del Sacro Cuore - Milano-. BATCH. REAL TIME. PC revolution. ?. Late 50’s. Mid 80’s. Today. early 70’s. mid 80’s. early 90’s. A management perspective of the IT evolution. - PowerPoint PPT PresentationTRANSCRIPT
The role of banks in electronic markets: from direct to virtual banks
Andrea CARIGNANI
Università Cattolica del Sacro Cuore - Milano-
A management perspective of the IT evolution
Early 70’sREAL TIME
mid 80’s
PC revolutionMid 80’searly 90’s
?Today
BATCHLate 50’searly 70’s
Today
BACK END
FRONT END
CUSTOMERIT IT
FRONT END
L’impatto dell’IT in banca oggi (2)
BACK END
FRONT END
CUSTOMERIT IT
BACK END
CUSTOMERIT IT
IT
ITIT
ITIT
I canali distributivi della banca nei prossimi dieci anni
• Internet
• PC
• Telefono
• Smart Card
• Sportelli leggeri
• ATM
• Televisione interattiva
• Sportello tradizionale
• Screen Phone
Source: Booz - Allen Hamilton: Internet Banking Survey
Internet Banking: una contraddizione?
Fonte: BlueskyInc
PC vs. Internet banking
ModemModem
Internet
BANCABANCA
Client software
Server software
Standard browser
PC vs. InternetIl software utilizzato dal cliente è creato, distribuito e aggiornato dal broker o da una società di servizi ad essa collegata.
Il software utilizzato dal cliente è un normale browser di navigazione
(Netscape, Internet Explorer, etc.).
La connessione avviene via linea telefonica e i costi di comunicazioni sono correlati alla distanza tra banca e cliente.
La capillarità di Internet permette al cliente di collegarsi alla propria
banca da qualsiasi parte del mondo con una spesa limitata.
Il software proprietario e il collegamento diretto sono strumenti per la fidelizzazione del cliente: essi rappresentano una sorta di "barriera tecnologica" verso il "mercato perfetto" reso possibile da Internet.
L'utente di Internet controlla con facilità l'andamento
dell'offerta del mercato e teoricamente può, con un click,
sostituire la banca che non soddisfa le sue esigenze.
L’architettura dell’Internet banking
Internet
Intranet della banca
Modem Internet Provider
InternetProvider
Cliente
Firewall
Sistema proprietarioFront enddi comunicazione
InternetBusinessServer
Banca diretta in Europa:i “first mover”
Dal trading online i nuovi casi di successo
Migration paths toward direct banking
Differenciation• different target markets• different products• different market strategies• different corporate cultures
Integration• all-encompassing target markets• shared distribution channels• uniform marketing strategy
branch bank
counselling bank
direct bank
direct
bank
counselling bank
The private banks in Germany decided to spin off standalone direct banks
Deutsche BankDeutsche Bank Dresdner BankDresdner BankHypoVereinsbankHypoVereinsbank CommerzbankCommerzbank
Cost Leadership asfull service provider
Discount Brokerage Discount BrokerageService orientation,Quality leadership among
direct banks
New Strategy!
Reintegration of Bank24
and branch banking
Internet/Online banking
1450 filiali
Phone banking 250 “isole” finanziarie
1800 ATM intelligenti6000 cash dispenser
Fonte: Deutsche Bank AG 3/99
400 promotori finanziari
Deutsche Bank 24: Sei canali-una sola banca
Advance BankCooperations, Outsourcing
Networking of Advance Bank
HeadofficeCentral Callcenter
München
InformationssystemeBeratungs & Betriebsgesellschaft(IBB)Mainframe
Schweinfurt
Hamburgische LandesbankSecurities Clearing & Settlement Hamburg
Wilhelmshaven
Frankfurt
Overflow Call Center
Duisburg
Eurocom
Postal Services
GZSCredit Cards Transactions
BankverlagPrint Forms
• Extensive Outsourcing
• Advance Bank retains the customer interface
• Separation of distribution/counselling and production of services
• Concentration on core competencies
• Innovative and extensive use of IT
• Long lasting network relationships
• Service Level Agreements (close to market mechanisms)
Back Office/Callcenter
Direct vs. Virtual Banks: A German Definition
Direct BanksFinancial Institutions that solely rely on electronic
distribution channels for the contact with their customers (inbound and outbound), hence abstain from
using branches
Telephone/Call Center FaxPC/Internet Mobile/SMS/Call Center
Scientific definition of the virtual enterprise
Virtual Enterprise“CONGLOMERATE OF LOOSELY COUPLED AUTONOMOUS
COMPANIES (PARTNERS), WHICH, IN GENERAL,ARE RELATED TOGETHER BY BILATERAL OR
MULTILATERAL CONTRACTS”
Bank ASp a rk o n to
AD ep o t
A
Kre d i tk a rteA
H yp o th e kA Virtual Bank
H yp o th e kA
Kre d i tk a rteB
D ep o t
C
Sp a rk o n to
D
w ei te re D ie n s t l e is tu n g e n
w ei te re D ie n s t l e is tu n g e n
Bank BSp a rk o n to
BD ep o t
B
Kre d i tk a rteB
H yp o th e kB
w ei te re D ie n s t l e is tu n g e n
Bank CSp a rk o n to
C
D ep o t
C
Kre d i tk a rteC
H yp o th e kC
w ei te re D ie n s t l e is tu n g e n
Bank DSp a rk o n to
D
D ep o t
D
Kre d i tk a rteD
H yp o th e kD
w ei te re D ie n s t l e is tu n g e n
Customer
Le banche tedesche e le strategie per la differenziazione
1. Focalizzazione sul mercato di massa: sfruttamento dei vantaggi di costo ottenibili attraverso i canali alternativi per offrire una ampia gamma di servizi finanziari.
2. Focalizzazione su nicchie di mercato (es. online brokerage)
3. Focalizzazione su qualità e servizi: orientamento a consulenza e servizi a valore aggiunto
Essere un operatore già affermato Le dimensioni sono fondamentali per realizzare economie di scala Rischio di dover affrontare un accesa “guerra dei prezzi”
Essere un operatore già affermato Le dimensioni sono fondamentali per realizzare economie di scala Rischio di dover affrontare un accesa “guerra dei prezzi”
Necessari grossi investimenti per l’affermazione del brand Il concetto di banca di qualità non è ancora riconosciuto dalla
clientela Offerta di prodotti e servizi di alta qualità attraverso canali
alternativi a prezzi più alti della banca tradizionale
Strategia Aspetti chiave
Italy and Germany on the net
Web presence Interactive sites Internet banking
Static pages Dynamic pagesDynamic pages
integrated with bank IS
General information on the bank products and
services
Interaction between baking and customers
through mail and scripts
Transaction services
La banca diretta in Italia:principali tendenze
Molti gruppi hanno optato per integrare i canali alternativi nella struttura distributiva tradizionale (multicanalità)
In pochi casi si è optato per una vera e propria differenziazione
Molto più spesso ci si è orientati verso una semplice affermazione del brand
Il trading online sta mobilitando molte realtà
Fino ad ora pochissime esperienze e iniziative orientate al Commercio Elettronico
Quale modello per la multicanalità?
MulticanalitàTelephone/Call Center
Fax
PC/Internet
Mobile/SMS/Call Center
Telephone/Call Center
Fax
PC/Internet
Mobile/SMS/Call Center
Canali complementari
Canali come centri di profitto
The theoretical model
Internal
External
subjectinvolvedin bankingactivities
approach tomarket andproducts
Static Dynamic
Internal RelationshipsInternal Relationships
Customer relationshipsCustomer relationships
Products diversificationProducts diversification
Virtual CooperationVirtual Cooperation
The “traditional bank”
Internal
External
subjectinvolvedin bankingactivities
Static Dynamic
Customer relationshipsCustomer relationships Virtual CooperationVirtual Cooperation
approach tomarket andproducts
Orientation internal relationships
Issue •Mainframes management•Communications betweenbranches and central databases•...............................................
IT •Client/Server architectures•Intranet•E-messaging.....•.........................
TraditionalBank
Real-timeEmergenceof the Virtual
BankBatch
Products diversificationProducts diversificationTraditional Bank
The “virtual bank” age
Internal
External
subjectinvolvedin bankingactivities
Static Dynamic
Virtual CooperationVirtual Cooperation
approach tomarket and
products
TraditionalBankReal-time
The VirtualBank age
Products diversificationProducts diversification
Traditional BankTraditional Bank
Orientation customer relationships
Virtual BankVirtual Bank
•Internet•ISDN•GSM•.........................
IT
•Cost reduction•Improved services•Identifying vendor alternatives•...............................................
Issue
Batch
The “virtual bank” maturity
Internal
External
subjectinvolvedin bankingactivities
Static
Fluid
Virtual Cooperation
approach tomarket andproducts
TraditionalBankReal-time
Virtual Bankmaturiy
Traditional Bank
Orientation products diversification
Virtual Bank
•Internet - phone integration•WEB-TV•Multimedia
IT
•Identifying cross-sellingopportunities•Managing multiple vendors/serviceproviders - least cost, best service.•...............................................
Issue
BatchVirtual Bank
age
Virtual Bank maturity
Dynamic
Considerations
Any global model able to consider both the technological and organizational aspects and the other exogenous and endogenous factors that fragment the financial world, has to be considered too difficult to create and manage.
Any global model able to consider both the technological and organizational aspects and the other exogenous and endogenous factors that fragment the financial world, has to be considered too difficult to create and manage.
The proposed framework has been used to perform a general analysis in our research,
but it is evident that a different mix of analysis instruments should produce
different reflections.
The proposed framework has been used to perform a general analysis in our research,
but it is evident that a different mix of analysis instruments should produce
different reflections.
The framework
Traditional Bank
Direct BankDirect Bank on
electronicmarkets
Value Network
subjectinvolvedin bankingactivities
approach tomarket andproducts
Internal
External
Static Dynamic
Banks on the Net
Internal
External
Subjects involved in banking activities
Fixed DynamicApproach to products and markets
Value networkValue network
“Customer retention”
“Market share”
newpartners/competitors
Banks focus on...
Traditional BankTraditional Bank
Direct Bank on EM
Direct Bank on EMDirect BankDirect Bank
La clientela bancaria italiana su Internet
Velocità del mezzo di comunicazione.Modo più facile di operare con la banca 40.48%
Comodità offerta dal mezzo di comunicazione.Poter operare da casa e dal posto di lavoro 52.68%
Risparmio di tempo. Indipendendenza dallo sportello. 30.31%
Disponibilità del servizio 24 ore su 24 26.80%
Commissioni ridotte 8.68%
Accedere a informazioni su prodotti e servizi finanziarisempre aggiornate e in tempo reale 13.49%
Indagine WMTOOLS (mag-99)
Banks on the Net
Internal
Fixed Dynamic
Traditional BankTraditional Bank
Direct BankDirect Bank Direct Bank on EM
Direct Bank on EM
Value networkValue network
Easiness
Price/Services
VAS
Customers focus on….
Approach to products and markets
Subjects involved in banking activities
External
