We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byAnna O'Neil
Modified over 3 years ago
Client loyalty in the cyberfinance-world Forum Banca & seguros Lisbon, December 3 2002 CharlesGoldfingerwww.gefma.com
© Charles Goldfinger GEF 2 Presentation plan Digital tornado and financial hurricane Cyberfinance: lessons of experience No disintermediation Triumph of click and mortar Cyberfinance challenges From multi-channel to cross-channel Smart customer Capturing value
© Charles Goldfinger GEF 3 Digital tornado There is no Internet hype ! We tend to overestimate the speed of change in the short term and underestimate in the longer run - Unprecedented rate of growth Years to reach 50 MM users Radio - 38 years TV - 15 years Internet - 5 years Unprecedented scope of change Telecommunications realm Information Technology Realm Business realm
© Charles Goldfinger GEF 4 Digital tornado Three dimensions of Internet revolution Telecommunication protocol Infinite connectivity Information architecture Network – computer convergence Business model Abundance management
© Charles Goldfinger GEF 5 Digital tornado Information architecture From centralised Master - slave...to distributed Client - server..to ubiquitous Peer - to- peer Network is the computer Computer is a network and
© Charles Goldfinger GEF 6 Digital tornado Infrastructure - network dissociation From physical to virtual From dedicated to shared Before Network Infrastructure Now Network Infrastructure
© Charles Goldfinger GEF 7 Digital tornado Business Model impact No disintermediation Growing demand for intermediation Markets Systems Middleware Upheaval …but no disruption Unlimited connectivity Relations proliferation Functional confusion Infoglut Complexity Transaction costs fall Transactions volume explosion Markets proliferation Fragmen- tation Integra- tion
© Charles Goldfinger GEF 8 Financial hurricane From geofinance …to eurofinance …and cyberfinance
© Charles Goldfinger GEF 9 Financial hurricane Cyberfinance Financial services is the domain where Internet impact has been the strongest E-commerce market share (in % of total turnover)
© Charles Goldfinger GEF 10 Cyberfinance Ubiqutuous reach Retail Banking Financial markets Insurance Fund management Financial Data Wholesale banking
© Charles Goldfinger GEF 11 Cyberfinance New configuration E-Banking E-markets B2B banking Financial Portals Asset management Risk management
© Charles Goldfinger GEF 12 Cyberfinance Preliminary lessons of experience E-finance is only beginning Blurring boundaries Finance Technology Information Transaction Financial institutions Technology providers Key role of incumbents « Click and mortar » model dominant All finance is becoming cyberfinance
© Charles Goldfinger GEF 13Cyberfinance Lessons of experience: Internet banking Initial prophecies Low costs Ease of entry Revolutionary impact ChannelCost per transaction Full Service BranchUSD 1.070 TelephoneUSD 0.540 ATM Full ServiceUSD 0.270 PC BankingUSD 0.015 Internet WWWUSD 0.010 BAH famous transaction cost diagram Killer application !
© Charles Goldfinger GEF 14 Cyberfinance Lessons of experience: Internet banking Iceberg costs Implementation complexity Client acquisition Difficult entry Obstacle course Not a Killer application ! No revolutionary impact
© Charles Goldfinger GEF 15 Cyberfinance Lessons of experience: Internet banking No salvation outside click and mortar Success stories Nordea Wells Fargo Bradesco Critical success factors Integration Technology Marketing Business models
© Charles Goldfinger GEF 16 Cyberfinance Key challenges Technology Not just another channel Customers End of asymmetry Smart customer Business model Capturing value
© Charles Goldfinger GEF 17 Cyberfinance Technology challenge From multi-channel architecture…. Branch ATM POS Bank Telephone banking On-line banking
© Charles Goldfinger GEF 18 Cyberfinance Technology challenge …to cross-channel architecture Branch ATM POS Smart Card TV Infoappliances Mobiles Extranets TCP/IP
© Charles Goldfinger GEF 19 Cyberfinance Technology challenges Integration imperative From e-finance to m-finance Mobile PC client Martini banking Anytime Anywhere Anyway Anytime Anywhere Anyway
© Charles Goldfinger GEF 20 Cyberfinance End of information and knowledge asymmetry Goldfingers law Customer is always smart DistributorProducer Consumer Customer challenge Three structural trends Lower transactions costs Market power shift
© Charles Goldfinger GEF 21 Cyberfinance Customer challenge Willingness to search Quality imperative Willingness to shop Willingness to pay Failure tolerance Loyalty
© Charles Goldfinger GEF 22 Cyberfinance Customer challenge Conflicting trends Time pressures Convenience One-stop shop Low search costs Better information Best of breed Financial supermarkets Specialised providers
© Charles Goldfinger GEF 23 Cyberfinance Customer challenge Mixed experience Financial supermarkets What synergies for customers ? Internal turf wars and co-ordination costs Cross-selling challenge Specialised providers Preserving talent Maintaining competitive advantage Avoiding mid-size trap Too small or too big
© Charles Goldfinger GEF 24Cyberfinance Customer challenge Aggregation Third way: Aggregation Best of both approaches Advantages Convenience Broad choice Capitalising on common standards Hurdles Permanent tension between aggregators and service providers Brand primacy Revenue sharing Privacy protection Customer trust
© Charles Goldfinger GEF 25 Cyberfinance Customer challenge Aggregation experience to date More developed in US than in Europe Tradition of vertical integration in Europe Challenge of cross-border integration Focus on Information consolidation Technology convergence Not so common standards No customer rush Yoodlee Less than 1 million clients
© Charles Goldfinger GEF 26 Cybefinance Business model challenge Great difficulty of catching value Willingness to pay Growing importance of indirect revenues Manchester United model 80 000 paying ticketholders 50 000 000 non-paying fans Retail banking model Float vs. service services = Purchase Consumption Consumption Purchase
© Charles Goldfinger GEF 27 Cyberfinance Business model challenge Proliferation of pricing systems and mechanisms Direct payments Third party payments Advertising Supplier rebates Services commissions Spread capture Catch value when and where you can
© Charles Goldfinger GEF 28 Cyberfinance Business model challenge From CRM to DTM DTM D ynamic T ransaction M anagement Control Multiple Revenue Streams Simulate & analyze dynamic pricing System Performance, Scalability and Real Time Capture, Benchmark and Share Transaction Value
GEF The State of E-finance and E-Payments in the World Charles Goldfinger UNCTAD Geneva, October 23,
Essentials of Management Information Systems, 6e Chapter 4 The Digital Firm: Electronic Business and Electronic Commerce 4.1 © 2005 by Prentice Hall The.
© Prentice Hall, 2005 Business In Action 3eChapter Developing Distribution and Promotional Strategies.
OHT 5.1 © Marketing Insights Limited 2004 Chapter 5 E-business Strategy.
25 seconds left….. 24 seconds left….. 23 seconds left…..
Alter – Information Systems 4th e d. © 2002 Prentice Hall 1 Moving Towards E-Business As Usual.
E-Marketplaces. Electronic CommercePrentice Hall © E-Marketplaces Markets (electronic or otherwise) have three main functions: 1.Matching buyers.
Jeopardy Topic 1Topic Q 1Q 6Q 11Q 16Q 21 Q 2Q 7Q 12Q 17Q 22 Q 3Q 8Q 13Q 18Q 23 Q 4Q 9Q 14Q 19Q 24 Q 5Q 10Q 15Q 20Q 25 Final Jeopardy.
EC Strategy Implementation Coping with Transformation Dick Scudder.
Terms. 1. Globalization 2. Financing 3. Inputs.
Today and Tomorrow 12 th Edition Understanding Computers Chapter 11: E-Commerce.
Prentice Hall, Inc. © STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 1 Basic Concepts of Strategic.
BT Wholesale October Creating your own telephone network WHOLESALE CALLS LINE ASSOCIATED.
We will resume in: 25 Minutes We will resume in: 24 Minutes.
PSSA Preparation. Question 1(no calculator) D Question 2 (no calculator)
17 Chapter 17 Pricing in Retailing RETAIL MANAGEMENT: A STRATEGIC APPROACH, 9th Edition BERMAN EVANS.
Designing and Managing Integrated Marketing Channels Marketing Management, 13 th ed 15.
May 2007 Global Technology & Operations | Network Computing Group | Global Enterprise Access & Desktop Services | Network Services Document Release Level/Version:
Marketing Channels and Supply Chain Management Chapter 13.
Making Your Business Grow Back to Table of Contents.
1 Introduction to Transportation Systems. 2 PART I: CONTEXT, CONCEPTS AND CHARACTERIZATI ON.
Title Subtitle 1. A. B. C. C. * D. Click to try again! INCORRECT.
Business Transaction Management Software for Application Coordination 1 Business Processes and Coordination.
Marketing in the Digital Age ROAD MAP: Previewing the Concepts Identify the major forces shaping the new Digital Age. Identify the major forces.
1 Taxpayers, Trends, and the World Wide Web Larry Wolfe Senior Vice President Intuit Inc.
ABC Technology Project Mrs. Kiddle. ABCs of Technology Word 1 Word 2 Word 3 Word 4 Word 5 Word 6 Word 7 Word 8 Word 9 Word 19 Word 20 Word 21 Word 22.
Januar 2005 S M T O T F L
Slide 1 Advanced Piloting Cruise Plot. Advanced Piloting Cruise United States Power Squadrons ® Part I Question 1 Question 2 Question 3 Question 4 Question.
Copyright © 2001 by Houghton Mifflin Company. All rights reserved. 1 Economics THIRD EDITION By John B. Taylor Stanford University.
Language Technologies and the Third Platform for Innovation Rafael Achaerandio Research Director IDCResearch.
Understanding Networked Applications: A First Course Chapter 5 by David G. Messerschmitt.
1 1 Chapter 1 Introduction to Electronic Commerce.
Chapter 14 Data Mining Throughout the Customer Life Cycle.
McDonald’s calendar 2009 January
1 Operations Management, Competitiveness, and Operations Strategy Lecture 1.
1 Is It Time for a Wake Up Call? Distribution Conference Reno 2005.
WEEK 1 You have 10 seconds to name…
1 Banking Services for Everyone? Barriers to Bank Access and Use Around the World Thorsten Beck Asli Demirgüç-Kunt Maria Soledad Martinez Peria The World.
Business Markets and Business Buyer Behavior 6 Principles of Marketing.
Addition 1’s to
1 Undirected Breadth First Search F A BCG DE H 2 F A BCG DE H Queue: A get Undiscovered Fringe Finished Active 0 distance from A visit(A)
Banking and E-Commerce Group ‘A’ April 23 rd 2003.
Chapter 5 Test Review Sections 5-1 through 5-4. Simplify each expression. 1)2) 3)4) 5) 6)
Activity 1………….Why Do You Need A Bank? Activity 2………The Many Services of a Bank Activity 3…The ABCs of a Chequing Account Activity 4………Opening a Chequing.
© 2005 Prentice Hall12-1 Chapter 12 Global Marketing Channels and Physical Distribution Power Point by Kristopher Blanchard North Central University.
Chapter 7. Discuss Intranet and its benefits Discuss e-commerce and various forms of e-commerce Discuss the security issues in the e-commerce environment.
Chapter 6 Public B2B Exchanges and Support Services.
© 2017 SlidePlayer.com Inc. All rights reserved.