1. IS 356 IT for Financial Services Banking and Financial Portals (Account Aggregation and CRM) November 20, 2015 http://www.evergreen.loyola.edu/~pptallon/is356.htm

2. November 20, 2015© Paul Tallon2/16

3. November 20, 2015© Paul Tallon3/16 Portals Enduring and profitable Customer Relationships Financial Portal Strategy Aggregated content from a variety of external providers Creation of a central point on the web where consumers can handle all of their financial affairs Types of Portals

4. November 20, 2015© Paul Tallon4/16 Financial Portals  One-stop financial management solution  General notion of online banking with the addition of non-banking services including brokerage, insurance, bill payment, investments, etc…  1-to-1 relationships with customers leading to better understanding of customer requirements and identification of leverage opportunities – price, convenience and value-added services – drive new business (customer retention vs. acquisition) – increase cross sales to existing customers – increase service quality (increase switching costs) – reduce service costs (reduce transaction costs)

5. November 20, 2015© Paul Tallon5/16 Aggregation Service Bank A Login & Password from Internet Bank B Account info Aggregator logs in masquerading as customer Aggregated View of Accounts How Aggregation Works

6. November 20, 2015© Paul Tallon6/16 Yodlee (My Financial Portal)

7. November 20, 2015© Paul Tallon7/16 PROBLEM!  Messages are scraped in HTML only  This describes data appearance but not the meaning of the data  So… the aggregator must know exactly where on the external website the account balance is situated  Anytime there is a change in the layout or design of the website, the aggregation must adjust their scraping algorithm which needless adds cost and complexity to their business model Screen Scraping

8. November 20, 2015© Paul Tallon8/16

9. November 20, 2015© Paul Tallon9/16 Financial Supermarket Model Laudon & Traver, Ecommerce, p. 594, Table 11.7

10. November 20, 2015© Paul Tallon10/16

11. November 20, 2015© Paul Tallon11/16 Non-Financial Institutions  Projected boom in online investment and banking has also attracted non-financial institutions  Financial portals provide comparison shopping services and steer consumers to online providers for independent financial advice and financial planning  Generate revenue from advertising, referral fees, and subscription fees  Financial portals add to online price competition  Thwart the ambitions of the large banks that would like to lock consumers into a single branded financial supermarket in which switching costs from a single, all purpose account would be considerable

12. November 20, 2015© Paul Tallon12/16

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14. November 20, 2015© Paul Tallon14/16 ING café Wainwright Bank Laurentian Bank (Can)

15. November 20, 2015© Paul Tallon15/16 The Future of Banking

16. November 20, 2015© Paul Tallon16/16 For Next Class…  Shinsei case study  One page summary due next class  Third blog is due Nov. 11  In class exam on Nov. 25 (covers brokerage and banking industries)