SENECA COLLEGE, TORONTO
E-Payment Systems & Banking
As Taught by Prof. Tim Richardson School of Marketing and e-Business, Faculty of Business

SECTION 3©
last updated 2001 August 08
.

Banking

E-commerce Security: Weak Links, Best Defenses by Dr. Anup Ghosh
Chpt 1

Banking on the Internet

page 4.
"The Internet will make banking a much more competitive environment... local banks will now be competing with national and international banks whose Internet presence removes barriers of physical distance. In additiona  a number of "virtual" banks have now entered the market to compete with traditional banks for clients".
 

 

Banking
relationships
 
"When Loblaws came knocking in 1998, CIBC was prepared to do what no other Canadian bank would --  downplay its own brand and create something new: President's Choice Financial....The concept is simple: leverage relationships with key brands to acquire new banking clients."

five main reasons why the model works:

  • a lower acquisition cost per customer than traditional banks.
  • It capitalizes on well-established and trusted brands
  • There is no major sign-up barrier.
  • No cannibalization...does not compete for existing CIBC customers.
  • full spectrum of financial services is provided
http://www.nationalpost.com/scripts/printer/printer.asp?f=/stories/20010523/570024.html
Amicus now [May 2001] serves more than half a million customers and is adding more than 30,000 a month.
.
 

B2C

Banking
in person
vs
internet
 

B2C

Banking
in person
vs
internet
 
http://dailynews.yahoo.com/h/nm/20010808/wr/financial_banks_survey_dc_1.html
"The nationwide consumer poll showed 47 percent of Americans prefer do most of their transactions at
  their local branches, 18 percent prefer ATMs and only 4 percent prefer to bank online over the Internet."

While this August 2001 story sounds somewhat pessimistic, it should be understood that it is based on American consumers, not Canadians, and Canadian consumers have , in the late 1990's and early 2000's, been very progressive in trying new banking products (ie. INTERAC).

The weak thing about this story is that Reuters carried it without describing the context of why the study was done by this St. Louis based company. If you know the context, then you know the "spin" on the questions, ie, was it done for an association of bank tellers, ISP's, credit card conglomerate? - we don't know.