Implications for Strategy and Industrial Change
Edited by Ken Green, Marcela Miozzo and Paul Dewick
Chapter 5: Consumers and Suppliers as Co-Producers of Technology and Innovation in Electronically Mediated Banking: The Cases of Internet Banking in Nordbanken and Société Générale
Staﬀan Hultén, Anna Nyberg and Lamia Chetioui 1. INTRODUCTION After a very media-hyped start many start-up e-banks now face serious economic problems. In contrast the traditional banks using a multi-channel strategy are rapidly gaining market share in the Internet channel. Internet banking is the latest step in the development of distance banking. Internet and other distance banking services hold interesting properties for the banking ﬁrms and for the customers. The bank’s principal beneﬁts are increased customer retention and lower costs due to the transfer of work to the customers. The customers’ most important beneﬁts are increased accessibility of the bank service, lower service charges and avoiding having to wait to be helped by a teller. The Internet is not only a new distribution channel for the bank sector but it also modiﬁes the bank sector’s competitive landscape. New competitors, for example specialized share traders on the Internet, specialized mortgage services on the Internet and Internet banks without bank branches, have attacked the banks by promising to provide a more rapid and cheaper service. Information and communication technologies (ICTs) have already resulted in two evolutionary change processes in the banking industry. In a ﬁrst development stage they supported the processing of the bank’s internal business and inter-bank transactions. In a second development stage they became the fastest channel to get access to the capital markets and permitted the creation of global electronic marketplaces. Today, ICTs 92 Consumers and suppliers in electronically mediated banking 93 provide support...
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