Internet retail banking A competitive analysis in an increasingly financially troubled environment

摘要

Purpose - The purpose of this paper is to examine the online retail banking industry and determinernif there is evidence that online banking will be a dominant player in the financial services retailrnmarketplace.rnDesign/methodology/approach - An analysis of 22 banks is conducted and it is determined thatrnthe barriers to entry that are identified may not be enough to prohibit a substantial number of entrantsrninto the marketplace.rnFindings - Using Porter's five-force model to conduct the industry analysis; online banking is still in its infancy, although with great potential. According to FDIC, while approximately 40 percent of the 10,623 banks and thrifts in the US market have a website, only 376 offer transactional internet banking at the time of the study. About 30 internet-only banks or a pure-play format operate in the USA. All of the web-only banks in the USA combined have about 250,000 depositors, out of the nearly six million customers who have stated that they do significant banking activities over the internet.rnPractical implications - Owing to the different types of potential suppliers, the suppliers in thernonline-banking industry do not appear to have as big a bargaining power in this industry as theyrnwould in another industry. Buyers, however, hold the keys to success in the online-banking industry.rnBuyers do not need the product that is offered due to the many substitute products available in thernmarket.rnOriginality/value - In the end, the rivalries among banks lead them to differentiating their internetrnbanking products which is what will afford one bank to have a competitive advantage over the rest ofrnthe market.