eCommerce for Financial Institutions in Germany and the USA

1. Executive Summary

Online banks dig for continued quantitative growth in account number, transaction, and value of transaction since these factors are essential for valuation of the company at the stock exchange.

The market for online financial services, or “eFinance”, is growing in Europe and the US. The German market is the biggest but not the fastest growing market within Europe. Financial institutions have to consider trends in the market in order to survive and prosper in this very dynamic and competitive environment. Simple products like current account, saving accounts and brokerage, incl. mutual funds, as well as personal loans will be sold more on the Internet. However, customers are using the Internet as an information tool but close the contact often at physical branches. In order to avoid this miss match, online financial institutions will be forced to obtain core competence in:

• Customer relationship management
The ability to capture, manipulate, and utilise customer data will be one of the principal keys in the competition for market share.
• Multi-channel banking
Customers increasingly demand being served any time, any place, anywhere. Meanwhile, employees and suppliers alike are more likely to be connected to the financial institution’s architecture. This addi-tional complexity will require innovative solutions by financial institu-tions, and most likely, a real-time online platform.
• Customer satisfaction
Technology problems such as poor system performances or poor execution of orders are a source of much frustration for customers. A dissatisfied customer with a greater number of options in the Internet is less likely to remain loyal for long.
• Competitive differentiation
Technology supports new product and feature development, as well as customisation, which allows online financial institutions to differentiate their offer from their competitors. Branding requires a sophisticated differentiation strategy.

The online financial institution faces a number of challenges: a heavy transaction load, fast moving shifts in channel usage and a requirement to sew all the channels together. There are many requirements for the success of this business environment: security, data management, degree of customisation, and range of products and features.
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Inhaltsverzeichnis (Table of Contents)

• Executive Summary
• Company Overview
• Problem Definition
• History of Retail Banking
• Technical Standards for Online Financial Services
  • Impact for Online Financial Institutions
• Competition
  • Implication for Financial Institutions
• Opportunities
  • Market Trends
    • Implication for Financial Institutions
  • Clients
    • Implication for Financial Institutions
  • Price
    • Implication for Financial Institutions
  • Products
    • Implication for Financial Institutions
  • Distribution
    • Implication for Financial Institutions
• Threats
  • Implication for Financial Institutions
• Strategic Alliances
  • Implication for Financial Institutions
• Innovations and Visions
  • Implication for Financial Institutions
• The US Market
• Implication for XXL Internet AG
• Abbreviation
• Bibliography
• Sources

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This master thesis aims to provide a comprehensive analysis of electronic commerce for financial institutions in Germany and the United States of America, with a specific focus on XXL Internet AG. The thesis explores the historical development of retail banking, analyzes technical standards for online financial services, and examines the competitive landscape. It also investigates the opportunities and threats posed by the evolving online financial services market, including market trends, client behavior, pricing strategies, product offerings, and distribution channels.

• The impact of electronic commerce on financial institutions.
• The key factors influencing competition in the online financial services market.
• The opportunities and threats presented by market trends, client behavior, and technological advancements.
• The role of strategic alliances in the online financial services sector.
• The specific implications of the online financial services market for XXL Internet AG.

Zusammenfassung der Kapitel (Chapter Summaries)

The initial chapters of the thesis offer an overview of the company XXL Internet AG, define the problem under investigation, and provide historical context for retail banking. The following chapters delve into technical standards for online financial services, highlighting their impact on online financial institutions and analyzing the competitive landscape. The analysis then explores the opportunities and threats associated with the online financial services market, including market trends, client behavior, pricing strategies, product offerings, and distribution channels.

Schlüsselwörter (Keywords)

The key focus areas of this master thesis include electronic commerce, financial institutions, retail banking, online financial services, technical standards, competition, opportunities, threats, strategic alliances, market trends, client behavior, pricing strategies, product offerings, distribution channels, and the specific implications for XXL Internet AG in the German and US markets. This research also explores the role of emerging technologies and innovation in shaping the future of online financial services.

Details

• College: Reutlingen University (Southeatern Louisiana University)
• Grade: 1,3 (A)
• Author: Klaus Schmidt (Author)
• Publication Year: 2001
• Pages: 91
• Catalog Number: V166
• ISBN (eBook): 9783638101226
• Language: English
• Tags: eCommerce Bank USA Deutschland CRM Internet Electronic Banking Technical Standards Market Trends Strategic Alliances