Strategies to Gain New Customers via Internet Banking
Disclaimer: This dissertation has been submitted by a student. This is not an example of the work written by our professional dissertation writers. You can view samples of our professional work here.
Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.
It includes the following topics:
a. A clear statement of the purpose of the thesis
b. Reasons for the study
c. Statement of problems
d. Purpose of the study
a. The purpose of the thesis:
If students have to write their M.B.A theses, which make a large number of significant errors, this is the main reason why their projects return for audit. Disappointed and falls, they need to proofread and to work for their dissertations. It has taken so much time for them to write their dissertations, and now they should start from the exact beginning. I shall show you how to avoid failure in the basic thesis and is, as you know about this failure. The most important thing about the dissertation writing is that you should understand clearly the purpose of the letter. The main purpose of writing of a dissertation is to provide a student with an opportunity to discover something new in the field of investigation. If the student can lead a deep, wise and profound Research, and can draw a clear conclusion about his / her research with any discoveries that present in the final dissertation, he reached the end. One more important thing is to writing a thesis that you should know about the latest discoveries in the field of investigation. That purpose, writing a dissertation, can be achieved through lectures and analysis of relevant sources thesis. A student should be aware of the position of the writer and should appreciate the critical position. There is no doubt that you will succeed in your dissertation, if you know the main purpose of writing a dissertation, which will be presented by me. Apply for M.B.A dissertation to get a piece of good advice. M.B.A dissertation is always willing to help you. For many courses forms part of a dissertation is to complete study for a degree. For some courses it is linked with work experience. It provides you with an opportunity to take a piece of individual research work and to really examine an aspect of the theme that you are studying closely.
b. Reasons for the investigation:
There are opportunities for the effective use of the Internet with regard to the banking industry. It is shown that may cause the appropriate application of today's cutting-edge technology at a significant competitive advantage for banks. This is illustrated by a scenario that focuses on the potentials of "advising on the Internet." For many consumers, electronic banking means 24-hour access to redeem with an automated counter machine (ATMS), or direct deposit of paychecks for the checking or savings accounts. But electronic banking now involved many different types of negotiations. Electronic banking, also known as electronic funds transfer (EFT), uses computer and electronic technology as a replacement for paper checks and other negotiations. EFTS is initiated through devices like cards or codes that you can, or that you authorize to accesses your account. Many financial institutions use ATM or debit cards and personal identification numbers (NEEDLES) for this purpose. One uses other forms of payment cards such as those that require the most, your signature or a check. The federal Electronic Fund Transfer Act (EFT Act) covers some electronic consumer negotiations. Although Internet banking has been widely adopted in developed countries, there is a group of customers resisting the services. In other words, Internet banking, although proven to be a successful innovation is not yet adopted by the laggards have become, and therefore have all the expectations of banks did not hit. Therefore, the purpose of dissertation is to identify the reasons for the sales resistance to Internet banking. The special interest is to explore resistance among those who pay a customer who already has valid contracts for Internet, but preferably pays, pay their bills through ATMs. The goal is to identify the characteristics that generate resistance to Internet banking and their connections to values of individuals. To achieve the objective, 30 Finnish bank customers have used the detailed Central finished interviewing approach and the laddering interviewing process.
c. Statement of problems:
To develop strategies for banks is to get people to pay online which was drawn a sample of 369 consumers from two universities in Kwazulu-Natal. Universities were chosen because they are an untapped e-commerce market segment. Workers at universities fit the profile of typical Internet users. Data were collected a used tissue based on survey. Statistical analysis has revealed that more men have used Internet banking than females. Automated telling machines custom was far greater than Internet banking usage. A large percentage of Internet bankers have used the service for burying account transfers and balance test / statements. Safety was the main issue for not paying in-line. Potential customers who have wanted guaranteed safety and loyalty rewards to get them to pay online. Internet banking has the potential to grow among tertiary institution workers. Some of the problems are explained below:
Negotiation / Farms Explorers Risk
Negotiation / edited risk arises holdings of dizziness, the error, system interruption, or other unexpected events that result in the inability of the institution to provide products or services. This risk exists in every product and service offered. The amount of the negotiated risk is influenced by the structure of the processing environment of the institution, including the types of services offered and the complexity of procedures and supporting technology.
In general, the credit risk of a financial institution to mere fact not equal, that a loan will be produced by an e-banking channel. However, management should consider providing an effective management information systems, including assuring the performance of portfolios produced bear pursued through e-banking channels.
LIQUIDITY, INTEREST RATE, PRICE / MARKET RISKS
The Funding and investment-related risks could increase with the e-banking initiatives of an institution that depends on the volatility and judgmental of the acquired deposits. The Internet provides institutions with the ability to bring to the global market their products and services. On Internet-based advertising programs can effectively yield-focused investors with potentially high-adapted resulting deposits. But Internet-produced deposits have the potential to attract customers, which may focus exclusively on rates, and a source of funding with risk characteristics that are similar to deposits has provided care. An institution may, by this potential volatility and its extensive geographical reach agreement and deposit account control to open the practice of personal meetings and involve the exchange of paper correspondence is expected.
COMPLIANCE / LEGAL RISK
Compliance and legal issues arising from the rapid growth in usage of e-banking is based, and the differences between electronic and paper methods. E-banking is essentially a new delivery channel where the laws and rules that may govern the electronic delivery of certain financial institution products or services to be ambiguous or even developing. Governing laws and regulations, consumers bargaining, require specific types of disclosures, notes, recordings or tours of conditions. These conditions also apply to e-banking and federal banking agencies continue to update consumer laws and regulations, the impact of electronic banking and online customer relationships to reflect.
A committee should understand the financial institution and manage the risks that are associated with e-banking services and the emerging risk management costs against the potential return on investment-bank Offered in essential services evaluated. Poor e-banking planning and investment decisions are to increase the strategic risk of a financial institution. Early adopters of the new e-banking services can be as forerunners who may expect to establish the needs of their customers, but by then incur higher costs and increased complexity in their decision.
One institution, e-banking services to offer, especially the more complex transactional services and significant increases in its level of reputation risk make risked. Some of the inputs, which e-banking affect the reputation of an institution may include, loss of confidence due to unauthorized activity on customer accounts disclosure or theft of confidential customer information to unauthorized parties(e.g. hackers), failure to marketing requirements, supply, failure to provide reliable service on the basis of the frequency, or duration of service interruption, customer complaints about the difficulty in e-banking practices and the inability of essential services desk to resolve problems, and confusion between services that are provided by the financial institution and the services which has been supplied by other businesses, which has been linked from the site.
d. Purpose of Study
E-Commerce revolutionized the way business is headed. New business models to replace outdated and organizations to think of business processes and customer relationship management strategies drafts. Banks are no exception to this transformation. This study examines the views of bankers on providing banking services to help customers use the tissue. Specifically, it speaks expenditure, such as the strategic need for Internet banking, its effect on client-bank relationships, and the experiences of customers in internet banking.
Advantages of internet banking to banks
I. Cost savings
Orr (1999) states, the electronic processing dramatically reduce the cost per procedure, according DiDio (1998), the average transaction cost at a full service bank about $ 1.07. It reduced to $ 0.27 an ATMS and falls to a penny if the same transaction is conducted on the fabric. Also, there are opportunities for banks to hand over customer invoices electronically. The cost to deliver invoices to be electronically much lower than when the bill was in paper form, which has been delivered through the mail. Irvine (1999) states, the electronic bill presentation costs 40% less than paper delivery. These cost savings can offer customer pays, and similar reduced costs of the banking system and still provides effective and differentiated services.
II. Loyal customers
Loyal customers have in a new study that was conducted by Forrester Research, 61% of respondents claimed that if their banks offered financial services that they wanted, they would prefer the service of the Bank use. With this knowledge of the Offering consumers interest in mind to move banks, a "hub" of financial services including bill presentation and payment, financial planning, estate planning, insurance, loans, and brokerage services. The Internet allows for these converging financial services not previously available in one central location.
III. Offer additional services
Do you offer additional services as mentioned above, to move many banks to offer customers a financial portal? This portal concept offers banks a new role in the business of serving customers. Simply an Internet presence has not supplied one income stream banks. However, by offering a wide array of products and services that can benefit from internet banking integration. By creating financial portal where consumers can manage a wide range of financial activities, such as stocks and mortgages, banks can benefit from offering Internet capabilities to help customers (Wah, 1999).
IV. Internet Profit Generation
E-commerce, if properly integrated into existing banking operations can lead to significant cost savings and higher profitability. Find cost savings due to automate customer negotiations, such as fund transfers, payments, account balance inquiries etc. Strategic alliances with insurance companies, mortgage companies and stock brokerage firms can lead to additional business opportunities that will otherwise go unfulfilled. In addition, banks can retain customers more effectively if offering services, the value-addition are. High-profit customers, which some studies suggest that entice the demographic of internet banking customers. Wells Fargo Bank online customers have an annual median income of $ 75,000 with higher education levels than the average wells Fargo customer (Hoffman, 1999a). Also this group of customers is more profitable than the bricks-and-mortar counterparts. They generate 50% more income than the average wells Fargo customer, holds a 20% increase in balance, yet uses 50% product, and its wear rate is 50% of the total wear rate. Furthermore, on average, it costs 14% less compared to those customers' bricks-and-mortar customers (Time well and Kung, wait 1999).
Advantages of internet banking to consumers
A. Cost savings
Cyberspace is cheaper to operate than brick and mortar structure, and this cost advantage can often be further passed to consumers. The Internet Banking cost structure allows consumers to receive cost savings, and financial benefits for depositing online. A comparison of the (e-banking) and depositing one (parent bank - a brick and mortar bank) offers an illustration of this point. For checking accounts Wingspan offers an interest rate of 4.5% interest, which is compared, one1%deposit.It also offers more options begins in the mortgage and insurance, with 60 loaning companies and 15 insurance salesmen. It also offers customers an advantage over to his parent in the field of electronic bill payment, which offers the service for no extra charge, while depositing, one invites $ 4.95 per month (, 1999).
B. Access to additional services
On Basic transactional web sites allows customers to check account adjustments, possession and new banking statements. Systems that allow customers to initiate negotiations on-line, such as transferring money between accounts or making payments, provides customers additional benefits. These elevated sites allow customers to pay bills to request and review loans and mortgages, credit cards and checking accounts. The financial institutions that offer extensive online services, well, are set to be a leader (Hickman, 1999). By offering this great umbrella of the service trust of one who pays the institution, these companies can save a larger share of the financial transaction from a customer.
C. A good shopping stop:
Banks, adds real time loan applications, added the ability to make IRA investments, the opportunity to trade shares through their websites. The tendency for flocking that is pays predicted to shape the future of Internet banking on. This concept of "one-stop" shopping is convenient and leads to more satisfied customers.
2. Literature review
In literature review I shall discuss the following:
a) Critical review of the literature as Use of relevant literature
b) Evidence of understanding the ideas expressed
c) Develop a critical focus
Critical Review of the literature:
Paying online or Internet offers consumers and business like the convenience of managing banking and financial responsibilities of home A. Online banking can also be a lifeline for those who can not leave his house, or may live in rural areas where access can be restricted to banks. To be able to check your bank, savings and justify Digital Banking customers have a range of internet banks have to meet those needs to ensure customer loyalty. Consequently, change Internet banking services in general, and on finding feedback paid online services are important to this book. Our investigations of online banks allow you to compare internet banks and to find the best service that is available with investigations of Lloyd internet banking, a paid online, a HSBC and Barclay's internet charges among others. If you are Internet banking, please send us your internet, the review and makes known repaying us your thoughts and experiences of the personal Internet banking
INTERNET BANKING SERVICES AND FEATURES
i. Checking your balance and statements online
ii. Fund Transfers
iii. Bill Payments
iv. Managing savings and current account
v. Cards service
vi. Order cheque and books request
vii. Please ask for stop cheque payments
viii. Fixed Deposit accommodation
ix. Requested by the Statement
Internet distribution strategy decisions
These are the key strategic decisions for e-marketing with strategic choices for traditional marketing. They engage in selective target customer groups and giving, how to deliver value to these groups. Segmentation that aim is to have differentiation and positioning of the entire key to effective digital marketing; the main thrust of the e-marketing strategy is takes decisions on the selective targeting of client groups and different forms of value delivery for online channels.
It is a similar issue with e-buyer strategies - see link at the footer of the article. In an e-marketing context, we can say:
a. E-marketing strategy is a channel strategy.
b. Specific e-marketing objectives must be set adoption rate of e-channels have been compared to other channels for different audiences.
c. E-channel strategies thrive on creating a different value for all parties to a negotiated.
d. But E-channel does not exist in isolation, so we still need to manage channel integration, and acknowledges that the adoption of e-channels will not be suitable for all products or services or generates sufficient value for all partners.
Thus E-marketing strategy is defined as we should:
a) Communicate the benefits of using e-channel.
b) Guide Put priority on public or partners for e-channel adoption of third targeted. Set priority products and has sold through e-channel purchased.
c) Achieve our goals through e-channel tactics for online customer acquisition, conversion (conspiracy) and retention.
A strategic option exists to replicate offline segmentation, which aims at a differentiated manner, and in the online channels. While this is relatively easy to run the company will likely lose market share, compared with more nimble competitors who modify their approach to online channels. An example of a strategy makes no grocery shopping, where some pet shops have released to all parts of the country or not, not providing the service in general. These supermarkets will lose customers to the most enthusiastic adopters of online channels, such as Tesco and Sainsbury; the victory will be difficult to be back sides in future.
- Segmentation / strategy aimed at - company online customers have different demographic characteristics, needs and offline behavior to its customers. It follows that different approaches may be required to segmentation, and specific sectors may be choosy need to be targeted.
- The manner / the online product differentiation strategy - competitors and service offerings are often different in the online environment. Develop a suitable online value proposition is as below describe an important aspect of this strategy. Has many examples of online information is based on the lower costs achieved distinction in and retaining online customers, which are then passed to customers.
- Retailers offering lower prices online. For example Tesco (price promotions on selected products), Comet (discounted when compared to in store on some products)
- Lower cost airlines offers flights to online bookings. Examples: easy Jet, Ryan air, BA.
- Financial services firms offering higher interest rates on savings products, its lower interest rates on credit products such as credit cards and loans. Examples: Nationally, federal and Leicester.
- Mobile phone network provider or Utilities, the lower cost of fares or discounts offered for customer accounts that are managed online paperless billing. Examples: O2, British Gas. Other options for differentiation are available on-line for companies where their products are not suitable for sale online, such as high value or complex products or FMCG brands sold by retailers.
These companies may use online to add the brand or the product value by provide additional value services or different types of experience.
1. Online CRM strategy:
It will focus on various aspects of the customer life cycle for online customers in terms of:
- Acquisitions - Strategies, attract new customers to a company, and existing customers about online channels, to migrate. Separate targets should be set for each.
- Retention - using online channels proliferate, retention, and value of the customer company.
- Reactivation - encouraging continued use of online channels from customers that have passed, for example, had online or home shopping service, buys the service, but has now stopped. This may be driven by setting targets for% active customers.
- Customer knowledge (familiarity) - learning more about the customer through profiling and monitoring of behavior.
2. Online value proposition strategy:
It defines the value proposal for the acquisition and retention, engage with customers is online. Close communicative and promotional incentives which use to encourage trial. Program also defines the value creation through time - for example, white papers are available for example monthly or seasonal sales promotions made. 3. Online has targeted range strategy. Objective: Communicate with relevant online audiences to achieve communication goals. The communications typically include: building brand awareness and favorability build impulsive online purchase, growing offline purchase intent, list or migrating existing customers to online channels.
New customer acquisition:
Communication strategy with selected sections of online customers through media buying, PR, is to sending e-mail, viral campaigns and sponsorship or partnership arrangements. Driven by goals of the online audience is share and number of visitors placed in different sections.
The strategy may involve:
A. To drive visitors to the company office
B. To achieves brand awareness and interactions on third sites.
C. Building brand awareness, favorability and purchase intent on third may be a more effective strategy for low participation FMCG brands, where it will be difficult to encourage visitors to the site.
D. Offline has targeted range strategy. Encourage Target: Potential customers who use online channels that Visit site and performed where relevant.
Focus: New customer acquisition and migration of existing customers online. Strategy to communicate with selected customers, divide by offline direct marketing, media buying, PR and sponsorship, driven by goals of the online audience share and number of visitors placed in different sections.
E. Offline Sales Impact Objective Strategy: Use on-line communications, sales achieved by offline channels.
Focus: Achieving sales off-line (new or existing customers may be defined) strategy, such as on-line communications through the website and the e-mail offline sales i.e. influenced by phone, mail or in-shop can.
F. Online Sales Efficiency Strategy
Objective: Job visitors turn to buy
Focus: Achievement sales online (may encourage new or existing customers to be)
For transactional e-commerce jobs, a strategy that point visitors to purchase online - mercantile, promotions, etc. For other types of agencies multiplying conversion factors leads. As part of this strategy options to convert visitors to action, exploring reduce (or attribution installments) is, i.e. first-time buyer promotions, job design improvements, website and landing page optimization. Triggered event, has e-mails are used automatically to convert potential sales to sales.
Although cost in retail banking in Europe is confronted with quite similar challenges and changes that are changing responses considerable.
1. This shows the changes in the strategic orientation:
Which are apart from walking organization structures by individual banks and different characteristics of national markets? The operating authority and the capitalization of banks play an important role in the selection of a suitable banking strategy. Country-specific factors include customer benefits, the degree of competition and informal legal framework, among other things,
a. This article focuses on retail banking strategies. The emphasis is on retail banking in the broadest sense of the word. In fact, many banks have re-discovered in the retail cost, which pays for the collapse, charges of operating and investing activities and the fall in stock prices over the last few years. In section two we begin with a brief summary of known trends in banking.
Sections three to four focuses on domestic and international banking strategies, respectively. Both sections have the same statement. The first part describes the retail banking strategies in general. The second part of the business with strategic positioning of the Rabobank Group and explains how Rabobank
Group with these general trends and challenges overcome.
2. General trends in European banking
Which will be depositing the Europeans who pays the countryside, continue to experience dramatic change over the next few years (see McDonald. Trends affecting the banking industry include privatization, regulation and supervision, demographic factors, a technological innovation - yet - the EMU and the importance of propagating sustainable banking. The privatization of banks is high on the agenda in France, Germany and Italy. As the influence of government relations in competitive weight loss financial sector, and in the banking industry in particular, is experiencing significant change. Developments in regulation and supervision affect the banking industry through various Channels.
It was not until deregulation of the financial sector will continue to eat away the barriers that deny access to the market for new suppliers of financial products. On the other hand, we see an increase in national legislation, particularly in the area of consumer protection. Regarding supervision, the new BIS capital adequacy rules, tremendous impact on the all banking business have. The combination of an aging population in Europe and financial constraints on state pensions will be a surge in filling retirement benefit plans to produce. These various developments are the implications for traditional forms of saving and, therefore, for the financing activities of banks have. In this respect, an analyst strong growth among institutional investors, including pension schemes before.
1. Does German bank Research for an analysis of banking strategies in European countries.
2. Argue that technological developments are fundamentally changing the cost structure, output mix and distribution channels of banks. Actually, he goes too far
say that the developments in information technology the most fundamental force for change in the financial sector. Those procedures for deeper and more liquid markets resulting from EMU main euro will continue for some time. These will increasingly cheaper and easier for medium and large corporate do, raise money directly in these markets instead of borrowing from banks. Finally, the growing importance is sustainable banking is a tendency that can not be denied. Banks will judge on their apparent social and selected environmental responsibility by customers and investors.
3. All these driving forces behind the structural changes in the Europeans,
pays the industry not only has an independent effect on the structure of the market, but also acts on each other and thus enhance
can. These factors include far-reaching implications for the market structure, the characteristics, such as: concentration, capacity, competition, efficiency and profitability. There is competition among banks but also between banks and other things, the new financial intermediaries to be strengthened.
4. Internal strategy of costs in retail banking. This section describes strategies in general.
The strategic vision and the election of the Rabobank Group are discussed in section 3.2. 3.1 Inside strategic options, strategies Deposit, improve performance, and grow in domestic markets, can in three
Main categories are divided:
A. Cost reduction
B. Income growth or organic
C. Associations, and acquisitions and cost reduction frets A.
Different costs, the strategies can reduce as regular as thin down, multi channeling, and outside-in and co-sourcing. Thin down refer to the assessments of banks of ways to improve their internal cost structure, and to increase efficiency. This takes place when economic conditions are unfavorable, and happens every few years. New elections are on priorities and the bands of the working staff is close been investigated by the bank. Other companies, banks tend to "grow fat" in prosperous times, is usually compensated for in an economic downturn. An additional driver for cost reduction is the current trend of changing distribution channels that are caused by ICT innovations. Banks will be forced to invest heavily in ICT to stay competitive. Most banks now use a multiple approach in guiding the distribution of their products and the maintenance of their customers. Use branches, telephone, ATM and Internet all at once. The public has a massive shot to the new (direct) channels, which have reduced the number of visits to the bank itself, the development of customer and a blueprint for the future.
This change provides customers preferred a great opportunity to reduce the cost of relatively expensive branch network to. Many banks are therefore currently re-examining their distribution processes. However, ICT investments are high and therefore it is increasingly important for banks to organize their back offices in the most effective way. Sufficient scale to reduce unit, or transaction costs are the key. Banks can choose from several strategies to optimize their back office activities: co-sourcing, in sourcing to stock and white labeling off. Co-sourcing is the caterer of back office platform with another bank. In sourcing means the back office operations for other parties running in order to realize sufficient scale. Outsourcing is the order of activities and buying them back from other companies. White Label states the production of products for others, mostly non-financial parties without a label.
5. within organizations, can set up to scale economies of shared customer service centers are met. Shared customer centers show the interlocking of back office operations of several subsidiaries. They can be seen as an internal coor in sourcing initiatives.
6. This strategy is described under the income increases, the strategies. Technically speaking depend, is the preferred strategy Art sourcing mainly on the shape of cost curves for a certain product, the position of the bank on that curve, and the price of the option.
7. There are three hypothetical cost curves from the shape of the curves may differ for different products, because the relationship between fixed and Variablekosten varies per product. The curves do not necessarily show a continuous downward slope with wax volumes, since likely at some point need new investments to be treated, propagation, characterized scale. Theoretically, therefore, can lead insourcing, intuitive results
counter: multiplying unit cost. The position of the cost curves can also differ between countries, which are the main driver behind the current trend of outsourcing ICT activities to low wage countries such as India. Expect 2 Hypothetical development of
average cost Source: Rabobank is not a useful long-term cost reduction strategy. Constantly focus on cost reduction will ultimately affect the quality of products and services and the innovative character of the institution, its
competitive position and would jeopardize continuity.
Too much focus on cost reduction will lead to poor workers and suggested a diminishing capability to take advantage of new market opportunities when the economic climate improved.
As income or organic growth than cutting costs, banks also need to determine what strategy to follow, they want to increase revenues.
Earnings growth can be achieved:
Pull in new basically two ways
Customers or outside costs (curves) into account, sourcing decisions also depend on the legal framework, issues concerning procedural complexity and its impact on the competitive environment from. Why you would you help a competitor in the market by performing (part of) its back office activities
2 to remain longer sold at Existierenkunden.
The feasibility of these strategies largely depends on the characteristics of the banking market of the specific country. First of all, requires successful cross-selling used and loyal customers. If customers are not used, it would be advisable to focus on new customers rather than to Existierenkunden.
Expect 3 shows the customer's requirement profile of several European countries. Interestingly, the commitment levels differ widely from across Europe. Customers in the Nordic countries are generally quite satisfied with their banks. On the other customers in Southern Europe, and less in Germany with their banks.
Link 5 customer commitments with the level of cross-selling displays are pleased that countries with high customer commitment, the highest cross-selling ratios shows. One would expect the potential cross-selling to be highest in countries that actually have limited cross-selling, but that is not visible. Sell countries with low cross-actually has the potential cross-sell low. The requirement profile seems therefore to determine the potential cross-sell to.
5, which are the reasons for these differences beyond the scope of this study?
6. Which illustrates the diagram that the scope for individual banks to attract new customers, through different countries. One strategy to increase revenues is to increase the share of wallet 'of retail products from customers (to satisfy all financial needs of the customer), the selling can take the form of cross-selling or deep. This strategy appears to be difficult because customers tend to be less loyal to a supplier of financial services. The Internet has the financial services market more transparent and therefore reduced fidelity made. However, banks that want to increase the share of wallet, must focus on customer satisfaction (as we have already) seen. Another way of improving the loyalty of customers is the introduction of loyalty programs accommodative loyal customer's special benefits. Cooperating banks may have a strong loyalty tool, the membership of the bank. Cooperating banks must find clever ways fully benefit from this strategically important mark. Good knowledge of your customers is another prerequisite for a successful increase in the share of wallet. CRM systems are a useful tool to recognize this. A good understanding of the customer and a suitable product range are very important. This is why some banks choose to adopt a niche strategy, and focus on a specific customer segment. Banks do not have to limit themselves to their existing distribution network and brand.
There are many alternative distribution options, which is often referred to as multi-distribution.
The attractiveness and feasibility of this option depends on the circumstances in the country. These circumstances include elements such as concentration, diversification possibilities, synergetic opportunities and the attitude of the supervisory authorities.
8 Domestic M & A's can deliver both cost and income synergies. Cost synergies are mostly reached when two banks merge, since they both have the same type of support departments, ICT systems and distribution channels. Inter sectoral mergers (for instance banks with insurance companies) show less promising cost synergies, because of the complexity of the integration process and cultural differences. These inter sectoral mergers do show the potential for revenue synergies, because the different products of the merged companies can be sold through the distribution channels of both institutions. However, in practice, these synergies are hard to achieve and the costs of the merger often exceed the revenue synergies. Forming an alliance can be an attractive alternative. The alliance offers the possibility to achieve synergies income without the expensive integration process. Alliances are often complemented with cross-shareholding to underline the dedication to the cooperation. Alliances that work out well may eventually lead to full mergers.
3.2 Domestic strategy of Rabobank Group
Overall strategy: The Strategic Framework
Rabobank's strategy is a mixture of cost reduction and revenue growth strategies. The actual implementation differs from competitors in significant ways. The strategic actions have to be in line with our cooperative identity. The main goal is to Maximize customer value instead of profit Maximization. Our shareholders are the members of the local Rabobank. However, a significant level of profitability is indispensable to survive and to FulFil the core objectives in the future.
That is why financial targets are set for individual local banks and the subsidiary companies.
Table 2 Key s Rabobank Group (2003)
Financial (in EUR mln) Ratings
Total assets 403.305 S & P AAA/A-1 +
Tier I capital 19.660 Moody's AAA/P-1
Net profit 1.403 Fitch IBCA AA +
Ratios Other data
BIS ratio 10.9 member banks 328
Tier I ratio 10.8 Branches 1.378
Efficiency ratio 67.60% Agencies 356
Return on reserves 9.4% Employees 57.055
Rabobank The overall interpretation of the trends is reflected in the so-called Strategic
Framework. This framework sets out the domestic strategy of Rabobank Group. 5
summarizes its main elements.
The overall strategy is Aimed at market leadership. Market leadership means that the clients see the Rabobank as leading in the respective segments of the retail financial markets. This implies that Rabobank is convinced of the advantages of the allfinance concept. To be considered a market leader by customers and shareholders, it is important to be a front runner regarding new products and distribution channels.6 In fact, Rabobank was an early adopter of the new virtual distribution channels and it is the largest internet bank in Europe (see table 3). At the end of 2003, Rabobank became the first European bank to offer transaction services on i-mode technology.
European Supreme 10 Internet banks (as measured by domains, see 2004) 7 March 6 Smits and Groeneveld (2001). 7 is based on research in Germany, France, Italy, the Netherlands, Spain, the Unite
Kingdoms and Sweden. Strengthening the subsidiary customer value market leadership, the strength of the local Rabobank adder new subsidiaries strengthens, strengthens position in production core goal:
In the daily tracking of costs in retail banking, is a high degree of business social responsibility are increasingly important. The internationally renown, the agency Sustainable Asset 'assessment functions, in Zurich is found, says that social responsible entrepreneurship of the international Rabobank Group sets the tone. In 2003, Grouped sustainability, the assessment functions for Rabobank, has 74 to be on a scale from 0 to 100, of the highest of all European banks. A high level of sustainable earnings is also important from a financial standpoint. Investors are increasingly guided by these assessments, because they can provide useful information care about the risk and the Rufprofil a bank. In this respect, Rabobank compounds are a unique investment opportunity. This compound sources: Rabobank 11 combine a triple-A rating for Creditworthiness with a triple P taxing for sustainability8. For the future Grouped Rabobank has set priorities for its sustainability principle. For example, with additional social and environmental criteria when Loan guarantees are used. We will now describe some salient aspects of the internal strategy of the Rabobank in three consideration: A. reduce costs as revenue growth or organic C. associations, and Acquisitions and frets of course, include these strategies are not mutually exclusive and are used in practice. A. Cost reduction
they take on the use of the methods. g stated reasons are for Benutzentyp methods, appropriateness and the scope of application of negotiation / HOLDINGS RISK: In most cases, e-banking activities, the complexity of the activities of the institution and the quantity of his trial / holdings increase risk, especially if the institution offering innovative services which have not been standardized. Because customers expect that e-banking services are available 24 hours per day are available, 7 days per week, financial institutions should ensure that their e-banking infrastructure include sufficient capacity and redundancy to ensure reliable service availability. Even institutions that e-banking, a critical financial consideration due to the availability of alternate channels not processed, it should carefully consider customer expectations and the potential impact of service disruptions on customer satisfaction and loyalty.
The key to effective policing in adapting Kontrollierenverhandlungsrisikolügen, procedures and controls, the new risk suspensions taken to the e-bank are essentially introduced. Basic internal controls including segregation of duties, dual controls and reconciliations remain important. Information security controls, in particular, are more significant requiring additional procedures, tools, expertise, and testing. Institutions should determine, that have the appropriate level of security controls based on their assessment of the sensitivity of the information to the customer and the institution and the institution established risk tolerance level. Security controls are discussed in this publication are "risk management of e-banking activities" section under the heading "Information Security Program." They CREDIT RISK: The following aspects of the online loan approval and development tend to make risk management of the borrower to process more challenging. If not properly managed, these aspects significant increase in credit risk.
Authenticate the identity of customers for online loan applications and perform an enforceable contract;
Monitoring and controlling the growth, pricing, guaranteeing the standards and produced ongoing credit quality of loans by e-banking channels; Monitoring and oversight of third-parties making business as an agent or in favor of the financial institution (for
For example, an Internet) loans rise office or electronic payment processors; Estimating security and perfecting liens over a potentially wider geographic area; loans from individuals over a potentially wider
geographical area, gathering, and Monitoring of some, and possible concentration, loaning out-of-field. LIQUIDITY, INTEREST RATE, PRICE / MARKET RISK
The institution should modify his principles as necessary to address, bank financing essentially posing the following email:
Potential increase in dependence on other fund or has very rate-sensitive deposits mediated;
Potential acquisition of funds from markets where the institution is not authorized to deal in the banking system, especially if the institution does not set up to cover, and geographic limitations; Potential Impact consists of a loan or deposit growth from the
extended Internet market, by including such a shock to capital market growth, and potential increase in volatility of the Fund should e-banking security problems negatively embark on customer confidence, or the sensation of the market.
COMPLIANCE / LEGAL RISK
Specific legal and regulatory challenges include:
Uncertainty about legal jurisdictions and what the state or the laws of the country, a specific e-banking, negotiation, delivery of credit and deposit-related disclosures / Notes governed, as required by law or regulation, retention of the required compliance documentation for online advertising, applications, statements , disclosures and notes, and the establishment of legally binding electronic agreements. Some of the statutory conditions and statutory guidance, often for e-banking products and applicable services, including: requests, gathering and
chronicling of government monitoring information on applications and loans, as required by assimilated credit opportunity act (Regelungsb) and home mortgage disclosure act (Regelungsc) regulations; display conditions, customer disclosures, or notes required by the Property Is decision-making (ReSPA), truth in borrowing (Regelungsz) and truth lodging in savings (Regulation DD) and Equitable regulations;
Matching and striking exhibition by FDIC or NCUA insured notes; Striking Web site disclosures, insurance products are offered to certain risks, have combined to close not to be assured by a by federal deposit insurance (FDIC or NCUA), customer identification programs and procedures and record retention and Kundennotifikationbedingungen required
by the bank secrecy act, customer identification process to determine whether negotiations will be banned from the Office of Foreign Assets Controls (OFAC) and, if necessary, whether customers appear on any list of known or suspected terrorists or terrorist organization that supplied by any authority of the government is, delivery of the rest and decides otherwise notes
by hand, by mail, or by customer acceptance of electronic receipt;
Confirming the customer identification, reporting, and record-keeping conditions of the bank secrecy act (BSA), including conditions for storing a suspicious activity report (SAR), and record retention conditions of the same credit opportunity act (Regelungsb) and Equitable Credit Reporting to Tatregelungen. Institutions, the e-banking services, both informational than transactional offer to take a higher level of settlement risk because of the nature of technological change, the speed can be replicated at the fault, and the frequency of statutory changes to address e-banking expenditure. The potential for violations is further increased by the need to ensure consistency between paper and electronic advertisements, disclosures, and notes. Additional information on banking conditions for e-fulfillment can be found on the websites of the agencies and in references that are contained in Appendix C..
STRATEGIC RISK especially financial institutions should pay attention to the following: adequacy of management information systems (MIS), e-banking need to pursue, and profitability, bank costs have essentially involved in surveillance activities or cost have in overseeing banking and technology vendors involved waiting for utilities, design, delivery, and judgmental of services that are adequate to generate sufficient customer demand, retention of electronic loan agreements and other electronic contracts in a format that will be admissible and enforceable in court, on the cost and availability of staff to provide, to exchange implicating multiple operating systems, Web browsers, and communication devices, competition from other e-banking, utilities, and Adequacy of technological, operational, compliance, and marketing support for e-banking products and services. Security issues in every single business has its own security issues, although very few can be anything like the full range of issues. The list below was supplied explicitly by the ISIS project in satellite multimedia services, Internet to classify security related issues: - • Servant Security page - consumer authentication - Firewalls - Protecting documents • Transmission security - encryption - Secures E-MAIL - Secures HTTP - Backs Electronic negotiation - security and multicasting Client side security - viruses, worms and Trojan horses - External audiences - Applets - resting http://www.martech-intl.com/best2/banking.htm (Testimony of problems) Affordable One-Stop, purchases of the customers is through have a wider range of services available will benefit from a trusted institution. Use the Internet, can create financial information from a bank, information that is stored in a program such as accelerated, QuickBooks, Microsoft Money, or linked on a home computer (Fysh, 1999) will. These features improve "stickiness" of customers leads to a lower wear rate.
Internet profit generation, this has been clearly demonstrated in the case of wells Fargo Bank. As people have moved online with wells Fargo, has the percentage of customers taking their business elsewhere, dropped 50 percent. Following this positive experience with online banking sector is one in six of the new customer referrals from the bank Existierenkunden and has therefore the bank does not cost anything, they (Meckbach gain 1999). Loyal customers provide sites that financial converging to the customer, will create a more complex banking customers, the more often the body and the banking sector encourage more likely use is that you have offered the services. The idea is that by creating a more loyal customers, which depends on a bank for many financial services, can be held together more gripping and more revenue per customer can be created.
Purpose of the study data that is collected from 75 banks, shows that most banks are not yet ready to offer Internet banking. However, most plans have to do so. Furthermore, bankers see Internet banking as a strategic opportunity to reduce transaction costs, increased customer service and increase to improve the customer base and cross-selling opportunities. Also, Internet banking is more favorable to banks, which have compared it to offer perceived to those who do not stop. STRATEGIC RISK. Conversely, late adopters, the higher output and the additional complexity may not have avoided, but so does the risk of not meeting customer demand for additional products and services. Has to manage the strategic risk with e-banking related services, financial institutions should be clearly defined e-banking development goals, through the institution can evaluate the success of its e-banking strategy. The purpose of the thesis, which you could consider it as an essay or assignment is extended. However, although a dissertation can be seen as a difficult piece of work, it's a good idea to think of it as supplying a real opportunity to explore something that really interests you within your course. It
edit, should be a very exciting time for you.
You may ask yourself, what looks like a finished dissertation, such as. There is abundant in the library for you to read. If you note to investigate it, how it has changed are. There is no single "recipe" for a dissertation. The results show that both practical and psychological barriers, it's telling result of service, channel, consumer and communications-medium-end chains to inhibit the adoption of Internet banking. The contribution of the paper lies in achieving a profound understanding of the more appropriate sales resistance to Internet banking, and further, in offering suggestions and practical advice for decision-making by service providers. In some areas of the local Rabobank market leadership has been recognized. Because of our agricultural roots, market shares of major cities is less remarkable than those in more rural areas. Therefore, an increase in market shares in major cities a high priority. This includes strengthening the market position of one among immigrants.
In other areas of high market share is under some pressure.
For example, new arrivals and the popularity of Internet banking, Rabobank's position on the savings market have put pressure on. In the mortgage market intermediaries have gained market share. It also occupied a local Rabobank not a predominant position in the insurance market. It is recognized that the Rabobank brand and its distribution network has its limitations. Not all customers are attracted to the same brand and will be serviced in the same way. The Reply by Rabobank on these changes for the different market segments. The local Rabobank is still the primary distribution channel, but multi-distribution initiatives have been undertaken to reach customers outside of the sections Rabobank area. New examples are) the acquisition of an online broker (Alex) and the establishment of a mortgage provider for intermediaries (Obvion. Rabobank also has subsidiaries that operate under their own label, as For example, Interpolis insurance and for Robeco funds.
The longstanding experience in the food and agri business makes it possible synergies from Erlangen realizemanagerial worldwidethatareprimarilyinvolvedin of small foreign banks the same business, but can grow almost organically. Table 4 gives an overview of the key acquisitions so far. Share 5 Summary of land banking acquisitions year
Bank, the country in 1994 Primary Industry Bank of Australia Australia 17% market share in the rural credit market of Wrightson from 1998 farmers Merkt, Financed New Zealand 12% share of the rural credit market in the 2002 ACC Bank back to Ireland SME, agri, and personal customer of the valley Independent Bank 2002 United States California agri bank with a focus in 2003 and allows,
Lend lease U.S. agribusiness development and management of farm loans in 2004 Ag Services of the United States Flexible operation funding breeders Source: Rabobank 5th Conclusion Over a macro level, it can be inside and pays international retail strategies neatly divided into a few main categories.
If by the triple-A rating, the increasing number of members and strong Marktespositionen of the local Rabobank evaluate this concept has proven to be very successful for many decades. Rabobank Group has the advantages of the concept Allfinance
convinced. Diversification stabilizes earnings without reducing the efficiency, if the internal organization in order. The cost structure of Rabobank is carefully monitored and outside-in or co-sourcing strategies are used when appropriated. Furthermore,
used multi-distribution, market share gain over beyond the scope of the Rabobank brand. Rabobank International Grouped spreads being picky with the Land Bank concept, which remains close to the roots of the bank.
Let's start first with what you'll find within each video ... * If # 1 Learn to - Introduction to Internet Marketing (41:10), why the Internet is the perfect tool to grow your business is. This video explains that the 6 must have tools for starting or growing a business on the Internet. Align It also covers domain names, accounts, software, send e-mail marketing systems, creditcardprocessorsandmore.OnceyouseehowsimpleitistostartusingtheInternettoattractmorecustoeooner. Customer attraction will be a breeze when you discover this simple, yet powerful tools. * Takes On # 2 - The two key ingredients to business success (50:22) Special Presentation by hopper
Weisman of Weisman Success Resources. Hopper covers the 3 key elements to business success, a key factor that keeps most business owners recognize their true business potential, as he has grown his business 6.000% in a down economy, powerful strategies to overcome delay, how to create a master business, leadership skills and much more . create
* Takes On # 3 - Systemizing your business (39:12) Every business owner needs to effectively run a system in place in order and have to grow their business. This video shows you the right way to AUTOMATICALLY create a system to generate leads, they turned to customers and create strong business relationships for business growth. If you have a system in place, you'll discover how to tweak it so that it attracts and converts more customers than ever before.
* Takes On # 4 - How do you have an online business with no customers walking, no employees and no worries (58:41) Many business owners to supplement their income by adding additional products or services, but employees do not want to add or additional concerns. There are several strategies that you can do to supplement your income, and the additional stress of additional products not to have inventory or employees. This video deck connected programs, referral programs, over-affiliated programs, and more. This video is perfect for small business owners and nonprofit organizations that need to raise additional capital without the added expense. * Takes On # 5 - How To Determine Your Business Identity Bring In creating your Internet marketing, to market the plan (70:59) In bringing to market your business, it is important to know your target market. This video shows you step by step system from aiming right for your specific market. How to evaluate and prioritize customer attraction strategies, and tactics. As a system to follow the course of creating your marketing efforts, and creating a plan for keeping all the necessary strategies to be executed in a lucrative order. You will also learn the most powerful advertising formula that is used to increase ad response, and the most powerful question to ask prospective customers before making a purchase. * Takes On # 6 - The Marketing Matrix (24:49) The 13 distribution strategies you need to run around with, maximum customer
Put your ad budget. You will also learn about the free or inexpensive ways to attract customers, and the most powerful strategy you can immediately run to augment income for your business.
* * Takes On # 7 - Search Engine Optimization - How to Become a top of the search engine list (1) (64:27) Cutting, How to choose the most profitable key phrases to sell your product or service. This makes the tissue and do the design. What you should never add to your body if you want the search engines to find you. Which you worked, you can use to spy on your competition and see what works and does not BEFORE investing works, time and money in marketing your business. Discover what a META label and how you can use it to your advantage.
* If # 8 on - search engine optimization (Separate 2) (63:17), how do you create a profitable PPC campaign that will not break the bank. How to start a Google Adwords account. How to use Google tools, and resources to get the most out of your marketing campaign. How to decode your website statistics, and great benefit from it. How to use directories like the yellow pages to promote your business, and why you should use careful, when you display your product or service.
* * If # 9 on - 7 ways to use a blog to your business (57:35) to grow, discover the many ways that you can use a blog to get your site higher on search engines, classified to keep your customers to increase to date, the relationships of prospective customers, and much more. You'll also learn how to create a blog for free and fee based. How to add a picture, video and audio to a blog, and whether you comments on your blog or do not permit.
* Takes On # 10 - Your manner private blog / e-mail On, Bring on the Market (70:29) to draw up watching the step by step instructions on how your own private blog. Insert images, sound, video, text, files, and adds more. How to add an e-mail, brings to the market system, continue with your prospective clients will automatically tracked for you. The easy way to create your own e-mail list with little effort. How to automate your entire email marketing campaign with a simple, yet powerful tool that increases revenues, if properly carried out.
* * Takes On # 11 - put on linking strategies, article marketing and social networks (54:04) Discover the latest and most powerful Internet distribution strategies that you can run customers. Learn how the strategy works best connected, and why you should stay away from a certain link exchange. How to use articles to promote your site, even if you do not have the time to write them. How to use social networking sites to get the word out about your product or service. Does it all together. Plus the live recorded event, which is captured on video, you'll also receive exclusive bonuses of all software that is demonstrated in the videos. This Softwarebonusse will help you save time and money, when you run the customer attraction strategies you'll discover. The videos will only help you attract more customers now and in the future. However, there is always learning new strategies and to perform every day. Many strategies need to dominate, while others are easy to execute. The challenge seems to be that it just way too much information everywhere, and this makes it very difficult to focus on strategies that will work for your business.
* For this reason I created this membership site. As one member of the exclusive HowToAttractCustomers. com website, you will be fresh, new customer attraction strategies monthly. You will receive step by step instruction videos such as: * How to attract customers to write with a monthly stipend per click (PPC) campaign * How to articles, * attract the maximum customer step by step instructions on creating and
Updating a blog * Higher blogging business strategies * How to set up a system to keep automatically send customers to your money * How to set up an email marketing campaign on autopilot * Step by step video on your website or blog Addiervideo * Teaching videos show how to creating a site from scratch * and much more that you will also rediscover some traditional distribution strategies, online at
can be performed, reduce expenditure and increase in responses indicative.
· If you are a member, you will see all the business resources available to you. You'll wonder how you have grown farther without them, and you will see that business may actually be more profitable. What's better is that every single month, you will have access to resources that can literally multiply your customer base virtually overnight. .. once you act.
Presentation and analysis e.g. Description and placing the student; presentation of results, analysis of the results of Europeans, ONLINE STRATEGIES
European Internet banking customers DEPOSIT determine 1999-2004 17,000 consumers in Europe, the current penetration and future predictions of the econsumer are likely to pay online business INSIGHTS
Banks were the epitome of the solid, more relaxed wealth, secure behind its marble walls have been. But they have crisis after crisis in post-war face to face, challenge after challenge. Now they are the most serious threat to by all. Traditional banking system can not resist the onrushing impact of electronic commerce. A simple proof: the cost of a normal banking transaction in a branch are 100 times on the fabric. Anyone who doubts the willingness of customers to conduct financial business on the Internet, you need only look at the huge progress of online trading in investments. Led by Charles Schwab, upstarts have attracted huge traffic. Others deal is certain to follow these quick steps. Investment is an area where banks have hopefully set up, has sought to compensate for that lost business elsewhere. But they will not escape from Eherausforderung find anywhere.
Here, as in most markets, the Internet is a "disruptive technology". The phrase was used by Clayton M. Christensen in his book, the dilemma Des pioneer, has asked why so many successful companies - even the few that had met the challenges head-on - had been undermined by upstarts, use of new technologies. Mastleiter simply the threat, not out of stupidity, but ignored for sound economic reasons. Usually newcomers small or nonexistent markets, packaged functionality are offered below, have earned lower prices and smaller profit margins existent - and does not call for leaders, profitable customers had. The classic example is IBM and the PC. Although it has responded with enormous success for the small roast, led by Apple, has dealt with the giant small machines as a subordinate to his considerably more expensive, profitable and powerf
Cite This Dissertation
To export a reference to this article please select a referencing stye below: